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Eligible Discover credit card holders can now activate bonus 5% cash-back categories for the third quarter of the year. Cardholders earn 5% cash back on up to $1,500 in spending across purchases made at restaurants and PayPal from July to September (then 1%).
Discover revealed its full 5% cash-back calendar for 2020, so you can take a look at the bonus categories for the whole year.
Here are the bonus categories for 2020:
Discover and Chase are the two most popular card issuers offering 5% cash-back cards. Here's a side-by-side comparison of the two cash-back calendars for 2020.
This comparison shows that for 2020, both Discover and Chase included common spending categories, such as gas stations and grocery stores, in their calendars. Plus Discover included restaurants, while it's yet to be released if Chase will too. In 2019, Chase didn't include restaurants.
To earn 5% cash back, you're required to activate bonus categories each quarter. After you activate bonus categories, you can start earning 5% cash back on eligible spending. Discover lets you set up email alerts and you can add reminders to your calendar, so you don't forget to activate.
Earning 5% cash back isn't unlimited. Each quarter, after you spend a combined $1,500 in the bonus categories, the cash-back rate drops to 1%. This maximum spending requirement resets every quarter.
All other purchases made outside the bonus categories automatically earn 1% cash back. If you want to optimize the amount of cash back you can earn, we recommend using an alternative cash-back or rewards credit card for spending outside the bonus categories, so you earn at least 2% or 2 points per dollar spent.
Don't miss: Chase Freedom 5% cash-back calendar
Information about the Discover cards have been collected independently by CNBC and has not been reviewed or provided by the issuer of the card prior to publication.