October 24th, 2013
Update: Several commenters below have reported getting even more lucrative offers in the mail, so if you do have a Discover card keep your eyes peeled for stackable offers via email and snail mail as you’ll likely need to register for each of them!
-Discover it® for Students
-Need To Meet A Spending Threshold Deadline? Send And Receive $1,000/Month With No Fees Using Amazon Payments!
Discover cards are great for building credit as they’re easy cards to get. They even have a student card as an option. But everyday spending only earns 1% cash back on the Discover it cards which is easily beat by any mileage earning card.
They are useful for a few things though. They have rotating 5% cash back categories. Through the end of the year you can earn 5% cash back on any online purchases up to $1,500. That even includes Amazon Payments!
Additionally if you have a Discover card be sure to check your email today to see if you are targeted for a promotion that will earn you an additional $30 cash back on purchases of at least $1,000 between 11/01-12/31. You can earn the $30 bonus 3 times.
If you are targeted you can send a friend $1,000 via Amazon Payments next month and you’ll make yourself an easy $80 cash back thanks to the stackable promotions (1,000x.05=$50+$30). Do it again in December and that transaction will earn you $60 cash back ($500x.05+500x.01=$30+$30).
When using Amazon Payments between friends it’s always a good idea to include at least a few people in a circle so that you don’t just send money back and forth between each other. It’s also not a good idea to logon to multiple Amazon Payments accounts from the same IP address.
Another nice thing about Discover? No foreign transaction fees and they do cover rental car insurance in Israel. Just be aware that Discover will only cover up to $25,000 of damage to a rental car.
They also give you a bonus on your cash back if you redeem for a gift card. You can use $40 cash back for many different $50 gift cards like Bed Bath & Beyond/Buy Buy Baby, Brooks Brothers, Children’s Place, Gap Inc, Staples, and more. There are also other levels like $70 for $75 at Shell or Whole Foods.
So that $80 of cash back (8%) from a $1,000 Amazon Payment can become $100 (10%) when redeeming for gift cards instead of cash.
I still love my mileage earning cards, but those numbers are nothing to sneeze at. I only got a Discover card because as any Clevelander will tell you, you need to have one so that you can shop at Marc’s. But I’ll admit to enjoying these stackable opportunities as well.