Discover Cashback Debit Review 2024 – Earn Cash Back on Debit Purchases

The Discover Cashback Debit card reimagines the traditional banking experience by combining the reliability and structure of a well-established financial institution with the innovative perks of modern fintech. At its core, the Discover Cashback Debit Account promises an enticing proposition: the opportunity to earn cash back on everyday purchases without the typical constraints in credit card offerings.

Our review delves into the practicality and value of the Discover Cashback Debit Account, exploring its features and benefits and how it compares to the competition in a bustling financial market where consumers are constantly looking for ways to make their money work harder for them.

Discover Cashback Debit Review Features

Cash Back Rewards on Debit Card Purchases

Discover will pay you 1% cash back on debit card purchases up to $3,000 monthly (see website for details*). That will allow you to earn up to $30 in cash back each month, or $360 per year. It’s the kind of offer that’s typical with credit cards but very unusual with debit cards. The Cashback Bonus can be redeemed via a credit to your Discover debit, savings, or money market account.

Cashback does not apply for purchasing money orders or other cash equivalents, cash over portions of point-of-sale transactions, peer-to-peer payments, online sports betting, Internet gambling transactions, and loan payments or account funding made using your debit card. You should also be aware that purchases made using third-party payment services, such as Venmo and PayPal, may not be eligible for rewards.

Important Benefit to Discover Credit Cardholders: Discover Cashback Debit Bonuses can be transferred to your Discover Credit Card Cashback Bonus Account in any amount.

• Account Access at More Than 60,000 ATMs – Discover participates in one of the largest ATM networks in the country (Allpoint and MoneyPass). You can make cash withdrawals without paying a fee.
• Online Bill Pay – You can pay bills online. Enroll in the program, and you can use the service to pay utilities, insurance premiums, loan payments, or even individuals, such as family and friends, your landlord, or contractors. However, they recommend against paying government agencies, like the IRS, or payees outside the U.S. The service can be used to make one-time or recurring payments. There is no fee for the service.
• Digital Wallets – You can link your debit card with Google Pay, Apple Pay, or Samsung Pay. Even if you do, you can still earn cashback rewards.
• Person-to-Person Transfers with Zelle – You can send and receive money through your account using Zelle. That will enable you to transfer money back and forth between family and friends.
• Mobile Banking – The Discover Mobile App is available for Android, iPhone, and tablets. You can deposit checks using the Mobile Check Deposit Service and pay bills using the Bill Payment Service. The mobile device can also view your account activity, set up one-time or recurring transfers, contact customer service, redeem your cashback bonus, or find a no-fee ATM nearby.
• Overdraft Protection – You can set up overdraft protection by linking a funding account to your debit account. This can include a Discover Money Market Online Savings Account or another Discover Cashback Debit Account. The service covers checks and electronic transfers but not debit card purchases and ATM withdrawals. There is no fee for this service.

Discover Customer Service

You access customer service by toll-free phone 24 hours a day, seven days per week. Discover also has an extensive FAQs section that will answer most of your questions online.

The first $250 in check deposits (mobile or mail) will be available the next business day. The remainder is typically available within two business days. ACH and wire transfers initiated at an external bank are available on the same business day funds are received.

Accessing Your Discover Cashback Debit Account

You can access your debit account through any of the following methods:

1. ATM
2. Writing a check
3. Use your debit card anywhere the Discover, Diners Club International, or Pulse logos appear.
4. Choose additional cash over purchases when using the debit card at participating retailers.
5. Online transfers to an external bank account
6. Making payments using online bill pay
7. Request an official bank check.
8. By wire transfer

ACH transfers from your Discover account are usually available 4 business days from the transfer request date.

Discover Cashback Debit Account Fees

As noted above, Discover Cashback Debit Accounts have no monthly maintenance fee. There is also no fee for use at any of the more than 60,000 in-network ATMs nationwide. Discover Cashback Debit Accounts do have the following fees for a non-typical transaction:

• Outgoing wire transfer, $30

Other services with no fee include:

• Deposited item return
• Stop payment
• Insufficient funds
• Debit card replacement
• Ordering standard checks
• Online bill pay
• Account closure
• Incoming wire transfers
• Official bank checks
• Paper copy of check or deposit item
• Fees for use of an out-of-network ATM (though the owner of the ATM may charge a fee)

What Discover Cashback Debit Offers that Other Banks Don’t

Discover is unique among major banks in offering cashback rewards on debit card purchases. This is particularly true in combination with no required minimum deposit or balance, no monthly maintenance fee, and an absence of many of the fees typically charged with bank checking accounts

Otherwise, PayPal offers 1% cash back on purchases with their debit card. However, PayPal isn’t a checking account; it charges 3% or more fees for incoming deposits.

Now, some banks pay interest on their checking accounts. But at a high-end interest rate of 1.5%, you’d have an average monthly checking account balance of $24,000 to get the $360 you can earn in cash-back debit purchases with Discover.

There’s no question, this is one of the better checking account choices available. It’s especially good for consumers who are frequent debit card users, and don’t want their cash back rewards offset by bank fees. Discover Cashback Debit has no fees that can’t be easily avoided, so the cashback offer is pure play.

Meanwhile, you can also transfer your debit account cashback balance to your Discover Card. That will allow you to seriously supercharge your total cashback on that card (Discover it® Cash Back pays up to 5% on select purchases and 1% on everything else).

How to Sign Up for Discover Cashback Debit

The entire account application process takes place online. You start by providing your physical address, phone number, email, Social Security number, or other taxpayer ID. You can even apply for the card without impacting your credit score.

Checks and debit cards can be ordered online or by phone and are typically received within 10 days of opening your account. Upon receipt of your debit card, you must activate it and set up a personal identification number (PIN). You can do this either online or by phone.

Once your account has been opened, you can fund it for up to 45 days. You must complete a new application if funds are not received within 45 days.

There are five ways you can make deposits:

• By direct deposit
• Online transfer from another bank account
• By Mobile Check Deposit from the Mobile App
• Add cash to your account using your contact list debit card at any Walmart store, with no fees.
• Mailing a check to Discover Ban, PO Box 30417, Salt Lake City, UT 84130

Pros and Cons of Discover Cashback Debit

Pros

• 1% cash back on debit card purchases of up to $3,000 per month ($30 in cashback)
• No minimum initial deposit or account balance requirement
• Access your account fee-free at more than 60,000 ATMs
• No monthly fees on your account or fees for replacement debit card or check reorder
• Availability of high-interest savings, money market, and CDs through Discover Bank

Cons

• No interest is paid on your checking account balance
• No physical bank branch locations
• You can’t deposit cash in your account
• You are only permitted to have one Cashback Debit Account

Discover Cashback Debit Alternatives

Axos Bank CashBack Checking

Axos Bank CashBack Checking pays 1% cash back with its signature-based debit card purchases. You can earn up to $2,000 monthly in cashback, but you must maintain a minimum average daily collected balance of $1,500 to be eligible for the cashback rewards. The account requires $50 to open and can check your credit score. There are no monthly maintenance fees and unlimited domestic ATM fee reimbursements.

Bank of America Debit Card

Bank of America Debit Card offers rewards, but they don’t come about quite as easily as the Discover Cashback Debit card or the other alternatives we’re presenting. Instead, you’re allowed to participate in BankAmeriDeals. They enable you to earn cash back on deals you choose when you pay with your eligible debit or credit card. The bad news is that the rewards are eligible only from participating merchants and service providers, but the good news is that those rewards can go into double digits.

Bank of America Debit Card offers online and mobile banking with Bank of America checking accounts. The card also has a round-up capability, enabling you to save money by accumulating the change from rounded-up purchase amounts.

Upgrade Rewards Checking Plus

Upgrade Rewards Checking Plus pays up to 2% cash back on purchases of common everyday expenses, recurring payments, and subscriptions and unlimited 1% cash back on all other purchases. To get the benefit of 2% cash back, your checking account must have a minimum of $1,000 in monthly direct deposits; otherwise, your debit card will receive only 1% cash back.

There are no monthly fees, and the account reimburses out-of-network ATM fees.

Frequently Asked Questions (FAQ)

Should You Open a Discover Cashback Debit Account?

In one word, yes! At least if you’re a frequent debit card user and like the idea of a fee-free checking account. You can still access a free checking account even if you don’t frequently use your debit card.

A Discover Cashback Debit Account may not be attractive to someone who typically maintains a high checking account balance and is more interested in a high-yield checking account. That will be even more true if you don’t use your debit card frequently.

But for everyone else, it’s an excellent way to get free checking with the ability to earn 1% cash back on debit purchases through normal spending activity.

For example, if you make at least $3,000 in debit card purchases each month and earn the full $360 cashback for the year, you will earn 36% interest on an average daily balance of $1,000 or 360% on an average daily balance of just $100.

Think of a Discover Cashback Debit Account as an opportunity for small savers to earn a super high rate of return on their money, driven completely by their spending activity. That’s one of the best deals available anywhere to most people.

Meanwhile, you’ll have access to Discover’s other products, including the Discover it® Credit Card and its high-yielding savings accounts, money markets, and certificates of deposit.

Discover Cashback Debit

Kevin Mercandante

Application Process

Rewards

Mobile App + Features

Fees

Customer Service

Summary

The Discover Cashback Debit Account offers a 1% cash-back rate without charging any monthly maintenance fees or requiring a minimum deposit

4.7

Open a Discover Cashback Debit Account