Q2: Get 5 percent cash back at home improvement stores & wholesale clubs with Discover

If you’re remodeling or buying new furniture in Q2 2017 — and frequently shop at wholesale clubs — Discover’s bonus categories for Q2 could be big for you. And don’t forget — enrollment begins March 1.

April through June 2017, you can earn 5 percent cash back (on up to $1,500 in spending) in the following categories:

Discover Q2 (2017) bonus categories

CategoryDetails
Home improvement storesHome improvement retail stores, lumber/building material stores, paint/wallpaper stores, hardware stores and lawn and garden supply centers
Wholesale clubsIncludes Sam's Club, BJ's (Discover not accepted at Costco). Certain goods and services (such as travel services) may not be eligible.

While rotating-category cards (like the Discover it and Chase Freedom) are giving way to flat-rate rewards cards (like the Chase Freedom Unlimited and Well’s Fargo’s Cash Wise card), big-ticket categories like these are why some consumers still like their old-school quarterly-bonus cards. Have a planned furniture purchase or renovations you’ve been putting off? It should be easy to max out Discover’s Q2 category on home improvements alone. Large grocery purchases at warehouse stores will help you hit the $1,500 quarterly cap if you don’t spend quite enough on the new sofa or kitchen remodel.

Discover’s Q2 categories are therefore stronger than Q1’s (ground transit, gas and wholesale clubs) because small, piecemeal expenses like subway tickets and gas may not be enough to hit the $1,500 mark.

The repeat of warehouse clubs in Q2 also represents the continuation of a rewards-card trend that started last year — cards competing aggressively in this category. Costco changing its card-acceptance rules (and its sloppy transition to a new co-branded card) opened up the playing field for issuers wanting a piece of the wholesale pie.

Important detail: Discover does not enroll you automatically in its categories — you must enroll via Discover’s app or via online banking to get 5 percent cash back. It also does not reward bonus cash back retroactively; if you haven’t yet enrolled and make a home-improvement or wholesale-club purchase in April, you’ll get only 1 percent cash back. To avoid missing out on 5 percent, enroll as soon as you can (beginning March 1).

For comparison, Chase and Citi also have rotating-category cards offering 5 percent cash back. Their Q2 2017 bonus categories are as follows:

Chase Freedom

  • Grocery stores
  • Drugstores

Citi Dividend

  • Fitness clubs
  • Drugstores

Thinking of applying for the Discover it card for its Q2 categories? Make sure it’s the best fit for you by comparing other cash-back credit cards.

 
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