Posted by Chuck on June 26, 2018
Checking Accounts

Published on June 26th, 2018 | by Chuck

16

Discover 1% Cashback Checking Adds Restriction for Cash Equivalents, Bank Funding, and Peer Payments

Last December, Discover introduced a new 1% cashback rewards offer for using the debit card associated with a Discover Cashback Checking account, up to $30 cashback per month. Today, Discover sent out an email indicating updated terms on the account (new terms can be found on this PDF). The new terms exclude certain transactions from earning cashback.

The following transactions are now excluded:

  • ATM transactions (I assume this was always the case)
  • The purchase of money orders or cash equivalents
  • Cash over portions of point-of-sale transactions
  • Loan payments
  • Prepaid card funding
  • Peer-to-Peer (P2P) payments are not eligible for cash back rewards
  • In addition, purchases made using third-party payment accounts (services such as Venmo and PayPal, who also provide P2P payments) may not be eligible for cash back rewards

Venmo allows using a debit card free for peer payments, and that’s now excluded. Loan payments via Plastiq or other bill payment services are excluded in the terms, as are prepaid card funding, and likely bank account funding.

No idea if these new restrictions are actually being actually enforced or not. Looks like tax payments are not excluded so that idea can still be used to turn a small profit. I’m sure there are still other possible plays as well.

 

Hat tip to ram16x on r/churning

[Post has been updated]



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JT
JT

Discover debit also hardcoded against WM MOs with this rollout as well.

whodidntante
whodidntante

It’s almost like they don’t want to give me money for nothing.

W
W

Weird

Wilson
Wilson

it’s almost like Discover doesn’t want to make money, assuming they collected more than a 1% processing fee, since customers will stop using the card with no incentive

Dan
Dan

discover debit never earned cashback for venmo peer to peer transactions. I tried it when it first came out

Gatrix
Gatrix

That is weird. I tried to send $2 last month via venmo. There were two debits (-$2 each) and one credit (+$2) finally posted on my account. And I got $0.04 bonus. I checked that “Peer-to-Peer (P2P) payments are not eligible” at that time. But I didn’t know why this happened. Never tried that since then.

Dan
Dan

Not really following… are you disputing what i said or not?

Max
Max

This language has been there from the start?

David
David

Meh, don’t care. When they got rid of Bill pay 10 cent rewards I stopped using billpay… and 1% for using a debit card is junk too.

Phill
Phill

+1….waste of MO’s and time as well. Although I certainly miss ST Delta debit card days.

brad
brad

Thought most of those terms were there from the start???

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