Posted by Chuck on May 21, 2017
Credit Cards

Published on May 21st, 2017 | by Chuck


Issue with Earning 5% at with Discover

Numerous Reddit members noticed that their purchases on the Discover IT card are no longer showing up as Wholesale Clubs and earning 5%, as per the Q2 2017 category. Since around April 20, they’ve been showing as Merchandise and not earning 5%. Other wholesale clubs like Sam’s are not effected.

Discover is apparently aware of the issue and trying to fix, but it’s worth the headsup to make sure you get credited the cash back. Personally, I’d notate on my calendar to check back in a month with the hopes that it’ll self-correct. Others had success chatting and getting an adjustment right away.

Addendum: A reader notes that is also coming through wrong and not automatically triggering 5% on Discover IT as part of Home Improvement.

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Where does Costco take Discover? Online?


Called in and also sent SM about this. Both times (live person and SM response) confirmed that purchases were eligible for the 5% bonus, but it would have to be adjusted on next statement cycle.

anyone happened to know using discover to pay for liquor in the store next to costco will earn 5% cb?

i know chase did give 5% cb on the freedom when it had the warehouse last quarter

I’ve had the issue and chat resolved.

I noticed that too. I will have to IM. But I also had it happen with an order from It coded as ” DIRECT MARKETING – CATALOG MERCHANT” not “home improvement.” As another data point, I also had a charge from, which did code as “home improvement”

See also Fat Wallet posts after April 9th

I had a chat with Discover a few minutes ago…I was told “Just because a transaction is posted as Merchandise…doesn’t mean you will not earn 5% on that transaction. Please reach out to us if you do not see the 5% post within 2 billing cycles”

Waiting for Godot
Waiting for Godot

Yeah, this is typical chat rep jargon to get you off their back. While it’s MOST LIKELY Discover will pay back, I have had Chase portal purchases not take into effect (even after complaints and waiting). I just stop shopping with their card. Too many other cards with correctly posting rewards.

Sent SM last night, got a reply saying it’s​ fixed and will show on the next bill by the time I gor home from work.

What are the whole sale clubs included in the 5% offer. Does it include Sams club, walmart etc?

Just had a $800 purchase of Costco cash cards post today and despite it being listed as “merchandise” it’s showing $40 earned on my enrolled offers/earned page. Here’s what’s listed under the transaction if anyone is curious:

WWW COSTCO COM 800-955-2292 WA

I made a $1500 purchase at in the end of April (also the end of my billing cycle), and it didn’t count towards the 5% cashback, and all I got was $15 on my May statement.
So, I called in, and they said it didn’t count because it was towards the end of my statement cycle and that it would be fixed in my June statement.

And the June statement came out, but still nothing.
So I called in today, and they said the wholesale clubs not counting towards 5% is a known issue with HQ.
As for my cashback, they could not adjust it today since the promotional period is still going on and the promotion will end on June 30.
They said they will adjust it on July 1st and it should show hopefully show up on my July statement.

They haven’t fixed it. the blame costco for coding differently.

Hi, do we know if this is fixed? Saw comments stating both fixed and not fixed.

I had this problem with a purchase at beginning of May, posted as “Merchandise” and full 5% reward amount did not appear on the early May or early June statements. I sent secure messages pointing out the problem but was told I had to wait 2 billing cycles before they would start an inquiry. So messaged again after the 2nd billing cycle (early June), the CSR said he added the remaining 5% reward amount and I would see it once the next billing statement cycles (i.e., wait until early July). No mention of the fact that this is an ongoing problem with

I have not bought anything at since that problem transaction in early May, but I plan to purchase more cash cards this month before the 5% categories change. Just hope they code correctly this time…

It coded as Merchadise but I got the 5% cashback anyway

I wonder if it means that whenever Wholesale clubs come back again Costco won’t work. That makes this card much less valuable to me, especially after 1st yr when it will be only 1% for most.

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