Discover Doubles Down On Cash Rewards

Discover is luring new customers by boosting its rewards program for those who apply for a Discover it card by July 31, the company announced in a June 1 press release. The Illinois-based credit card provider has offered to double the cash rewards its new cardmembers would earn at the end of their first year. The deal is further sweetened with no limit or expiration.

“This is a great way for new cardmembers to test drive Discover and experience the generous rewards,” said Ryan Scully, vice president of marketing at Discover.

This latest perk follows several new features which debuted earlier this year.

In April, Discover rolled out Freeze It, a tool that allows cardmembers to freeze their accounts in the event of a misplaced card, helping avoid any fraudulent activity. Starting last year, Discover cardholders can also view their FICO credit scores along with their monthly statements.

In January of this year, the company’s profit took a hit in an attempt to amend the reward program which allows users to redeem points for cash. In a regulatory filing in November, Discover announced that the removal of thresholds of points redemption cost $178 million. That regulatory filing involved removing thresholds for allowing customers to redeem points, and would no longer strip cardholders of rewards if they’re delinquent in paying or their account is closed or inactive. CEO David Nelms said during the third-quarter earnings call that the changes would raise the cost of rewards to about 1.17 percent, up from just under 1 percent of sales volume.

In November of last year, Discover launched an array of cashback rewards redemption options including applying rewards to users’ statement balance, depositing rewards directly into bank accounts, shopping online and making charitable donations.

The company clarified that it prioritizes security above all else, which was part of the reason why it was the one of the last among major credit card banks to collaborate with Apple Pay.

“As the mobile payments landscape matures, Discover remains committed to giving cardmembers secure options for using their cards and mobile devices,” noted Diane Offereins, Discover’s president of payment services, at the time of the announcement.

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