Discover Gas Card Limiting Cash Rewards
Is it me or have many of the 5% cash back credit cards begun to scale back their promotional offers? First, AT&T Universal Cash Rewards gets shut down (many of their customers never received the letter). Then, Citi Dividend Platinum Select decides to end the 5% promotion (I never got that letter) and scaling it down. Now the Discover Open Road Card, which offers 5% on gas and automobile related purchases, will be reducing their rewards as well. Now, the Discover Gas Card will only return 5% for the first $1,200 in gas and automobile purchases and 1% thereafter.
So, it’s not as drastic as the AT&T Universal Cash Rewards (card terminated) or the Citi Dividend Platinum Select (card offers completely revamped), but you now are limited in how much of a reward you’ll be able to get.
So what options do you have now if you want to get 5% cash back on gasoline? Well the Discover Gas Card is still a good option but you might want to get the Citi Driver’s Edge Card which will get you 6% at supermarkets, drugstores, and gas stations for a year (3% after) plus other automobile related perks (like $1 per 100 miles driven).
Revised Terms and Conditions (from the application):
REWARDS: Earn unlimited cash rewards on all purchases. Earn a full 5% Cashback Bonus on your first $1,200 in annual gas and auto maintenance purchases. In addition, earn a full 1% on all other purchases after your total annual purchases (including gas and auto maintenance) exceed $3,000; other purchases that are part of your first $1,500 earn .25% and other purchases that are part of your second $1,500 earn .50%. Combined gas and auto maintenance purchases in excess of $1,200 earn Cashback Bonus at the same rate as other purchases.
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Tags: 5% Cashback, Cars, Discover Open Road, Gasoline
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6 Comments - Share Your Thoughts
The Discover Gas card has always had this cap of $1200, or $60 in rewards, which is why I never used the card unless I capped out all my other gas reward cards.
Here is the best option currently for gas, groceries and drug-store purchases since Citi change the reward structure of its cards. This card gives 5% on all these type of purchase with an annual cap of $500. One downside of this card is that rewards are distrubuted once a year.
http://www.directrewardscard.com/
My Chase Rewards Visa is still offering 5% back on gas and grocery purchases (up to a limit of $300 per year, I believe).
Take $40 out of your ATM and get your gas at the cash only Excel station on Taylor Avenue, which saves you a few cents per gallon because they don’t have to pay any credit card service fees. Likewise for buying a chunk of your groceries at any of the local farmer’s markets.
[...] In the same vein, Blueprint for Financial Prosperity shows that the Discover Gas Card is also limiting its rewards program. [...]
The letter I got was not with the statement, but a separate letter. After the downgraded reward program takes effect next Friday, I will switch to my Chase card for 3% cashback on gas, not great but better than the 2% from Citi.
[...] Blueprint for Financial Prosperity mentions that the Discover Gas Card is limiting its cash rewards and describes some alternatives. [...]
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