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Update: Frequent Miler reports Apple Pay has added “excludes gift cards” to this promotion. But I don’t know if they can enforce it. Please share in the comments if you receive 10% back for gift card purchases!
Are you ready to earn thousands of dollars in cash back?
Via Doctor of Credit, if you own an iPhone 6 or Apple Watch, and have the Discover it® Cash Back or Discover it® Miles card, you’ll earn an extra 10% bonus cash back when you use your Discover card with Apple Pay.
This offer runs from September 16, 2015, to December 31, 2015.
This is an incredible deal! I’ll show you how you can earn more than $2,000 in cash back before the end of the year.
How Does It Work?
Link: Discover it® Cash Back
Link: Discover it® Miles
Link: Apple Pay
Starting September 16, 2015, you’ll earn 10% bonus cash back when you use your Discover card in-store with Apple Pay.
You’ll earn the 10% cash back on up to $10,000 in purchases until December 31, 2015.
That’s on top of the usual 1% cash back (or 5% back in rotating quarterly bonus categories) you’ll earn with the Discover it Cash Back card. And the 1.5 miles per $1 (1.5% back) with the Discover it Miles!
Currently, when you’re approved for the Discover it Cash Back, you’ll receive a $50 bonus after your 1st purchase.
And new cardholders or folks who registered earlier this year will have their cash back DOUBLED at the end of 12 billing cycles.
So you’ll effectively earn:
- 22% cash back on regular purchases with the Discover it Cash Back (1% cash back + 10% bonus = 11%, doubled after 12 billing cycles)
- 23% back on regular purchases with the Discover it Miles card (1.5% back + 10% bonus = 11.5%, doubled after 12 billing cycles)
- 30% cash back on up to $1,500 in spending per quarter in bonus categories with the Discover it Cash Back card (5% cash back + 10% bonus = 15%, doubled after 12 billing cycles)
Make the Most of the Deal!
This deal is terrific and can put a lot of money in your pocket! Here’s why:
If you spend the full $10,000 by December 31, 2015, you’ll earn:
- $2,200 in cash back with your Discover it Cash Back ($10,000 in spending x 22%)
- $2,300 in cash back with your Discover it Miles card ($10,000 in spending x 23%)
- $2,440 in cash back if you spend $1,500 this quarter and next in Discover it Cash Back’s 5% bonus categories ($1,500 bonus x 2 x 30% = $900 PLUS $7,000 regular spending x 22% = $1,540 – TOTAL = $2,440)
The Discover it Cash Back bonus categories are home improvement stores, department stores, and Amazon this quarter (until September 31, 2015). Next quarter, it’s department stores, clothing stores, and Amazon.
Note: This deal is only valid for in-store purchases, so Amazon will NOT qualify.
Remember, you must use your Discover it Cash Back card with Apple Pay for the deal to work.
What’s Apple Pay?
Apple Pay is a touchless payment system you use with your iPhone or Apple Watch.
After you’ve loaded your credit card information into Apple Pay, you can pay for purchases at participating stores by holding your phone near the contactless reader at check-out.
Note: Only iPhone 6, iPhone 6 Plus, iPhone 6s, and iPhone 6s Plus phones work with Apple Pay. If you’re not sure which phone you have, find the model number on the back of your phone and refer to Apple’s website.
Apple Pay is accepted at lots of popular retailers, and the list is growing!
To make the most of the deal, folks might consider buying PIN-enabled gift cards to load to their AMEX prepaid account. Then use the funds to pay bills that can’t normally be paid with a credit card, like rent, loans, or utilities.
Some stores which accept Apple Pay and sell gift cards include:
- Office Depot
- Office Max
And many supermarkets on the list sell gift cards as well!
Even though you’ll pay a fee of ~$4 to $7 for each PIN-enabled gift card, you’ll still come out way ahead.
What If You Don’t Have an iPhone?
You’ll need a version of the iPhone 6 (or an Apple Watch) to use Apple Pay with Discover. And to add your Discover card to Apple Pay, you’ll have to upgrade the operating system to iOS9 (available September 16, 2015).
iPhones aren’t cheap! Apple sells the most inexpensive version for ~$549 + tax. But you can sometimes find cheaper used phones online.
Or your mobile carrier may have the option to purchase 1 at a reduced cost when you sign-up for a new contract.
Check out my full review of the card!
Discover will add 10% bonus cash back to a maximum of $10,000 in purchases from September 16, 2015, to December 31, 2015. That’s in addition to the regular cash back you’ll earn.
If you’re a new cardholder (or registered previously), your cash back is DOUBLED at the end of 12 billing cycles. So effectively you’ll earn:
- 22% cash back on regular purchases with the Discover it Cash Back card
- 23% cash back on regular purchases with the Discover it Miles card
- 30% cash back on up to $1,500 in spending per quarter in bonus categories with the Discover it Cash Back card
This is an INCREDIBLE deal!
If you’ve used Apple Pay, please share your experiences in the comments. Will you buy new iPhone to take advantage of this promotion?