Discover advertises its cashback reward program as starting from the first dollar spent. While this is true for the Discover "It" card, it is NOT true for the millions of Discover customers who have a Discover "More" card. They must spend $3000, for which there is literally a $0 cash reward, before they start receiving "cash back". Discover has made no attempt to either differentiate between the two cards in their advertising, or advise its "More" customers that they need a new card to get the new benefit.
Discover has purposely chosen to NOT update its massive legacy "More" customer base to the "It" standard of cashback benefit. This is simply another example of a "shareholder value" company screwing over its customer base, to maximize its return.
SALT LAKE CITY, UTAH -- Discover Card will forfeit your CashBack reward if you close your account prior to redemption. I closed my account on March 24, 2006 and faxed Discover Card a letter to confirm my account closure. I further directed Discover Card to apply my CashBack award to my outstanding balance. I received a letter from Discover Card on April 1, 2006 and the letter stated "that I forfeit my CashBack award when I close the account... This is clearly stated in the cardholder agreement".
I respond back to Discover Card, via written faxed letter, and demand they apply my CashBack award to my account balance because the money is mine and I have earned it. I directed Discover Card to take the following steps and I stated in my letter to Discover "I could not understand why they did not do these steps in the first place". I directed Discover Card to: 1) Re-open my account; 2) Apply the CashBack reward, as the account is now "open"; 3) Re-close the account.
I received a check from Discover Card CashBack rewards for $180.00 in the mail yesterday even though Discover Card previously told me I was not entitled to the reward and had forfeited the amount when I closed my account. Do not let Discover Card steal from you and rip you off with their "Cardholder Agreement" forfeiture BS because the reward is yours and you are entitled to it. Persistence paid and I caught Discover Card in their rip off tricks. I thought one-step ahead of them so "it pays to Discover", persist and be informed.
My advice to anyone who is wishing to no longer do business with Discover Card and close your account, redeem your CashBack reward before you close the account. You can go online to Discover's website and redeem your CashBack reward. If you close the account and then want to claim your reward, then do what I did, as mentioned above, and do not allow Discover to mislead you into forfeiting the reward and lining their golden pockets.
After all, per their Cardholder Agreement, they can change and/or amend the account terms at anytime so use this in your favor and throw this clause back in their face. Discover likes to remind the cardholders of this clause all the time so they can exploit their cardholders. Make Discover Card “change the account terms” in your favor and send you a check for your reward even though the account is closed and you “allegedly” forfeited the reward by closing the account.
RIVERWOODS, ILLINOIS -- Discover Card users, please do not believe in your Discover Card 5% cash back reward program. I just called customer relations to check on my cash back rebates on all the charges I booked through that card and just found out that they don't consider a lot of charges that should deserve 5% cash back.
For example, hotels booked through travel agency sites such as Priceline, Expedia, Travelocity are not eligible for 5% cash back, hotel must be directly booked through the hotels themselves in order to be considered for 5% cash back. They do not consider Target, Sears etc as department stores, they consider them as discount stores and are therefore not eligible for 5% cash back even though any normal person would consider them as department stores.
Any smart shoppers out there, please do not get lured into applying for Discover Card by thinking that you can get all these bogus 5% cash back they advertise. Worst of all, they don't even disclose all these restriction upfront in a small print somewhere until you make all your purchases through their card and start wondering how come your cash back reward is still so small.
UPLAND, CALIFORNIA -- I had been a member since 1994. I have always paid my bill off in full and have never missed a payment nor had I ever been late. There was one fraudulent charge of about $400 which was clearly not by me. Discover knew it was not me, but would not cover my charges because I did not want to have to go to the police station to file a report. They made me feel more like the criminal than the victim. They continued to question me and pressure me.
Then when I closed my account they would not let me cash out or use my $127 dollars that I had in my cash back bonus award. I used to be very happy with Discover and recommend it to other people. Now I am very disappointed and would not recommend or use Discover again.
Discover touts its Cashback bonus as an "up to 1%" reward on all purchases. They conceal or obfuscate the terms of this program. The 1% terms do not begin until you have over $3000 in purchases for the year. Each anniversary you start at a tier level earning 1/4% on the first $1500 of purchases and 1/2% on the next $1500. The statements sent by the company do not clearly reflect the cashback compensation, but you must try to figure out their math yourself.
My problem is that nowhere on the Discover website can you find this information. From their wording or juxtaposition of words, they give the impression you get 1% on all purchases and their literature indicated you can get 2% cashback (by redeeming your money for selected gift certificates). I got this information from a third party source on the internet rating credit cards.
I just consider it unethical to hide the real terms of this program so that a consumer has to dig to get accurate information on their product. Having found out these hidden terms, I'll be less likely to use this card than if they were clear and upfront about their program. Caveat emptor.
In the past, Discover Card would allow its customers to redeem the full amount of their cashback bonus. Now, I've learned that I can only redeem in $50 increments. It didn't make sense until I realized that Discover can collect interest on the amount of money that they claim is part of their cashback bonus program.
This means that if you have $195 in cashback bonuses, you can only redeem $150 and discover can collect interest on the remaining $45 until you redeem again. Multiply this by all of the Discover customers and this amounts to a huge profit for Discover card. There is no end to Discover's ability to accrue interest unless you happen to have a cashback bonus that is in $50 increments and you decide to cash it in. Does anyone else have thoughts on this?
HENDERSON, NEVADA -- On October 7, 2007 I accepted an offer for a $25.00 dollar gift card to RED LOBSTER restaurants for $20.00 out of my cash back bonus on my Discover Card. Sounds like a good deal, right? Well it is now April 28, 2008 and I have not yet received said gift card and they will not put my $20.00 back into my bonus plan. Can you say RIPOFF! If anyone gets a call with such an offer just tell them to give you the CASH!!