HOWTO earn reward points AND get cash back with no fees

I bank with a credit union which is outside my state.

There aren’t too many credit union ATMs around where I can withdraw cash without fees. Cash back from debit card payments are an option. But I’m wary of debit cards for the following reasons:

  • You are not protected against fraudulent purchases the same way a credit card protects
  • You don’t earn reward points which could be 1% to 5% depending upon the card and purchase category

Here’s a little known trick to get cash back AND reward points. Use Discover.

Cash from credit cards are a bad idea and you’ll be blind sided with fees. Discover has refreshingly decided to treat cash backs as regular purchases and your usual APR applies. No transaction fees, no cashback fee.

As long as you pay your balance in full, you don’t pay anything extra. And that’s exactly what you should do. Pay your balance in full and enjoy this short term interest-free loan!

And no, cash backs don’t count toward your rewards!

So what’s the catch?

  • Not all Discover cards have this feature. Check your card. Goto Customer Service .. My Card Account .. MyBenefits and look for “Get Cash Over your purchases”.
  • Not all stores qualify
  • Cash back from ATMs don’t qualify and you will be charged fees!

Here’s a list of stores that offer cash over purchases:


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