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Discover Q1 2026: Easy $75 Bonus Cash Back on Groceries, Wholesale Clubs & Streaming
July 1, 2025
Discover just announced its Q1 2026 rotating categories and they're perfectly timed for anyone planning to save money by cooking at home in the new year. From January 1 through March 31, 2026, Discover it® cardholders can earn 5% cash back on grocery stores, wholesale clubs, and select streaming services.
What's Earning 5% Back in Q1 2026
Eligible Cards
Discover It Cash Back Credit Card
[[ SINGLE_CARD * {"id": "821", "isExpanded": "false", "bestForCategoryId": "15", "bestForText": "Cash Back Seekers", "headerHint": "$0 Annual Fee"} ]]
Discover It® Student Cash Back
[[ SINGLE_CARD * {"id": "830", "isExpanded": "false", "bestForCategoryId": "15", "bestForText": "Students", "headerHint": "Cashback for Students"} ]]
NHL Discover it
[[ SINGLE_CARD * {"id": "1343", "isExpanded": "false", "bestForCategoryId": "15", "bestForText": "Hockey Fans", "headerHint": "Cashback for Hockey Fans"} ]]
The Categories:
- 🛒 Grocery stores
- 🏪 Wholesale clubs (where Discover is accepted)
- 📺 Select streaming services
The Fine Print:
- 5% back on up to $1,500 in combined spending across all three categories
- Activation required (don't forget this step!)
- 1% back on all other purchases
- Offer valid January 1 - March 31, 2026
Activation Required: Yes - activate now.
Category Breakdown: What Qualifies?
Grocery Stores
What Counts:
- Supermarkets
- Meat lockers
- Bakeries
- Smaller grocery stores
- Grocery delivery services
What Doesn't Count:
- Walmart purchases (earns 1% only)
- Target purchases (earns 1% only)
- Convenience stores
- Discount stores
Wholesale Clubs
What Counts:
- Sam's Club
- BJ's Wholesale Club
- Other wholesale clubs that accept Discover
What Doesn't Count:
- Costco (doesn't accept Discover cards)
- Wholesale club services (delivery, travel, cell phone plans)
- Individual merchants inside wholesale clubs
- Stand-alone stores within wholesale clubs
Gift Card Hack:
- Purchase Sam's Club gift cards during Q1 and use them later at Walmart or Walmart/Sam's gas stations to extend your 5% earnings
- Note: Sam's Club gas purchased directly at the pump may not code as wholesale club (buy a Sam's gift card first, then use it at the pump as a workaround)
Select Streaming Services
This category returns from Q1 2025. Qualifying services include:
- Music: Spotify, Apple Music, Amazon Music, Pandora, iHeartRadio, YouTube Music, SiriusXM
- Video: Netflix, Max, Paramount Plus, Disney+, Hulu, Apple TV, Amazon Prime Video, YouTube Premium, Peacock, Starz
- Other: Audible, MLB.TV, and more
Important: If your subscription is bundled with another product or billed by a third party, it may not qualify for bonus cash back.
Chase has also featured grocery stores in Q1 every year since 2022. If you have both the Discover and Chase Freedom Flex®, you may need to strategize which card to max out first based on your other card portfolio (like the Amex Blue Cash Preferred with its $6,000 annual grocery limit at 6%).
Smart Strategies to Extend Your 5% Rewards
Gift Card Purchases Count
One of the best-kept secrets: gift cards purchased at grocery stores and wholesale clubs earn the full 5% back. This means you can:
- Buy Visa/Mastercard gift cards at grocery stores during Q1
- Use those gift cards at stores that don't accept Discover (like Costco)
- Stock up on merchant gift cards for future purchases beyond March
Pro Tip: Purchase Sam's Club gift cards in Q1, then use them at Walmart or Walmart/Sam's gas stations year-round. This effectively turns your $1,500 Discover limit into ongoing savings.
Costco Workaround
Since Costco doesn't accept Discover (in-store or online), consider:
- Buy Visa or Mastercard gift cards at qualifying grocery stores with your Discover card (5% back)
- Use those gift cards at Costco
- Alternative: Use PayPal debit card for 5% back at Costco (up to $1,000/month spend limit)
Walmart: Location Matters
- ✅ Walmart Neighborhood Market = Codes as grocery (eligible for 5%)
- ❌ Walmart Supercenter = Codes as general merchandise (1% only)
Don't Forget: New Cardholders Get a Bonus
If you don't have a Discover it® yet, new cardholders get their cash back matched at the end of the first year. That means if you earn $75 in Q1, Discover will match it with another $75, effectively making your bonus categories worth 10% back in your first year.
New Cardholder Math:
- Earn $75 in Q1 from 5% categories
- Earn additional cash back throughout the year
- Discover matches 100% at year-end
- Double your rewards in Year 1
Discover also offers periodic gift card redemption bonuses where you can redeem rewards for gift cards at 5-20% discounts. This stacks with your cashback match in year one, potentially giving you even more value. Watch for:
- Apple gift cards at 10-20% bonus redemption
- Home improvement stores at 15-20% bonus redemption
- Amazon redemptions (occasionally get $15-20 Amazon credit per reward dollar)
The Bottom Line
Discover's Q1 2026 categories align perfectly with New Year's resolutions to cook at home more and cut unnecessary spending. If you're already using a Discover it® card, activate these categories as soon as they go live on January 1. If you don't have the card yet, the first-year cash back match makes it worth considering, especially if you spend heavily on groceries.
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Editorial Disclosure: Opinions expressed here are those of Kudos alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
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