Amex Cash Magnet vs. Discover it Cash Back Credit Card Comparison

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NOTE

As of Sept. 25, 2024, the American Express Cash Magnet® Card is no longer accepting applications, according to American Express. Existing cardholders can continue using their cards without any changes. American Express confirmed that current users will not be affected.

Both the American Express Cash Magnet® Card and the Discover it® Cash Back Card offer enticing cash back rewards and no annual fees, appealing to savvy spenders looking for value. However, if maximizing cash back on every purchase is your goal, the Amex Cash Magnet edges ahead with its unlimited 1.5% cash back. On the other hand, the Discover it Cash Back shines with its 5% cash back in rotating categories and the unique first-year cash back match, better for those who can take full advantage of the rewards.

Neither card is co-branded or a store card, ensuring their rewards are versatile. While the Discover card's rotating categories could be more lucrative, the consistent earning rate of the Amex Cash Magnet might be more straightforward for everyday spending.

American Express Cash Magnet® Card

Discover it® Cash Back Card

MoneyGeek Rating

3.8/ of 5

Rates & Fees

MoneyGeek Rating

3.8/ of 5

Rates & Fees

REVIEW & APPLY

On Issuer's Site

REVIEW & APPLY

On Issuer's Site

Regular APR
18.99% – 29.99% variable
18.49% - 27.49%variable
0% APR Offer
0% introductory APR for the first 15 months
0% for 15 months on purchases
Intro Offer
Earn $150 statement credit
Matches cash back at the end of your first year
Rewards Summary
Earn 1.5% cash back
Earn 1%–5% cash back
Balance Transfer Offer
0% introductory APR for the first 15 months
0% for 15 months on balance transfers
Balance Transfer Fee
Either $5 or 3% of the amount of each transfer, whichever is greater
3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)
Annual Fee
$0
$0
Recommended Credit
670–850 (Good to Excellent)
670–850 (good to excellent)
Penalty APR
29.99%
None
Not sure?
The Amex Cash Magnet and Discover it Cash Back both offer appealing rewards without an annual fee. The Amex Cash Magnet is better for those who prefer a straightforward, unlimited 1.5% cash back on all purchases. In contrast, the Discover it Cash Back excels with its 5% cash back in rotating categories, suitable for users who track and maximize category spending. While both cards have similar introductory APR offers, the Discover it Cash Back has a slightly lower regular APR range, which may benefit those who carry a balance.

Which Card Is Better for You?

You might prefer the Amex Cash Magnet if you value a straightforward rewards program with a flat cash back rate on all purchases. Its simplicity eliminates the need to track rotating categories, and the Amex Offers program can provide additional savings at select merchants.

You might prefer the Discover it Cash Back if you're adept at maximizing rewards in rotating categories and plan to use your card internationally. The absence of foreign transaction fees and the first-year cash back match can significantly boost your rewards, especially if you spend strategically in the bonus categories.

Head-to-Head Comparison: Card Details and Features

Evaluating APRs, fees, rewards and other features clarifies which card aligns with your financial habits. For instance, if you prefer consistent rewards, the Amex Cash Magnet's unlimited 1.5% cash back could appeal to you, whereas the Discover it Cash Back may be more attractive if you can maximize the 5% reward in rotating categories.

Regular APR: Discover it Cash Back

The Discover it Cash Back offers a more favorable regular APR range of 17.24% to 28.24%, compared to the Amex Cash Magnet's APR range of 19.24% to 29.99%.

Annual Fee: Tie

Both the Amex Cash Magnet and the Discover it Cash Back offer the benefit of no annual fee, making them equally attractive for users looking to save on yearly costs.

Introductory 0% APRs: Tie

Both the Amex Cash Magnet and the Discover it Cash Back offer a 0% introductory APR on purchases and balance transfers for 15 months, making them equally attractive for those looking to make a large purchase or transfer balances. The Amex Cash Magnet has a balance transfer fee of either $5 or 3% of the amount of each transfer, whichever is greater. The Discover it Cash Back has a 3% introductory balance transfer fee, which goes up to 5% on future balance transfers.

Rewards: Discover it Cash Back

The Discover it Cash Back is superior for maximizing cash back in rotating categories. It offers 5% back on up to $1,500 in combined purchases each quarter in categories like groceries and gas, then 1%. The Amex Cash Magnet provides a consistent 1.5% back on all purchases, which makes it appealing for its simplicity and unlimited earning potential. Both cards offer flexible redemption options, but the potential for higher rewards with Discover it Cash Back makes it the better choice for those willing to engage with its rotating categories.

Welcome Offers: Amex Cash Magnet

The Amex Cash Magnet offers a more valuable welcome bonus of a $150 statement credit after spending $1,000 in the first three months, compared to Discover it Cash Back's first-year cash back match. The return on investment of Amex Cash Magnet's offer is higher.

Recommended Credit Score: Tie

Both the Amex Cash Magnet and the Discover it Cash Back require a credit score range of 670 to 850, indicating they are equally accessible to individuals with good to excellent credit. There's no clear winner based on credit score requirements alone.

Penalties and Fees: Discover it Cash Back

The Discover it Cash Back is better for penalties and fees, offering no penalty APR and no foreign transaction fees. It also provides leniency on the first late payment fee. In contrast, the Amex Cash Magnet imposes a penalty APR of 29.99%, a foreign transaction fee of 2.7% and a late fee of up to $40.

Issuer Satisfaction: Amex Cash Magnet

When it comes to issuer satisfaction, the Amex Cash Magnet leads with a rating of 5.0 for American Express, which issues the card. Discover it Cash Back's issuer Discover Bank has a rating of 4.5. This indicates a higher level of satisfaction among cardholders with American Express National Bank.

Other Features & Perks: Tie

Both cards offer unique perks. The Amex Cash Magnet includes features like Plan It®, Car Rental Loss and Damage Insurance, Global Assist® Hotline and exclusive Amex Offers. Discover it Cash Back provides online data protection services. Depending on personal preferences, either card could enhance your spending experience.

Rewards Comparison

The Amex Cash Magnet maintains simplicity with an unlimited 1.5% cash back on all purchases. This flat rate is appealing for its ease of use and consistent return on spending. In contrast, the Discover it Cash Back card caters to the strategic spender with 5% cash back on rotating categories each quarter, up to a quarterly maximum, and 1% on other purchases. While the Discover card requires more engagement to maximize rewards, it can yield higher cash back in those bonus categories.

The Amex Cash Magnet provides a steady and uncomplicated rewards structure for those who prefer not to track rotating categories. However, the Discover it Cash Back's rotating categories can be particularly rewarding if your spending aligns with them. These categories are announced quarterly, and it's worth checking Discover's website to plan your spending accordingly.

The table below details the bonus categories for each card's rewards programs.

Category	Amex Cash Magnet	Discover it Cash Back
Quarterly Categories	N/A	5% for the first $1,500 quarterly/1% thereafter
All Other Purchases	1.5%	1%

Redeeming Rewards

Both the Amex Cash Magnet and Discover it Cash Back offer flexibility in redemption options. With the Amex Cash Magnet, you can redeem your cash back for statement credits, merchandise or gift cards. Your rewards do not expire.

Discover it Cash Back allows redemption for gift cards, donations, account credits and more. You also have the added option of direct deposit or using rewards at checkout with select retailers. However, while Discover's cash back does not expire, it will be forfeited if the account is inactive for 18 months.

Methodology

MoneyGeek reviews credit cards like the Amex Cash Magnet and Discover it Cash Back using a tailored scoring system for various use cases. In this comparison, each card's score reflects its best-performing category. Amex Cash Magnet leads in cash back rewards, and the Discover it Cash Back excels in balance transfer options.

The scoring for cash back considers factors such as reward rates and issuer satisfaction; for balance transfers, it's introductory APRs and regular APRs.

FAQ: Amex Cash Magnet vs. Discover it Cash Back

What are the cash back rewards for each card?

Amex Cash Magnet offers unlimited 1.5% cash back on all purchases, while Discover it Cash Back provides 5% back on rotating categories and 1% on other purchases. Discover also matches cash back in the first year.

Do either of the cards have an annual fee?

No, both the Amex Cash Magnet and Discover it Cash Back have no annual fee.

What are the introductory APR offers for these cards?

Both cards offer a 0% introductory APR on purchases for 15 months. Discover also provides this offer for balance transfers.

Are there foreign transaction fees for either card?

Amex Cash Magnet has a 2.7% foreign transaction fee, while Discover it Cash Back has no foreign transaction fee.

How do the cards compare in terms of credit requirements?

Both cards generally have a credit requirement of good to excellent, typically in the range of 670 to 850.

About Doug Milnes, CFA

Doug Milnes is a CFA charter holder with over 10 years of experience in corporate finance and the Head of Credit Cards at MoneyGeek. Formerly, he performed valuations for Duff and Phelps and financial planning and analysis for various companies. His analysis has been cited by U.S. News and World Report, The Hill, the Los Angeles Times, The New York Times and many other outlets.

Milnes holds a master’s degree in data science from Northwestern University. He geeks out on helping people feel on top of their credit card use, from managing debt to optimizing rewards.

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*Rates, fees or bonuses may vary or include specific stipulations. The content on this page is accurate as of the posting/last updated date; however, some of the offers mentioned may have expired. We recommend visiting the card issuer’s website for the most up-to-date information available.
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American Express Cash Magnet® Card vs. Discover it® Cash Back Card