Like a Swiss Army knife, a credit card can contain several useful tools -- some you might not even know are there. Discover cards, for example, include a hidden benefit that could save you money when you need to access cash quickly.
Discover's hidden tool
Among cardholders and credit card industry experts alike, Discover cards are known for their simplicity, value and competitive cash-back rewards.
Discover cards also share a unique feature called Cash at Checkout, which differs substantially from a traditional credit card's cash-advance offer.
What's a cash advance, and why shouldn't I use one?
Most credit cards allow you to get a cash advance from an ATM, but this service comes at a steep cost.
For example, when using an ATM to access cash, the Discover it Cash Back* Card normally charges a cash-advance fee of either $10 or 5% of the amount of each cash advance, whichever is greater.
Additionally:
- You'll incur ATM fees.
- You'll be charged interest on the cash advance.
- The cash advance APR for the Discover it Cash Back is higher than its standard purchase APR.
- Interest begins accruing immediately, regardless of whether you pay your statement in full by the due date.
Because of these drawbacks, personal finance experts agree that you should always carry a debit card or extra cash for emergencies so that you never have to get a cash advance from your credit card.
However, Discover's little-known tool changes things
Although credit card cash advances should be avoided at all costs, there's actually a way to obtain cash from your Discover card with no additional charges.
Discover cards offer a feature called Cash at Checkout that's fairly self explanatory. When you use your card at eligible merchants, you can choose to receive cash during your transaction, at checkout. There are dozens of eligible merchants, including many national supermarket chains, drug stores, discount stores (dollar stores) and gas stations. You can find a complete list on Discover's website.
Best of all, there are no transaction fees and no ATM fees when you use the Discover card's Cash at Checkout feature. Plus, the standard purchase APR applies to the cash that you receive. And just like any other purchase, the interest charges can be waived when you pay your entire statement balance before the due date. However, you're limited to getting $120 through Cash at Checkout during a 24-hour period.
How to check which perks your cards have
To find out what perks your card comes with, visit the card's landing page on the card issuer's website. You can also request a copy of the card's guide to benefits, which lists the details of all of the perks and benefits that your card offers.
You will typically receive this document with your new card, and many card issuers also offer this document online. But if you can't locate a copy of it, most card issuers will mail you a copy at your request.
*All information about the Discover it Cash Back Card has been collected independently by CNET and has not been reviewed by the issuer.
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