Discover has announced that they have reduced the minimum gift card redemption to $5 from $25 and gift cards can now be redeemed in $5 increments. That’s a nice improvement that should make it easier to use up Discover cashback rewards.

Cardmembers will now be able to redeem gift cards for dollar amounts in $5 increments between $5 and $200. Previously, gift cards could only be redeemed in fixed values like $25 or $50. This is a nice improvement as it should enable you to redeem for an amount closer to the exact amount you need in most instances. Note that not all gift cards will start at $5, so this will vary some.

Overall, this is good news for those with Discover cards and particularly good news for good students who just claimed $20 in cash back since that could now instantly be redeemed for $20 in gift cards rather than needing to combine with other earnings.

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