Discover vs. American Express: Which issuer is right for your next credit card?

American Express and Discover both offer a rewarding range of credit cards — with some big differences that set them apart.American Express has a broad catalog, including cash-back cards with some of the highest earning rates available today, premium travel rewards cards, and co-branded cards with multiple airlines and hotels. Discover, on the other hand, is more streamlined and focused on no annual fee cards with solid cash-back earnings.No matter your credit-building or rewards goals, there’s likely an American Express or Discover credit card that can help you get there. But before you decide, it’s important to know what exactly you can get with each one.Discover vs. American Express credit cardsAmerican ExpressDiscoverAnnual fee$0 – $895$0Welcome offerAs high as over 100K pointsFirst year Unlimited Cashback MatchRewards rateUp to 14xUp to 5%Added benefitsAmex Offers, extended warranty, purchase protection, car rental coverage, statement creditsNo foreign transaction fees, no late fee on your first missed payment, no penalty APRRecommended credit scoreGood to excellentPoor to excellentAnnual feeBecause American Express issues many credit card types, you’ll also find a range of annual fees. Amex does have some no annual fee cards, but it also has premium card options with annual fees above $500.By comparison, every Discover credit card has no annual fee. Discover has also waived foreign transaction fees on all of its cards.Winner: It’s a toss upIntroductory APRA card with a 0% intro APR can be a useful way to manage large purchases over time, but because Amex and Discover vary in how they structure these offers, the best choice depends on what kind of financing window you need.Amex 0% intro APR credit cards tend to offer shorter periods. Discover includes several cards with introductory 0% APR offers in its lineup; in fact, most of its cards include a promotional intro period on purchases and balance transfers. These windows are often longer than what Amex offers.Winner: DiscoverWelcome bonusAmex welcome bonus offers depend on the type of card you get. Cash-back cards may earn upwards of $200 after meeting spending requirements. Amex travel credit cards may offer hundreds of dollars in rewards value when you sign up and meet the spending requirement within a given amount of time. You’ll earn those travel rewards either as American Express Membership Rewards (Amex’s rewards program) points or for co-branded cards in the airline or hotel’s travel program currency.Discover offers the same sign-up bonus on all of its rewards credit cards. After your first year of card ownership, you’ll get a match from Discover worth all of the cash-back or miles you’ve earned over the entire year. If, for example, you earn a total $500 in cash rewards, you’ll get a $500 match for a $1,000 total in first-year cash back.Winner: It’s a toss upRewardsWhen it comes to credit card rewards categories, the best options depend on your spending. American Express rewards and Discover rewards vary greatly, so you’ll need to look at your most frequent purchases to determine the best for you.American Express cash-back credit card rewards are usually most valuable for U.S. supermarket spending. More common rewards categories include U.S. streaming services, U.S. gas stations, and other everyday purchases. Amex travel rewards credit cards (including co-branded cards) tend to focus more on high rewards for travel spending. However, many of these cards still earn elevated rates at restaurants, U.S. supermarkets, and other useful categories.Depending on the Discover card you choose, you may either earn a flat rewards rate on every purchase, boosted cash back on rotating quarterly bonus categories, or a flat rate at gas stations and restaurants (up to quarterly limits).Winner: American ExpressOther benefitsIf you’re seeking out great benefits, American Express has much more to offer between these two issuers. Many American Express cards — even those with no annual fee — come with benefits that can put money back into your pocket. Here are a few examples of benefits you’ll get with different Amex cards:Blue Cash Everyday® Card from American Express: Up to $84 back annually ($7 per month; with enrollment) in statement credits for an eligible auto-renewing Disney Bundle subscription, up to $180 back annually ($15 per month; with enrollment) in statement credits for auto-renewing Home Chef meal kit subscriptionsAmerican Express® Gold Card: Up to $120 in annual Uber Cash ($10 per month when you add your card to your Uber account), up to $84 annually ($7 per month; with enrollment) in statement credits for Dunkin’ purchases, up to $100 annually ($50 semi-annually; with enrollment) in statement credits each calendar year when you use your card at eligible U.S. Resy restaurants, up to $120 per year ($10 per month; with enrollment) in annual statement credits for eligible dining purchases with Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, or Five GuysHilton Honors American Express Surpass® Card: Complimentary Hilton Honors Gold status, up to $200 annually ($50 each quarter) in statement credits for eligible purchases made directly with Hilton properties, Free Night Reward after you spend $15,000 on eligible purchases in a calendar yearWith Discover, you generally won’t find any added benefits beyond security and fraud protection (which is standard among most credit card issuers, including American Express).Winner: American ExpressCredit scoreTo get approved for most American Express credit cards, you’ll need a good-to-excellent credit score. In FICO Score terms, that means at least a 670 and up to the 850 max.Discover offers a bit more flexibility. While you may need a more solid credit history to qualify for some of its highest-earning rewards cards, Discover also has secured credit cards and student credit cards available for people with less-than-great credit scores or no credit history.Both Amex and Discover allow you to check for preapproval online, so you can see which cards you may qualify for without a hard credit check.Winner: DiscoverSupport, customer satisfaction, and statsHere’s a look at a few data points to compare American Express and Discover.American ExpressDiscover2023 U.S. purchase volume$1,124 billion (Second-largest issuer by purchase volume)$218 billion (Sixth-largest issuer by purchase volume)2024 J.D. Power Credit Card Satisfaction StudyRanked 1stRanked 2ndApp reviews-Apple App Store: 4.9/5-Google Play store: 3.9/5-Apple App Store: 4.9/5-Google Play store: 4.5/5Contact options-Online chat through mobile/web account-Phone: 1-800-528-4800-Mail-Online chat through mobile/web account-Phone: 1-800-347-2683-MailWinner: American Express, with Discover close behindAmerican Express and Discover card acceptance ratesIf you had American Express or Discover cards in the past, you may already know their reputations for lower acceptance rates compared to other cards. There are a few reasons for that, including each bank's role in the payment process.Unlike many other issuers (Chase, Capital One, Wells Fargo, etc.), Amex and Discover are card networks as well as card issuers. You won’t find a Visa or Mastercard logo on these cards — they run on the Amex or Discover networks and are also issued by the respective banks.What does that mean? Here’s a rundown of the different responsibilities of issuers and networks:Credit card issuer: Banks that offer credit cards to cardholders and complete purchases made with those cards. Issuers determine your card rewards, most benefits, fees, credit limit, and other card details.Credit card network: Companies that facilitate and process transactions between merchants and cardholders. Card networks are responsible for interchange fees you may find from some retailers. In the U.S., Visa, Mastercard, American Express, and Discover are the four major networks.Because both Amex and Discover cards run on their own networks, they may have different acceptance rates than Visa and Mastercard credit cards. However, both are widely accepted in the U.S. and are increasing their presence worldwide:American Express: 99% of places in the U.S. that accept credit cards; 89 million locations worldwideDiscover: 99% of places that take credit card payments nationwide; 70 million merchants worldwideTip: While you may have no issue using your Amex or Discover card when traveling abroad, it’s smart to carry a Visa or Mastercard, as well as a debit card or cash option.Should I get an American Express card?American Express offers some of the most competitive cards on the market and adding one to your wallet will likely be a net win. Many Amex cards come with travel rewards and perks you won’t typically find with Discover, making them a strong pick if you’re hoping to cut costs on upcoming trips.You should be prepared for the trade-offs, though: Higher rewards rates and added benefits also tend to come with higher annual fees on Amex cards. Do the math to make sure you’ll get enough value back year-after-year to justify any annual fee charge.Here’s a look at some of today’s best American Express credit cards:Blue Cash Preferred® Card from American ExpressAnnual fee$0 intro annual fee for the first year, then $95.Welcome offerEarn a $250 statement credit after spending $3,000 in eligible purchases in the first 6 monthsIntroductory Purchases APR0% on purchases for 12 monthsOngoing Purchases APR19.49%-28.49% VariableIntroductory Balance Transfer APR0% on balance transfers for 12 monthsOngoing Balance Transfer APR19.49%-28.49% VariableRewards rate6% cash back at U.S. supermarkets (on up to $6,000 in eligible purchases annually, then earn 1%)6% cash back on select U.S. streaming subscriptions3% cash back on at eligible U.S. gas stations and on transit, including taxis/rideshare, parking, tolls, trains, buses, and more1% cash back on all other purchases*Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkoutBenefitsGenerous intro APR on purchases and balance transfersGet up to a $10 monthly statement credit after using your enrolled Blue Cash Preferred® Card for a subscription purchase, including a bundle subscription purchase, at disneyplus.com, hulu.com, or plus.espn.com U.S. websites (subject to auto-renewal)Split purchases of $100 or more into equal monthly installments with a fixed fee — select the purchase in your online account or the American Express® App to see your plan optionsLearn moreWhy we like it: Blue Cash Preferred is one of the most rewarding cash-back credit cards available today. Its rewards categories are focused on everyday spending, so whether you spend the bulk of your monthly budget at the supermarket, have a number of streaming services in your lineup, or often fill up the gas tank after carpools, you’ll be able to maximize this card. Plus, its annual fee (see rates & fees) is waived for the first year. Combined with the solid welcome bonus and a 0% APR offer, you can get a ton of first-year value — then continue to get a strong return on spending over time.Read our full review of the Blue Cash Preferred cardDelta SkyMiles® Platinum American Express CardAnnual fee$350Welcome offerEarn 60,000 bonus miles after you spend $3,000 in the first 6 monthsOngoing Purchases APR19.49%-28.49% VariableRewards rate3x miles on Delta purchases and purchases made directly with hotels2x miles at restaurants worldwide including takeout and delivery in the U.S., and at U.S. supermarkets1x miles on all other eligible purchasesBenefitsReceive a Companion Certificate on a main cabin round-trip flight to select destinations each year after renewal of your Card. Terms apply.Earn up to $10 in statement credits each month after using your Delta SkyMiles® Platinum American Express Card on U.S. rideshare purchases with select providers. Enrollment requiredCheck your first bag free on Delta flightsLearn moreWhy we like it: The Delta SkyMiles Platinum is one of the more expensive co-branded cards between Delta and Amex, but it has a lot to offer frequent Delta flyers in return. In addition to rewards that offer miles on travel and everyday spending, enjoy plenty of benefits when you fly. These include a faster path to Medallion status with Delta with an MQD Headstart and MQD Boost, up to $150 in statement credits for eligible Delta Stays bookings, up to $120 in rideshare statement credits annually ($10 per month) with eligible rideshare providers, access to the complimentary upgrade list, first checked bag free, and more.One of the card’s greatest assets, though, is the Annual Companion Certificate. Each year starting after your first card renewal, you’ll get one companion certificate (minus taxes and fees) to use on a Main Cabin round-trip flight to a domestic destination, the Caribbean, or Central America.Read more: Delta Gold vs. Delta Platinum — Which offers more savings?The Platinum Card® from American ExpressAnnual fee$895Welcome offerYou may be eligible for as high as 175,000 Membership Rewards® Points after spending $8,000 within the first 6 months (welcome offers vary and you may not be eligible for an offer); apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact (if you’re approved and choose to accept the Card, your score may be impacted)Ongoing Purchases APRSee Pay Over Time APRRewards rate5x points for flights booked directly with airlines or with American Express Travel® (up to $500,000 per calendar year)5x points on prepaid hotels booked with American Express Travel1x points on all other purchasesBenefitsGet up to $600 back in statement credits each year on prepaid Fine Hotels + Resorts or The Hotel Collection bookings with American Express Travel (up to $300 semi-annually; The Hotel Collection requires a minimum two-night stay)Get up to $400 in annual statement credits ($100 each quarter; enrollment required) for eligible purchases with Resy, including dining at Resy restaurantsEnjoy up to $200 in Uber Cash annually — that's $15 in Uber Cash for rides or Uber Eats orders each month, plus a bonus $20 in December (you must have the latest version of the Uber App downloaded and your eligible American Express Platinum Card must be a method of payment in your Uber account; Amex benefit may only be used in United States)Learn moreWhy we like it: The Platinum Card from Amex is loaded with benefits that can more than make up its high $895 annual fee (see rates & fees) for very frequent travelers. To name just a few, you’ll get up to $600 back in annual statement credits for eligible hotel bookings through Amex Travel, up to $200 in statement credits each calendar year toward incidental charges with your chosen airline, up to $200 in annual Uber Cash ($15 per month plus another $20 in December), Global Lounge Collection airport lounge access, statement credit toward an auto-renewing CLEAR Plus membership, and much more.While you enjoy those benefits, you’ll also earn rewards that maximize your frequent travel spending and, in the first year, a solid welcome bonus to put toward a future trip.Read more: The Platinum Card from American Express full review Should I get a Discover card?If you don’t have a strong credit history and you want to build up your score while earning rewards on your spending, a Discover card makes sense. You can use it to build credit while paying no annual fee and earn cash back or miles in rewards categories that work for your spending. Plus, the intro 0% APRs many Discover credit cards offer can help you get ahead of any existing debt or offer time to pay down a large, upcoming purchase.These are some top credit cards from Discover to consider:Discover it® Cash BackAnnual fee$0Welcome offerDiscover will automatically match all the cash back you’ve earned at the end of your first year, with no minimum spending requirement or maximum rewards capIntroductory APR0% intro APR on purchases and balance transfers for the first 15 months (17.74% to 26.74% variable APR after that; 3% intro balance transfer fee until March 10, 2026, then up to 5%)Purchase APR17.74% - 26.74% variableRewards rate5% cash back on everyday purchases at different places each quarter — including grocery stores, restaurants, gas stations, and more — up to the quarterly maximum1% unlimited cash back on all other purchasesBenefitsRedeem your rewards for cash at any timeGenerous intro APR for purchases and balance transfersLearn moreWhy we like it: Discover’s primary cash-back credit card option can make a great choice for everyday spending. The card’s 5% bonus categories rotate each quarter; through 2025, categories included Amazon, gas stations and EV charging stations, drug stores, and more. With the $1,500 quarterly cap, you can earn up to $300 in annual cash back in 5% categories — just remember to activate bonus rewards each quarter.Discover it Cash Back is also a great choice for a 0% APR card, since it offers a solid intro period for both new purchases and balance transfers. Finally, you’ll get even more value your first year with the Cashback Match program. Take the $300 you could earn by maxing out 5% categories, for example — with the match, you’ll double those cash rewards to $600 in your first year.Discover it® Secured Credit CardAnnual fee$0Welcome offerDiscover will automatically match all the cash back you’ve earned at the end of your first year, with no minimum spending requirement or maximum rewards capPurchase APR26.74% variableRewards rate2% cash back at gas stations and restaurants up to a combined $1,000 spent quarterly (1% after that)1% cash back on all other purchasesBenefitsNo credit score required to applyNo annual feeAfter 7 months, Discover will begin automatic monthly account reviews to see if you qualify to upgrade to an unsecured card and get your deposit backLearn moreWhy we like it: We like Discover’s secured credit card option because you can begin to earn cash-back rewards while you work to build credit. You may not get the highest-value rewards, but 2% cash back in common categories like gas stations and restaurants can quickly add up. If you max out the $1,000 quarterly combined spending, you could earn a total of $80 cash back each year.To open the card, you will need a security deposit of at least $200, which acts as your credit line. After just seven months though, Discover will automatically review your account each month to determine whether you’re eligible to upgrade to an unsecured credit card and get your deposit back.Read more: Discover it Secured full reviewDiscover it® MilesAnnual fee$0Welcome offerDiscover will automatically match all the miles you’ve earned at the end of your first year, with no minimum spending requirement or maximum rewards capIntroductory APR0% intro APR on purchases and balance transfers for the first 15 months (17.74% - 26.74% variable APR after that)Purchase APR17.74% - 26.74% variableRewards rate1.5x miles on every purchaseBenefitsNo minimum spend required to earn the welcome bonusTurn Miles into cash or redeem as a statement credit for travel purchases like hotels, rideshares, gas stations, restaurants, and moreLearn moreWhy we like it: Discover it Miles is the issuer’s version of a travel rewards credit card. For no annual fee, you’ll earn a flat 1.5x miles on everything you buy — not just on travel spending. You can redeem the miles you earn for cash or get statement credits toward travel purchases (rideshares, hotels, airfare, car rentals, etc.).Discover it Miles has a solid 0% APR intro offer for new purchases and balance transfers. And like other Discover cards, you’ll have the chance to double your miles at the end of the first year with the Discover Match bonus. If, for example, you make $10,000 in purchases over your first year and earn 15,000 miles, you’ll end the year with a total of 30,000 miles after the match.Read more: Discover it Miles full reviewShould you get an American Express or Discover card?Whether you choose an American Express or Discover card depends a lot on your goals and where you are in your credit journey.If you don’t have a strong credit history and you want to build up your score while earning some rewards on your spending, a Discover card is a great choice. You can use it to build credit, pay no annual fee, and earn cash back or miles in rewards categories that work for your spending. Plus, the intro 0% APRs many Discover credit cards offer can help you get ahead of any existing debt or offer you some time to pay down a large, upcoming purchase.American Express, by contrast, can make a better choice if you want to upgrade from your first credit card or you’re really focused on maximizing your spending. Many Amex cards offer travel rewards and benefits, so they can also make a better choice if you want to save on upcoming travel expenses. You should be prepared for the trade-offs, though: Higher rewards rates and added benefits also tend to come with higher annual fees on Amex cards. Do the math to make sure you’ll get enough value back year-after-year to justify any annual fee charge.Before you decide, take time to compare each of the cards that may fit your goals and how you can best maximize your new card’s first-year perks and long-term value for your own spending.Should I have both Amex and Discover cards?It’s definitely possible to benefit from having both an Amex and a Discover card, depending on your goals. Discover’s no-annual-fee setup and longer 0% intro APR periods pair well with Amex’s rewards and travel perks. If you want simple cash back and a solid financing tool, Discover covers that side. But if you want rewards flexibility or travel value, Amex fills those gaps. Just make sure the cards you choose complement your spending habits and that you can comfortably manage more than one account.Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. 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