Discover launched the first general-purpose cash-back card in the United States in 1986. The card was introduced by Sears, Roebuck and Co. and offered a rebate on eligible purchases, a feature that later became widespread across the industry.
Discover’s launch also emphasized no annual fee, which helped distinguish the product in a market then dominated by established bank-card networks. The company initially operated within Sears before becoming an independent financial-services business.
Cash back is usually calculated as a percentage of qualifying purchases, although rates and categories depend on the card agreement. It is different from a discount applied immediately at the register: the reward is commonly credited later as a statement credit, deposit, or other redemption.