Rakuten, one of the most popular cash-back shopping platforms, has just announced the Rakuten American Express® Card, a cash-back credit card with no annual fee and an enticing rewards rate:
10% cash back on Rakuten Dining (this includes the 5% you receive as a Rakuten member)
4% cash back on Rakuten purchases on up to $7,000 each calendar year (this is on top of any other cash back you may receive by shopping through the Rakuten platform)
2% cash back on groceries and other restaurants
1% cash back on all other eligible purchases
The Rakuten Amex Card has just barely been announced, so there are still some fine details to learn about and consider, such as how your cash-back rewards can be redeemed. However, at a glance, it seems like a decent credit card for Rakuten members (free to join).
Let’s break down some of the benefits that we know about, as well as some potential perks.
The Rakuten Amex credit card has no annual fee, making it an affordable option for people who regularly use Rakuten.
Related: Best credit cards with no annual fee
The Rakuten Amex Card offers:
10% cash back on Rakuten Dining (this includes the 5% you receive as a Rakuten member)
4% cash back on Rakuten purchases on up to $7,000 each calendar year (this is on top of any other cash back you may receive by shopping through the Rakuten platform)
2% cash back on groceries and other restaurants
1% cash back on all other eligible purchases
For most people, the most significant part of this rewards rate will be earning an additional 4% back on Rakuten purchases, up to the $7,000 calendar year spending limit. If you already use Rakuten, that’s an extra 4% cash back ($280) you could be earning each year on your eligible purchases. Even better, that’s all on top of what you may already earn through the platform itself.
For example, if a retailer is offering 15% cash back through Rakuten, you could earn that 15% plus another 4% from this credit card, for a whopping 19% cash back.
Note that you can also earn a $25 welcome bonus after spending $500 in the first 90 days. That’s very low compared to similar cash-back credit cards.
The Rakuten Amex Card will run on the American Express credit card network (powered by Imprint), providing cardholders with access to Amex Offers, Amex Experiences, and some retail protections, such as purchase protection and extended warranty coverage. While these benefits aren’t groundbreaking, they can certainly be useful.
It’s not entirely certain yet how cardholders can redeem their cash-back rewards, but we can speculate. Rakuten currently offers these cash-back redemption options to its members:
The Amex Membership Rewards redemption option on Rakuten has long been a bit of a secret or an appealing way to earn Amex points without necessarily using American Express credit cards (you still need to link an American Express card that earns Membership Rewards for this redemption option, but you don’t need to use that card to make your Rakuten purchases). If this is a redemption option for cash back earned with the Rakuten Amex Card, it would serve to make the card all the more attractive for many people.
If the Rakuten Amex Card doesn’t make sense to you, consider these cash-back card alternatives.
Founded in 1999, Rakuten is a primarily online cash-back shopping platform. You can use Rakuten to earn cash back from your online and certain in-store shopping purchases. You don’t need to change much about your shopping experience, just use the Rakuten platform to start your online shopping trip or link your credit cards for an in-store trip, and then earn cash back on eligible purchases.
Rakuten is free to join. The company makes money by bringing customers to different retailers, so it’s not like you’re paying more to use Rakuten; it’s the retailers who are footing the bill. Having personally used Rakuten for many years, I find it’s an easy and convenient way to get a slight discount on many of my online purchases. In some cases, it’s an excellent way to earn loads of cash back or American Express Membership Rewards points.
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