Rakuten Amex Overview
The Rakuten American Express® Card offers a blend of Membership Rewards points and cash back. This combination provides cardholders with useful flexibility, especially when used alongside Rakuten’s shopping platform where earning potential increases quite a bit. However, if someone isn’t particularly interested in Membership Rewards, the card might not be as appealing. Card rating*: ⭐⭐⭐½
*Card ratings reflect the views of TPG editors and are not shaped by the issuers.
As I explored Rakuten American Express’s features, my excitement grew more than I expected. Initially, I thought this card might not align with my existing strategy since I’m more into cards that offer transferable points.
This card markets itself as a cash back option, but if you already possess a Membership Rewards card, you have the choice to earn points instead. I, for instance, hold both the American Express Platinum Card® and the American Express® Gold Card, allowing me to gather Membership Rewards points through Rakuten’s portal.
This suggests the card could fit well in my existing lineup, and others who earn Membership Rewards should consider it too. There are considerable bonus points up for grabs, especially for travel.
With no annual fee, individuals with a credit score of 670 or above generally have a good chance of approval.
Let’s delve further into what makes Rakuten Amex appealing.
All information regarding Rakuten American Express Card was independently gathered. The details provided here have not been confirmed by the issuer.
Pros and Cons of Rakuten Amex
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Rakuten Amex Welcome Benefits
New cardholders can earn a $100 cash back bonus after spending $1,000 within the first 90 days of opening their account.
Many no-annual-fee cards either lack welcome incentives or offer minimal ones, but Rakuten Amex’s bonus is noteworthy. It requires just about $333 in monthly spending, which most should find manageable.
First Electronic Bank issues this card, and it’s managed by Imprint for application processes.
The card isn’t officially backed by Amex, which means its rules differ slightly from traditional Amex cards. You might even manage to earn multiple Rakuten Amex Welcome Bonuses throughout your lifetime, without it affecting your typical Amex card limit.
Rakuten Amex Benefits
While the earning rate might be the main draw here, Rakuten Amex comes along with some nice extra perks. Typically, no-annual-fee cards offer fewer benefits, so any additional value is welcomed—especially if it goes beyond basic fraud protection.
Cardholders can take advantage of:
- Amex Benefits: The offers available through Amex provide bonus rewards at select merchants, which I already use with my other Amex cards. Having access to this with Rakuten Amex is a plus.
- Amex Experiences: Cardholders gain entry to unique events like concerts, sports, and theater shows.
- Retail Protection: If you face damage or theft within 90 days of purchase, you are covered.
- Extended Warranty Protection: This doubles the manufacturer’s warranty for up to a year.
It’s clear that Rakuten Amex is particularly beneficial for shopping, making the protections and warranty features valuable additions.
How to Earn Benefits with Rakuten Amex
Now, let’s focus on how benefits stack up. Here’s the basic earning structure:
- 10% cash back (or 10 points per dollar) with Rakuten Dining Partners
- 4% cash back (or 4 points per $1) through Rakuten Shopping Portal (1% cash back, or 1 point per dollar spent, applies to up to $7,000 annually)
- 2% cash back (or 2 points per dollar) at grocery stores and restaurants
- 1% cash back (or 1 point per dollar) on all other purchases
It’s important to know that earning points requires a Membership Rewards earning card, like the Amex Platinum or Amex Gold. Alternatively, the Blue Business® Plus Credit Card from American Express could be a no-annual-fee option for earning points.
Benefits from Rakuten Amex can be combined with rewards from Rakuten’s shopping portal.
Rakuten often provides significant bonuses, at times reaching 20% cash back (or 20 points per dollar). This means that making specified purchases could yield as much as 24% cash back (or 24 points per dollar) through Rakuten AmEx.
Hotel cards might average around 24 points per dollar, but their value tends to be lower than that of Membership Rewards points, which are estimated at 2 cents each by TPG.
Due to restrictions on Amex welcome bonuses, accumulating Membership Rewards points can be tough after tapping into those offers. Rakuten Amex effectively addresses this issue.
It’s not advisable to use this card for grocery or general dining unless at Rakuten Dining Partners, as there are likely better options available. Still, unless you’re planning to spend over $7,000 a year on the portal, I can’t really see significant downsides to using Rakuten Amex for your shopping needs.
Award Exchange/Transfer with Rakuten Amex
How you access rewards can vary based on your preferred method. If you opt for cash back, you can exchange rewards for gift cards or opt for quarterly payouts via check or PayPal.
If you decide to earn Membership Rewards points, they’ll transfer automatically to your account every three months, assuming you have at least 501 verified points.
These limitations can certainly be a hassle, but considering there’s no annual fee associated with Rakuten Amex and that the shopping portal is free, it’s somewhat acceptable.
Membership Rewards points can be redeemed in various ways including statement credits, cash back, gift cards, and even at Amazon checkouts. Additionally, you can transfer points to any of Amex’s 20 airline and hotel partners for greater value.
When points are transferred, TPG estimates they hold a value around 2 cents each. Although my favorite hotel brand, Hyatt, isn’t a transfer partner, I typically use my points for flights. For example, I transferred about 17,000 points to Air Canada last year for a trip from the Pacific Northwest to Vancouver.
Competing Cards to Consider
If Rakuten AmEx isn’t the right choice for you, here are some alternatives:
- No-annual-fee Amex options: The Blue Business Plus, which earns Membership Rewards points but may have a simpler earning structure than Rakuten Amex.
- Better options for grocery and restaurant spending: The Amex Gold offers 4 points for purchases at U.S. supermarkets and restaurants, carrying a $325 annual fee but includes statement credits that can help alleviate costs.
- Switch to Ultimate Rewards points: The Chase Sapphire Preferred® Card is recommended, allowing for bookings at Hyatt. This card also supports 13 transfer partners.
Explore our suggestions for the best cards for online shopping and dining for even more choices.
Is Rakuten Amex Worth It?
If you’re considering joining a membership rewards program, then Rakuten Amex is a solid option.
For those leaning toward cash back, it’s certainly beneficial, but you should weigh it against other cash back options before making a decision. This card necessitates having a Membership Rewards earning card, so it might not suit those new to the Amex space.
Conclusion
I’ve been working on improving my 5/24 status. Otherwise, I might have already applied for Rakuten Amex. With the right Rakuten offer, the potential to earn plenty of points per dollar spent is appealing, making it worthwhile for those who enjoy amassing Membership Rewards.
That $7,000 cap on bonuses through Rakuten Portal may be a bit limiting for high spenders, yet given that this is a no-annual-fee card, I don’t see it being a significant drawback. I definitely plan to apply for this card in the future to uncover more benefits.
