Credit card users on Rakuten now enjoy a larger rebate, with a 4% boost added to their shopping rewards.
The Rakuten American Express Card, a new offering from Rakuten, provides an exciting opportunity for frequent Rakuten users to earn cash back on their purchases. Here's what you need to know about this card:
Cash Back Rewards
The Rakuten American Express Card offers a variety of cash back rates on different spending categories:
- 4% cash back on Rakuten online or in-person purchases, up to $7,000 per calendar year (1% back after that).
- 5% cash back when dining at a Rakuten partner restaurant, in addition to the 5% Rakuten members earn with Rakuten dining, for a total of 10% cash back.
- 2% cash back on groceries and non-Rakuten dining.
- 1% cash back on all other non-Rakuten spending.
Cash back earned with the Rakuten American Express Card will accrue in the Rakuten Rewards Cash Back Account and be paid out every three months on Feb. 15, May 15, Aug. 15, and Nov. 15 of each year.
Additional Benefits
Cardholders of the Rakuten American Express Card get access to American Express network benefits like Amex Offers, which features bonus rewards and discounts at select merchants. The card operates on the American Express network.
Who is the Rakuten American Express Card Suitable For?
The Rakuten American Express Card is most suitable for frequent Rakuten users who can maximize the card's rewards by shopping at or dining with Rakuten-featured merchants. Membership for Rakuten is free but requires creating an account, and to get the Rakuten American Express Card, you must be a Rakuten member.
Comparison with Other Cash-Back Cards
If you don't use Rakuten frequently, it's better to consider a different cash-back card. Some top alternatives include the Citi Double Cash® Card, Chase Freedom Flex℠, and Chase Freedom Unlimited®. These cards offer straightforward and broad rewards without needing to shop through Rakuten.
| Card Name | Key Features | Annual Fee | Cashback Rate | |----------------------------------|---------------------------------------------------|---------------------|------------------------------------------| | Citi Double Cash® Card | Simple flat-rate cashback, 2% total (1% on purchase + 1% on payment) | No annual fee | 2% cash back on all purchases | | Chase Freedom Flex℠ | $200 sign-up bonus, rotating 5% categories including some online and grocery, plus 1.5% on all other purchases | No annual fee | 5% on categories (rotates), 1.5% flat | | Chase Freedom Unlimited® | Flat 1.5% cashback on all spending + bonus cash back on travel/dining | No annual fee | 1.5% on all purchases, up to 3% in some categories | | Bank of America Business Advantage Unlimited Cash Rewards Mastercard (for business users) | Simple 1.5% unlimited cash back, no category tracking, 0% intro APR on purchases | No annual fee | 1.5% cash back unlimited |
In comparison, the Rakuten Amex Card offers significant rewards if you frequently shop/rent through Rakuten or at partner restaurants, but with limits on max cash back per year due to caps.
Conclusion
The Rakuten American Express Card is an excellent choice for frequent Rakuten users who can maximize the card's rewards by shopping at or dining with Rakuten-featured merchants. However, if you don't use Rakuten frequently, you might benefit more from a more universal cash-back card with a flat or broadly useful category structure like Citi Double Cash or Chase Freedom products, which require less specific spending behavior to maximize rewards.
[1] NerdWallet provides information related to the Rakuten American Express Card, which has not been reviewed or provided by the issuer of this product. [4] The card's rewards outside of Rakuten are mediocre compared to other cash-back cards in categories like dining, groceries, and common spending categories.
- Technology has played a significant role in the finance industry with the introduction of the Rakuten American Express Card, a tool that offers credit rewards for business and personal spending.
- If you're a frequent user of Rakuten, the technology platform that offers shopping and finance services, the Rakuten American Express Card could help you save on spending through its cash back rewards, especially during dining at partner restaurants.
- However, if you're not an active Rakuten user or prefer a more balanced approach to credit spending, its advisable to consider other cash back apps like the Citi Double Cash® Card or Chase Freedom Flex℠, which provide broader rewards categories without the need for specific business relationships with technology platforms like Rakuten.
