The Rakuten American Express® Card is a new cash-back card that offers Rakuten members (it's free to join) the opportunity to earn additional rewards. It doesn't have an annual fee, and it earns elevated rewards on Rakuten purchases, as well as on Rakuten Dining purchases, everyday dining and groceries.
The best part? You can convert your rewards to American Express Membership Rewards® points if you already have a card that earns these points. We'll explain more about that below, along with the benefits, earning rates and fees of the Rakuten American Express Card.
The Rakuten Amex Card is an OK cash-back card, but its value dramatically increases when you pair it with an Amex card that earns Membership® Rewards points.
- No annual fee
- No currency conversion fees
- Can earn flexible Amex points, if you have another card that earns Membership Rewards® points
- Small welcome offer
- Quarterly payment for rewards, not monthly
The Rakuten American Express® Card review
Welcome bonus
The Rakuten Amex Card offers a welcome bonus of $25 when you spend $500 on purchases within 90 days of account opening. While better than nothing, this bonus is lower than the welcome offers you can earn on the best cash back credit cards (often $200 or more).
Benefits and perks
Since this is an Amex card, you'll get access to Amex Offers, which stack on top of the rewards you earn for purchases. These offers allow you to earn additional rewards on eligible purchases when the specific offer details are met.
Other benefits include:
- Purchase protection*
- Extended warranties*
- Access to Amex Experiences
*Eligibility and benefit level varies by card. Terms, conditions and limitations apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by AMEX Assurance Company.
Find the best credit card for you by reviewing offers in our credit card marketplace or get personalized offers via CardMatch™.
How to earn and redeem rewards
Earning
The Rakuten Amex Card offers rewards on everything you buy, but cash back is doled out in a few different tiers. You can earn:
- 4% cash back on Rakuten purchases (on top of cash back earned for shopping through the platform) on up to $7,000 in credit card spending each calendar year (then 1% back)
- 5% cash back on Rakuten Dining (on top of 5% cash back earned for dining at eligible restaurants)
- 2% cash back on groceries and other dining
- 1% cash back on all other purchases
You have to be a member of Rakuten to apply for the Rakuten American Express Card. It's free to enroll in the program.
Redeeming
Cash back earned with the Rakuten American Express Card is given out every three months on the following payment dates:
- February 15
- May 15
- August 15
- November 15
You also need to have a minimum confirmed earnings of at least $5.01 before the next payment date in order to get paid.
Redemption options include:
- PayPal transfer to your account
- Check in the mail
- Gift cards (through the Rakuten app only)
You can choose to convert your cash back into American Express Membership Rewards® points if you have another qualifying American Express card that earns Membership Rewards® points. If you go this route, $1 in cash back equals 100 Membership Rewards® points.
Rates and fees
The Rakuten American Express Card doesn't have an annual fee or currency conversion fee. There is a late payment fee and a returned payment fee of up to $35. And the variable APR this card charges can be much higher than average credit card interest rates.
Card comparison
Rakuten American Express® Card vs. Wells Fargo Active Cash® Card
The Wells Fargo Active Cash® Card is great if you want simplicity thanks to its flat-rate 2% unlimited cash rewards on purchases and $0 annual fee.
- High, unlimited flat-rate return on purchases
- Intro APR on purchases and qualifying balance transfers
- Lower introductory balance transfer fee
- Up to $600 of cell phone protection against damage or theft (subject to a $25 deductible)
- Charges a 3% foreign transaction fee
- Balance transfer fee increases to 5% of each transfer (minimum $5) after 120 days
- Limited redemption options unless you pair it with a Wells Fargo card that allows point transfers
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Apply Now to take advantage of this offer and learn more about product features, terms and conditions.
- Earn a $100 cash rewards bonus after spending $500 in purchases in the first 3 months.
- Earn unlimited 2% cash rewards on purchases.
- 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers. 18.74%, 24.74%, or 28.74% variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
- $0 annual fee.
- No categories to track or remember and cash rewards don't expire as long as your account remains open.
- Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
Balance Transfer Fee
3% intro for 120 days from account opening, then up to 5%, min: $5
Foreign Transaction Fee
3%
The Wells Fargo Active Cash® Card is one of the top no-annual-fee cash back credit cards because it earns a flat 2% cash rewards on purchases you buy. It also comes with a $100 cash rewards bonus after spending $500 in purchases in the first 3 months.
Another standout feature of the Active Cash® Card is its intro APR offer for purchases and qualifying balance transfers, which the Rakuten American Express Card is sorely lacking.
Rewards earned with the Wells Fargo Active Cash® Card also accrue in your account as you earn them, so you don't have to wait three months to use your cash back like you do with the Rakuten American Express Card. You can redeem rewards for flexible options like statement credits, gift cards and transfers to an eligible bank account from Wells Fargo.
Rakuten American Express® Card vs. Chase Freedom Flex® Credit Card
The Chase Freedom Flex® is an excellent cash-back card with generous rotating quarterly categories. In additional the rewards, you also can take advantage of the intro APRs for purchases and balance transfer for more than a year.
- Long intro APR for purchases and balance transfers
- Rewarding quarterly bonus categories
- No annual fee
- Bonus categories are capped each quarter
- Has a foreign transaction fee
Rewards
- 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate (then 1%)
- 5% cash back on travel booked through Chase Travel℠
- 3% on drugstore purchases and on dining (including takeout and eligible delivery services)
- 1% cash back on all other purchases
Balance transfer fee
Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, on transfers made within 60 days of account opening. After that, either $5 or 5% of the amount of each transfer, whichever is greater.
Foreign transaction fee
3%
If you want to earn an outsized cash back rate on certain purchases throughout the year, the Chase Freedom Flex® Credit Card should be on your list. With a $0 annual fee, this card earns 5% cash back on up to $1,500 in purchases in quarterly bonus categories that change every three months (then 1% cash back). Activation is required. It also earns 3% cash back on dining and drugstore spending, and it comes with a valuable intro APR offer for purchases and balance transfers.
The welcome bonus on the Freedom Flex Card is also superior to what you get with the Rakuten American Express Card. New cardholders earn a limited time offer: Earn a $250 Bonus after you spend $500 on purchases in your first 3 months from account opening Redemption options include cash back, statement credits, gift cards, merchandise and even travel booked through Chase Travel℠.
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Is the Rakuten American Express Card right for you?
If you already shop through Rakuten to earn more cash back or you're considering doing so, the Rakuten American Express Card boosts your rewards on every purchase. Rakuten Dining members can earn even more rewards when they dine at eligible eateries, and the card offers an elevated earning rate on other dining purchases and groceries as well. So it can make sense for anyone who already spends on these purchases or would consider shifting your spending.
However, there are notable drawbacks compared to other no-annual-fee cash-back credit cards. For starters, you'll only be able to receive your rewards every three months, and it earns an unimpressive 1% cash back on non-bonus purchases. Its high variable APR can also wipe out the value of your rewards if you carry a balance.
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Information about the Chase Freedom® has been collected independently by CNBC Select and has not been reviewed or provided by the issuer of the card prior to publication.
