New Rakuten Credit Card Offers Shoppers an Extra 4% Back

Cash-back website Rakuten is launching a new credit card for its members. The Rakuten American Express Card doesn’t charge an annual fee and allows holders to earn an additional 4% cash back on top of what they can earn by shopping online or in person with Rakuten.

The card is serviced by financial technology company Imprint, issued by First Electronic Bank, and operates on the American Express network. This means cardholders get access to American Express network benefits like Amex Offers, which features bonus rewards and discounts at select merchants.

You must be a Rakuten member to get the Rakuten American Express Card. Membership is free but requires creating an account.

Welcome bonus: Earn $25 cash back when you spend $500 in the first 90 days after account opening.

• 4% cash back on Rakuten online or in-person purchases, on up to $7,000 of spending per calendar year (1% back after that). This is in addition to what users earn through Rakuten’s platform. 

• 5% cash back when you dine at a Rakuten partner restaurant. This is in addition to the 5% Rakuten members earn with Rakuten dining, for a total of 10% with the card.

• 2% cash back on groceries and non-Rakuten dining.

• 1% cash back on all other non-Rakuten spending.  

Note: The Rakuten platform lets you choose to earn your rewards as points in the American Express Membership Rewards system, instead of as cash back — as long as you also happen to have a separate Membership Rewards-earning AmEx card. (1% in Rakuten cash back = 1 Membership Rewards point.) However, this does not apply to earnings with the new Rakuten American Express Card. It’s not issued by AmEx and doesn’t earn Membership Rewards points, so cash back is the only option.

This Rakuten American Express Card makes the most sense for frequent Rakuten users. The ability to stack cash back earned with the card and through the site means you can rack up rewards easily if you consistently shop at or dine with Rakuten-featured merchants.

However, keep in mind that you’ll earn 4% back only on the first $7,000 you spend with the card per year on Rakuten (not including Rakuten dining purchases) — which you can hit quickly depending on your shopping habits — which merchants you’re shopping with, and what you’re buying.

Plus, the card’s rewards on spending outside of Rakuten are mediocre. There are better cash-back cards that earn more in categories like dining, gorceries and other common spending categories. If you don’t use Rakuten often, you’re better off with a different card.