Attention American Express Membership Rewards points earners: Rakuten has just launched a credit card allowing cardholders to earn an additional 4 points for every dollar spent, stacking on top of the Membership Rewards points earned through Rakuten’s special offers.
Though the card is primarily marketed as a cash-back option, a spokesperson for Rakuten confirmed that users who choose to earn Membership Rewards points can convert their cash back into points.
This is particularly beneficial given American Express’s once-per-lifetime welcome bonus restrictions, which make earning Membership Rewards points more challenging compared to other currencies.
Here’s everything you should know about the no-annual-fee Rakuten American Express® Card.
Note: The information regarding the Rakuten American Express Card has been independently collected by The Points Guy, and the details shared have not been verified by the card issuer.
Earn Extra Membership Rewards Points
For those keen on accumulating points and miles, utilizing Rakuten is one of the best strategies to earn bonus Membership Rewards points.
By activating offers, you can score extra points on top of your standard card earning rates. While most bonuses are typical, some have reached up to 20 points per dollar spent.
To take advantage of this lesser-known earning strategy, you must actively choose to earn Membership Rewards points rather than cash back.
Note that only those with a Membership Rewards-earning card can benefit from this feature.
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As long as you’ve chosen to earn Membership Rewards points through Rakuten, the Rakuten American Express card can enhance your points earning with each purchase. This card offers:
- 10 points per dollar spent (or 10% cash back) at Rakuten restaurant partners
- 4 points per dollar spent (or 4% cash back) in addition to what you earn with Rakuten
- 2 points per dollar spent (or 2% cash back) on grocery and restaurant purchases
- 1 point per dollar spent (or 1% cash back) on all other purchases
Moreover, you can earn $25 back (or 250 points) after spending $500 within the first 90 days of opening the account.
Given that there’s no annual fee for this card, the earning potential is fantastic.
If you encounter a top-tier Rakuten offer of 20 points per dollar spent, this card can elevate that to an incredible 24 points per dollar spent—an offer unmatched by any other card available.
Additional Benefits of the Rakuten Amex Card
While the earning rates are likely to attract many cardholders, the Rakuten Amex also comes with additional advantages worth noting:
- Amex Offers: Cardholders have access to Amex Offers, which provide opportunities to earn extra cash back or Membership Rewards points with selected retailers. These offers can be combined with Rakuten for an even greater points boost.
- Retail Protection: Covers items that are stolen or damaged within 90 days of purchase.
- Extended Warranty Protection: Eligible warranties can be extended for up to 12 months.
This is a robust collection of benefits for a no-annual-fee card. Amex Offers may differ among cards, so it will be interesting to see what promotions Rakuten Amex cardholders receive and how they may align with Rakuten offers.
Is the Rakuten Amex Issued by American Express?
Despite its name, the Rakuten Amex is not issued by American Express directly.
The card is actually issued by First Electronic Bank under a license from American Express.
This means any questions or concerns regarding your card should be directed to First Electronic Bank’s customer service.
This also likely means you’re not bound by American Express’s application rules or welcome bonus limitations. For example, if you’ve reached the five-card limit for Amex credit cards, you can still apply for the Rakuten Amex.
My Thoughts on the Rakuten Amex
For a no-annual-fee card, the Rakuten Amex appears almost too good to be true. The chance to earn a significant amount of Membership Rewards points is not to be missed.
I do have some reservations about cards from smaller issuers, as they may be more susceptible to issues and subpar customer service. However, I wouldn’t dismiss the card if it brings considerable value.
I’m adding the Rakuten Amex to my credit card wish list, and I believe it’s a smart choice for anyone earning Membership Rewards points, especially if they’ve already utilized their Amex sign-up bonuses.
Just keep in mind, you must hold a Membership Rewards points-earning card to tap into the Membership Rewards points potential of your Rakuten Amex. Otherwise, you’ll only receive cash back, which significantly decreases the card’s value.
Some excellent options include the American Express® Gold Card and The Platinum Card® from American Express.
If you’re looking for a no-annual-fee alternative, consider the The Blue Business® Plus Credit Card from American Express (see rates and fees) instead.
Final Thoughts
This is an exciting new opportunity from Rakuten.
Transferable rewards currencies like Membership Rewards are highly valuable, making any chance to increase your points welcome. If you’re already using Rakuten to boost your rewards, this card is a no-brainer.
I plan to apply once my 5/24 status improves, and I recommend that fellow points and miles enthusiasts do the same.
Related: How to Maximize Online Shopping Portals for Your Purchases
For rates and fees of the Amex Blue Business Plus, click here.
