Have you ever wondered if there’s a credit card that could make your everyday shopping or dining out feel like a mini-victory? I’ve been there, sifting through endless card options, trying to find one that fits my lifestyle without breaking the bank. That’s where the Rakuten American Express® Card caught my eye—a no-annual-fee card that promises cash back and, for some, the chance to dip into flexible travel rewards. Let’s dive into what makes this card tick, its perks, quirks, and whether it’s worth a spot in your wallet for 2025.
Why the Rakuten Amex Card Stands Out
The world of credit cards is crowded, but the Rakuten Amex Card carves out a niche for shoppers and diners who love a good deal. What’s the draw? It’s not just about earning cash back—though it does that well—it’s the option to convert those rewards into American Express Membership Rewards® points if you already hold another Amex card that earns these points. This flexibility is a game-changer for anyone who values travel rewards as much as cold, hard cash. Let’s break down what this card offers, from its rewards structure to its hidden benefits, and see if it’s a match for your spending habits.
Welcome Bonus: A Modest Start
Every credit card worth its salt offers a welcome bonus, and the Rakuten Amex is no exception. New cardholders can earn a $25 bonus after spending $500 within the first 90 days. It’s not the flashiest offer out there—some cards dangle $200 or more—but for a no-annual-fee card, it’s a nice little nudge. I’ve always thought welcome bonuses are like a warm handshake; they don’t make or break a card, but they set the tone. If you’re a light spender, this bonus is achievable, but heavy hitters might find it underwhelming compared to top-tier cash back cards.
A modest welcome bonus can still add value, especially when paired with a card’s ongoing rewards.
– Personal finance expert
How You Earn Rewards
The Rakuten Amex Card’s rewards structure is straightforward but shines brightest for specific spenders. Here’s how it breaks down:
- 4% cash back on Rakuten purchases (up to $7,000 per year, then 1%)
- 5% cash back on Rakuten Dining at eligible restaurants
- 2% cash back on groceries and other dining
- 1% cash back on all other purchases
If you’re already a Rakuten member (it’s free to join, by the way), that 4% cash back on Rakuten purchases stacks on top of the platform’s existing rewards, which is a sweet deal for online shoppers. The 5% back on Rakuten Dining is a standout for foodies who frequent participating restaurants. Groceries and dining at 2% are solid, but the 1% on everything else feels a bit stingy compared to cards offering a flat 2% across the board. Personally, I love the idea of earning extra rewards on my takeout orders, but I wish the “everything else” category was more generous.
The Travel Rewards Twist
Here’s where things get interesting. If you have another Amex card that earns Membership Rewards® points, you can convert your Rakuten cash back into these points at a rate of $1 = 100 points. This is huge for travelers, as Membership Rewards points are some of the most versatile in the game, redeemable for flights, hotels, or transfers to travel partners. It’s like turning your grocery run into a step toward a dream vacation. But if you don’t have another Amex points-earning card, you’re stuck with cash back, which isn’t a bad deal—just less exciting.
Flexible rewards like Membership Rewards points open doors to travel opportunities that cash back alone can’t match.
– Travel rewards enthusiast
Redemption Options and Timing
Redeeming rewards with the Rakuten Amex Card isn’t as instant as some competitors. You’ll get your cash back quarterly, on these dates:
- February 15
- May 15
- August 15
- November 15
You need at least $5.01 in confirmed earnings to cash out, which is a low bar but worth noting. Redemption options include PayPal, a check in the mail, or gift cards via the Rakuten app. The quarterly payout schedule is a bit of a letdown—other cards let you redeem as soon as you earn. I’ve always found waiting for rewards a bit like waiting for a delayed flight: it’s not a dealbreaker, but it’s annoying when you’re eager to use what you’ve earned.
Perks That Add Value
Beyond rewards, the Rakuten Amex Card comes with a few Amex perks that sweeten the deal. Amex Offers let you earn extra rewards on specific purchases, like discounts at select retailers or bonus cash back at restaurants. Then there’s purchase protection and extended warranties, which can save you a headache if something you buy breaks or gets stolen. Access to Amex Experiences is a nice touch for event-goers, offering presale tickets or exclusive deals. These benefits aren’t unique to this card, but they add a layer of value that makes it feel like more than just a cash back card.
Fees and Rates: What to Watch For
No annual fee? Check. No foreign transaction fees? Check. The Rakuten Amex Card keeps costs low, which is a big win for budget-conscious cardholders. But the variable APR—ranging from 19.74% to 33.99%—is steep. If you carry a balance, those interest charges could eat your rewards faster than you can say “cash back.” There’s also a late payment or returned payment fee of up to $35, so stay on top of your bills. In my opinion, the high APR is a red flag for anyone who doesn’t pay off their card monthly.
| Feature | Rakuten Amex Card |
| Annual Fee | $0 |
| Foreign Transaction Fee | $0 |
| Variable APR | 19.74%–33.99% |
| Late Payment Fee | Up to $35 |
How It Stacks Up Against Competitors
To see if the Rakuten Amex Card is worth your while, let’s compare it to two popular no-annual-fee cash back cards: the Wells Fargo Active Cash® Card and the Chase Freedom Flex® Credit Card.
Rakuten Amex vs. Wells Fargo Active Cash
The Wells Fargo Active Cash Card is a minimalist’s dream, offering a flat 2% cash back on all purchases with no categories to track. Its welcome bonus is more generous—$200 after spending $500 in the first three months—and it includes a 0% intro APR for 12 months on purchases and qualifying balance transfers. Unlike the Rakuten Amex, rewards are available to redeem as you earn them, not quarterly. The downside? A 3% foreign transaction fee makes it less ideal for international travel. If simplicity is your thing, the Active Cash might edge out the Rakuten Amex, but it lacks the travel points potential.
Rakuten Amex vs. Chase Freedom Flex
The Chase Freedom Flex Card is a powerhouse for category-driven spenders. It offers 5% cash back on up to $1,500 in quarterly bonus categories (activation required), plus 5% on travel booked through Chase, 3% on dining and drugstores, and 1% on everything else. Its $200 welcome bonus after spending $500 in three months beats the Rakuten Amex, and it comes with a 0% intro APR for 15 months. The catch? Bonus categories require planning, and there’s a 3% foreign transaction fee. If you’re strategic about your spending, the Freedom Flex could outshine the Rakuten Amex, but it’s less tailored to Rakuten shoppers.
Who Should Get the Rakuten Amex Card?
This card is a solid pick for Rakuten loyalists who shop through the platform regularly or dine at participating restaurants. If you already have an Amex card that earns Membership Rewards points, the ability to convert cash back into points is a major perk, especially for travel enthusiasts. But if you’re after simplicity or instant reward access, other cards might suit you better. The high APR also means it’s best for those who pay their balance in full each month.
- Ideal for: Rakuten shoppers, Amex points collectors, frequent diners
- Not great for: Those seeking flat-rate rewards or instant redemption
Final Thoughts: Is It Worth It?
The Rakuten Amex Card isn’t going to revolutionize your finances, but it’s a strong contender for specific audiences. Its no-annual-fee structure, solid rewards on Rakuten and dining purchases, and travel points potential make it appealing for the right user. However, the quarterly payout schedule and lackluster 1% cash back on non-bonus categories hold it back from being a top-tier card. In my experience, the best credit cards fit seamlessly into your spending habits—does this one match yours? If you’re a Rakuten regular or an Amex points chaser, it’s worth a look. Otherwise, explore other options before committing.
Choose a card that rewards your lifestyle, not one that makes you chase rewards.
– Financial advisor
So, what’s the verdict? The Rakuten Amex Card offers a unique blend of cash back and travel rewards potential, but it’s not a one-size-fits-all solution. Weigh your spending habits, compare it to competitors, and decide if its perks align with your goals. After all, the right card should feel like a partner in your financial journey, not a puzzle to solve.
