The sign-up bonus on this card has now been increased to $200, with no end date known! Rakuten points can be converted to Bilt points and Membership Rewards, opening up a huge set of transfer partners. So this card is still quite valuable!

Rakuten now has a $50/5k points signup bonus, so make sure to sign up before applying for this card.

Rakuten and startup company Imprint have launched a new co-branded credit card, and it runs on the AMEX network. There are quite a few highlights, so let’s take a look:

Rakuten Credit Card Overview

Basic Information

Cash Back Structure

  • Extra 4% cash back at Rakuten merchants: An additional 4% cash back at merchants offering Rakuten’s cash back (3,500 merchants total, including in-store and online), up to $7,000 in annual spending. After that, it drops to 1% cash back.
  • Extra 5% cash back at Rakuten Dining (including 22,000 partner restaurants): Combined with Rakuten Dining’s own 5%, that comes out to 10% cash back. If a merchant you like happens to be in the program, 10% cash back is pretty attractive. You just need to link your credit card, and purchases will automatically earn cash back. That’s pretty convenient. At minimum it’s 2% cash back, and if you’re lucky it can be 10% cash back. You can check participating merchants at the link below. Rakuten Dining
  • 2% cash back on grocery and restaurant purchases
  • 1% cash back on all other purchases

Extra 4% Cash Back

Let’s focus on the merchant-side 4% extra cash back from Rakuten. First, the cap is $7,000, so you can earn up to an extra $280 cash back per year. That $280 cash back is equivalent to 28,000 Membership Rewards points, and if you redeem through airline partners, you can stretch the value even further. Rakuten merchants are split into online merchants, meaning merchants you shop with online. Many of these merchants already offer decent cash back, so adding this extra 4% is excellent.

This 4% works even better for certain merchants, such as Target, Walmart, and Apple. These merchants usually offer very low cash back on their own, but this 4% is fixed regardless of how low the base rate is. That’s basically like having a credit card that earns 4x+ at Target.

If you look at which merchants offer in-store cash back, there are quite a few as well. And most of them have relatively low rates, so the value of this extra 4x becomes even more obvious. It’s like having this Rakuten card and earning 6x cash back when you shop at Sephora. For beauty stores like these, in-store deals and samples are usually better than online, so beauty resellers may want to consider this card. The same goes for resellers of sports brands like Nike and Adidas.

Converting Cash Back to Membership Rewards

There are now two versions of Rakuten accounts. If you switch to the MR version of the account, all cash back earned will be converted to MR points at a 1:1 rate. For example, if something says 5% cash back, that is effectively 5x MR points. If you spend $100, it will automatically convert to 100*5=500 MR points (instead of earning $100*5%=$5 cash back). All cash back is converted at this rate. A $25 referral bonus will become 2,500 MR points, and cash back earned from the ebates co-branded credit card will also convert to MR. In terms of point value, MR is worth around 1.6 cents per point, which is better than 1:1. If you know how to use MR points well, the MR version of the account is the better choice. If you don’t have the right credit cards or aren’t familiar with using MR, then the cash back account is simpler.

New User Conversion Steps

  • Select get started
  • Then just log in to your AMEX online banking account

Existing Users Switching to MR

Existing users can now switch their Rakuten account to the MR version. Any cash back earned before the switch will be paid out under the cash back rules. Earnings after the account switch will be calculated as MR. You can make the switch in account settings, then log in to your AMEX account to link the accounts.

Combine with Rakuten+ Membership

Rakuten has also launched a new Rakuten+ membership, which offers 10% cash back at select merchants and a $50 rebate for $250 in spending. It is currently on the waiting list, so if you’re interested you can join and wait for updates. Based on the terms, this membership should have a fee. My guess is that it should be under $50. If you use this card for reselling, adding the membership should help maximize returns even more.

Looking at the merchants with extra rewards, this membership is probably aimed at users who buy a lot of clothing, bags, and similar items. If you do reselling, getting one should be much more worthwhile.

Bloomingdale’s, Neiman Marcus, Bergdorf Goodman, Moda Operandi, Italist, Kate Spade New York, 3.1 Philip Lim, A.L.C., Alice + Olivia, Brochu Walker, Eric Javits, Farm Rio, Four Seasons Home, Frances Valentine, Frank & Eileen, Gilt, GIGLIO, Indochino, Mackage, Maje, Mansur Gavriel, Michael Kors, Merlette, Moschino, Proenza Schouler, Rag & Bone, Ramy Brook, Reiss Online, Sandro, Showroom, Stuart Weitzman, Stuart Weitzman Outlet, TESSABIT, Trina Turk, Vestiare Collective, Vince, Zadig&Voltaire.

Application

This card was just launched, so there aren’t many application data points yet. However, on the application page there is an interesting note: you can see whether you can be approved with no impact to your credit score. That probably means they will soft pull you, so you can get this card without a hard pull. I’m guessing this is also tied to AMEX’s credit reporting relationship. That said, if your application is approved and this new card shows up on your credit report, it will still affect your credit score.

Application Link