Now the welcome bonus on this card has been increased to $200, and the offer ends on August 25! Rakuten points can be converted to Membership Rewards, which opens up access to a huge number of transfer partners. So this card still has pretty solid value!

Rakuten is now offering a $50/5k-point sign-up bonus, so remember to sign up before applying for this card

Rakuten has teamed up with the startup Imprint to launch a new credit card. This card runs on the AMEX network. It also has quite a few highlights, so let me walk you through them:

Rakuten Credit Card Overview

Basic Info

Cash Back Structure

  • Extra 4% cash back at Rakuten merchants: Rakuten's cash-back merchants (3,500 in total, including in-store and online) give an additional 4% cash back, capped at $7,000 in spending per year. After that, it drops to 1% cash back.
  • Rakuten Dining (including 22,000 partner restaurants) 5% extra cash back: combined with Rakuten Dining's own 5%, that adds up to 10% cash back. If a merchant you like happens to be in the program, 10% cash back is pretty impressive. You only need to link a credit card, and purchases will earn automatically, which is very convenient. At minimum, you get 2% cash back, and if you're lucky, you can get 10% cash back. You can check specific merchants at the link below. Rakuten Dining
  • 2% cash back on groceries and restaurants
  • 1% cash back on all other purchases

4% Extra Cash Back

Below, let's focus on Rakuten's 4% extra cash back at merchants. First, the cap is $7,000, so the maximum extra cash back each year is $280. That $280 in cash back is equivalent to 28,000 Membership Rewards points, and if you use them to book airline awards, you can stretch the value even further. Rakuten's merchants are split into online merchants, meaning merchants you shop with online, and many of them already offer decent cash back, so adding this 4% is great.

This 4% is even better for certain merchants, like Target, Walmart, and Apple, where the base cash back is very low. This 4% is fixed no matter how low the merchant's own rate is. That is basically like having a credit card that earns 4x+ at Target.

Let's also look at the merchants that offer in-store cash back. There are quite a few of them, and most have relatively low rates, so this extra 4x becomes even more valuable. It's roughly like having this Rakuten card and getting 6x cash back when you shop at Sephora. For these beauty stores, in-store deals and samples are usually better than online, so beauty resellers may want to consider this card. The same goes for sneaker and athletic-brand resellers like Nike and Adidas.

Convert Cash Back to Membership Rewards

There are now two versions of Rakuten accounts. If you switch to the MR version, all cash back you earn will be converted 1:1 into MR points. For example, if something is listed as 5% cash back, that is equivalent to 5x MR points. If you spend $100, it will automatically convert to 100*5=500 MR points (instead of $100*5%=$5 in cash back). All cash back is transferred at this ratio. The $25 referral bonus will become 2,500 MR points. Cash back earned from the Rakuten co-branded card will also convert to MR. In terms of point value, MR is worth around 1.6 cents per point, which is higher than a 1:1 cash-back rate. If you know how to use MR well, the MR version of the account is better. If you don't have the relevant cards or aren't familiar with using MR, a cash-back account is still simpler.

Steps for New Users

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

Existing Users Switch to MR

Existing users can now switch their Rakuten accounts to the MR version. All cash back earned before the switch will be paid out according to the cash-back rules. Cash earned after the switch will be calculated as MR. You can switch this in account settings, then log in to your AMEX account to link the accounts.

Combine with Rakuten+ Membership

Rakuten has launched a new Rakuten+ membership, which will offer 10% cash back at select merchants and a $50 back on $250 spent benefit. It is still in the waiting list stage, 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 probably under $50. If you use the card for reselling, adding this membership should amplify returns even more.

Looking at the merchants that offer 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 would likely 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.

Apply

This card was just launched, so there aren’t many application data points yet. However, on the application page there’s an interesting prompt: 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 related to AMEX’s credit reporting arrangement. That said, if your application is approved and this new card appears on your credit report, it will still affect your credit score.

Application Link