Rakuten Cash Back Visa Credit Card Review

The Rakuten Visa Card is one of the few See cardholder agreement annual fee options for those who wish to earn American Express Membership Rewards points. With a robust earnings rate of 3% cash or 3 Membership Rewards points per dollar spent on purchases made through the Rakuten portal, earnings can be substantial.

Some might not recognize the Rakuten name, but do know the site by its former name: Ebates. Ebates was one of the first cash-back portals and Rakuten is still one of the largest. That said, Rakuten bonuses do not apply to every online purchase. Some major vendors, such as Amazon and Walmart, do not offer incentives on many categories using the portal.

The downside? A puny 1% back on non-Rakuten portal purchases, whether online or brick and mortar based. The card also lacks a substantial welcome bonus and no travel perks.

• see cardholder agreement
• See cardholder agreement annual fee
• Best used in conjunction with an American Express Membership Rewards card.

Earning Rewards

The Rakuten Visa Card offers a welcome bonus of see cardholder agreement, so clearly you’re not getting this card in order to earn the bonus. Upon opening the account, you are prompted to sign up for a Rakuten account or link an existing account. At that time if you choose to earn Membership Rewards points, you link an existing American Express card. The points will be paid to the American Express Membership Rewards account you select four times per year.

Alternatively you can do nothing extra at sign-up and the rewards will go to your Rakuten account. Cash back is paid out via Paypal four times a year.

For ongoing spending the card offers see cardholder agreement.

The rewards you earn using the card are in addition to the ones you would earn using another form of payment on the Rakuten portal. For example: If a store earns 5% cash back (or 5 Membership Rewards points per dollar) on Rakuten, you would earn 8% (or 8 Membership Rewards points per dollar) net by using the Rakuten Visa to make the purchase.

Rakuten also has an in-store option that allows you to earn cash back or points for in-store purchases. To earn points, you first have to link the offer in your Rakuten account then make sure your Rakuten Visa is linked. If you take those steps you will earn the 3% (or 3 point) bonus using the Rakuten Visa in-store.

Redeeming Rewards

The best value the Rakuten Visa card offers is the ability to earn Membership Rewards points. American Express Membership Rewards points are valuable because they are flexible. The points can be transferred to any one of more than a dozen travel partners, most at a 1:1 ratio.  In addition, American Express offers frequent transfer bonuses which allow you to maximize your points even further.

Among the most commonly used airline transfer partners are Delta (for SkyTeam airlines), British Airways and Iberia Avios (Oneworld) and Air Canada Aeroplan (Star Alliance).

Alternatively you can choose cash back as your option, in which case you will receive a Paypal deposit four times per year.

Rewards Potential

To determine the rewards potential of the Rakuten Visa we have to look at the bonus categories and calculate what an example American household might spend in those areas. Forbes Advisor uses data from various government agencies in order to determine both baseline income and spending averages across various categories. The 70th percentile of wage-earning households bring in $100,172 annually and we base spending on that number.

Forbes Advisor calculates that the typical household spends $2,377 annually on shopping online. At 3 Membership Rewards points per dollar or 3% cash back spent on online purchases using Rakuten, the family would earn an extra 7,131 Membership Rewards points or $71.31 per year.

Spending $21,512  on other purchases that could reasonably be charged to a credit card would earn 21,512  Membership Rewards points or $215.52. This adds up to annual 28,643 Membership Rewards points or $286.43 in cash back. By selecting the Membership Rewards option and using transfer partners, the return on spending can be much higher than the alternative cash back earned.

Keep in mind that this number represents only the bonus; the family would still earn points via the Rakuten portal for the stores at which they shop. This could vary depending on the retailer from 1% to 10% or more.

As a Visa card, the Rakuten card comes with several benefits including:

• ID Navigator Identity Theft Protections: Enroll in this complimentary service from Norton LifeLock and get credit monitoring and assistance if your identity is compromised
• Cardholder Inquiry Service: Get 24-hour access to a Visa representative with any questions about your account
• Lost or Stolen Card Assistance: You can report your lost or stolen card 24 hours a day seven days a week. Visa will work with you and your issuing bank as needed to put a hold on your missing account, issue a replacement card and/or arrange for an emergency cash disbursement
• Zero Liability: Your liability for unauthorized transactions is $0

Interest Rates

• APR for Purchases: See cardholder agreement

Fees

• Annual Fee: See cardholder agreement
• Balance Transfer Fee: N/A
• Foreign Transaction Fee: See cardholder agreement
• Cash Advance Fee: See cardholder agreement

Three cards make sense to compare to the Rakuten Visa. One of these could be a better choice depending on your needs.

Rakuten Cash Back Visa® Credit Card* vs Amex EveryDay® Credit Card*

If you want to collect Membership Rewards points with a $0 annual fee but don’t do most of your shopping online, the American Express EveryDay card may be a match for you. It offers 2 Membership Rewards points per dollar at US supermarkets on up to $6,000 per year in purchases (then 1X), 2 points per dollar when using the card to book trips through American Express Travel and 1 point for every eligible dollar on everything else. Plus, use the card 20 or more times on purchases in a billing period and earn 20% extra points on those purchases.

Alternatively, the American Express EveryDay could be a good companion card to the Rakuten Visa.

Rakuten Cash Back Visa® Credit Card* vs. Amazon Visa Credit Card*

If you shop more at Amazon than any other online retailer, the no-annual-fee Amazon Visa might be better for you. This card, which doesn’t require Amazon Prime membership, offers 3% back at Amazon.com, Amazon Fresh, Whole Foods Market and on Chase Travel purchases. Earn 2% back at gas stations, restaurants and on local transit and commuting (including rideshare). Earn 1% back on all other purchases.

Rakuten Cash Back Visa® Credit Card* vs. Capital One Walmart Rewards® Mastercard®*

If you’re a Walmart.com loyalist, consider the Capital One® Walmart Rewards™ Card. Walmart is often absent from the Rakuten portal so you won’t earn bonus points using the Rakuten Viisa, but the Walmart Rewards Card offers a solid 5% cash back on Walmart.com, the Walmart App and Walmart Grocery pickup and delivery.  It also offers 2% cash back at Walmart brick and mortar locations in addition to restaurant and travel purchases.

Related: Best Credit Cards Of 2024

If you are a heavy online shopper and you already use cash-back portals, the Rakuten Visa is an easy addition to your credit card portfolio. With See cardholder agreement annual fee and a substantial bonus for Rakuten portal purchases, your earnings could add up quickly.

The Rakuten Visa card also makes perfect sense for someone who wants a no-annual-fee card that earns Membership Rewards points. If you already have an American Express card that allows access to Membership Rewards, the Rakuten Visa is a great companion.

However, if you don’t use the Rakuten portal regularly, the card is not a fit for you. There are better cards available that earn more than the 1% cash back the card offers on all other purchases.