If you are an Amex cardholder, you have likely heard about Rakuten and its great cash back program. There seems to be discussions regularly about connecting your Amex Card to the sales portal without much dive into the “what & why”. If you have not yet heard the rumblings, or just have further questions, this one may be for you. If you are not an Amex and unsure what your next card should be, read our article on Choosing the Best Card For Your Travel Needs. Amex is currently having a promo for 150,000 points SUB through referral HERE.
CONTENTS
1. What Is Rakuten?
2. How Does Rakuten Work?
3. Rakuten + Amex
4. How To Sign Up
5. Is It Worth It?
What Is Rakuten?
First things first, WTF is Rakuten , even (and how do I pronounce it)?
Rakuten (pronounced “ra·kuh·ten”) is one of the World’s largest online sales portals, partnering with merchants of every sort and offering their customers coupons and cash back for purchases made through the site or thorough the free app. At any given moment, their site offers deals on hundreds of merchants, the likes of which you are likely already making purchases (think Best Buy, Macy’s, Samsung, to name a few), and allows you (the shopper) to easily leverage those deals with no additional cot to you. In other words: Free Money.
How Does Rakuten Work?
If your immediate thought “there is no such thing as free money”, good for you. The term is as equally suspicious to me. How Rakuten operates is pretty simple: They partner with major retailers, receiving commission for sales made through their platform. The commissions allow them to offer cash back (anywhere from 1-20%) to the consumers which, in turn, drives more traffic and earns more commission. The retailer gets additional sales, Rakuten gets additional commission, the consumer (you) get savings on items you would have been purchasing in the first place. The only stipulation being that you access the retailer through Rakuten instead of directly.
Rakuten then pays the consumer, quarterly, based on the purchases they made in the past period.
Rakuten + Amex
Traditionally, Rakuten’s cashback has been via a check sent or through PayPal. However recently, Rakuten has partnered with Amex to deliver the cash back instead as Membership Rewards (MR) points, directly deposited into the Amex account of the buyer. Savvy travelers, aware that if redeemed correctly, Amex MRs can yield a value far higher than that of the cash deposit, have jumped on the chance to connect the two. The best part is, once you’ve connect your Amex to Rakuten, ANY purchase you make (regardless of your payment method) is eligible, so this opportunity is fantastic for stacking. Additionally, Rakuten offers a free app and browser extension to make the process even easier.
WBW Pro Tip: If having trouble deciding between cash back or Amex Membership Rewards, remember…MRs are valued at $0.02/each (source The Points Guy). That is 100% higher than the value of the cash you would receive if you opted for check or PayPal.
For Instance
- I connect my Amex Platinum to Rakuten
- On the Rakuten website, I find a 10% back offer on Walmart purchases
- I follow the link and spend $100 on eligible Walmart items
- I pay with my Chase Freedom Flex (which currently has 5% back on Walmart purchases)
- I will receive 1000 Amex MRs (valued at $0.02/each) + 500 Chase Ultimate Rewards (valued at $0.02/each) = a value of $30.
- Note: receiving cash via check or PayPal for the same transaction would $10 cash + 500 Chase Ultimate Rewards = a value of $20
How Do I Sign Up
You can sign up for Rakuten HERE. There is currently (until 12/1) a $40 bonus for using that referral link (plus you will be supporting this site (thank you!). You can also apply for an Amex Platinum HERE.
Once you sign up, you can go to “My Wallet” and add you eligible Amex Card, and start pulling in the Membership Rewards.
Also, be sure to download the browser extension to make shopping through Rakuten even easier.
Is It Worth It?
This deal is not only worth it, it is a no brainer. For a few minutes of sign up time, you will see massive returns. I do most of my standard shopping utilizing my Chase Trifecta do to it’s explosive rewards earning potential. As such my Amex is reserved typically for its benefits and frequent bonus rewards. Adding it to Rakuten has been a great way to exponentially increase earning, while still using (and stacking with) my Chase Cards. If you own an Amex, this is a must do. If you do not own an Amex, this is another reason to consider one.
Thanks for reading, and feel free to comment below with any great stacks you’ve accomplished in your hunt for rewards.
