Table of Content
Table of Contents
What is Rakuten & Why Should You Care?
Getting paid to shop online isn’t a gimmick—it’s reality.
Rakuten (formerly known as Ebates) is a cash back shopping portal that rewards you with actual money for purchases you’re already making. Think of it as the ultimate shopping hack that puts real cash back in your pocket with minimal effort.
In today’s economy, where every dollar counts, Rakuten offers a straightforward way to save on everything from everyday essentials to luxury splurges. Whether you’re an occasional online shopper or someone who makes frequent purchases, Rakuten’s model is designed to benefit you by returning a percentage of your spending directly to your wallet.
If you’re skeptical about whether Rakuten is too good to be true, you’re not alone—many new users wonder if there’s a catch. Rest assured, Rakuten is completely legitimate, and I’ll explain exactly how it works in the next section.
How Rakuten Actually Works (The Nitty-Gritty & Business Model)
Understanding Rakuten’s business model helps explain why they can afford to pay you cash back on your purchases.
The Simple User Journey
- You visit Rakuten before shopping online
- You click through to your desired retailer’s website
- Rakuten places a tracking cookie on your browser
- You make your purchase as normal
- The retailer pays Rakuten a commission for sending them a customer
- Rakuten shares a portion of that commission with you as cash back
It’s essentially a win-win-win scenario. The retailer gets sales they might not have otherwise received, Rakuten earns commission fees, and you get cash back on purchases you were planning to make anyway.
The Business Model Explained
Think of Rakuten as a matchmaker between you and thousands of stores. Retailers are constantly looking for new customers and are willing to pay for them through affiliate marketing programs. When Rakuten sends a shopper to a store’s website and that person makes a purchase, the store pays Rakuten a finder’s fee (typically 5-15% of the purchase amount).
Rather than keeping the entire commission, Rakuten’s business model revolves around sharing a portion of this fee with you—the shopper—in the form of cash back. This transparent approach has allowed Rakuten to build a loyal user base of millions who start their shopping journey through the platform.
The cash back you receive comes entirely from the store’s marketing budget. It doesn’t increase the price you pay, and the retailer still makes their profit. Rakuten simply redirects some of the money that would otherwise be spent on traditional advertising back to consumers.
Is Rakuten Legit, Safe, and Worth Your Time?
One of the most common questions about Rakuten is whether it’s legitimate. With promises of “free money,” it’s natural to be skeptical.
Legitimacy Proof
Rakuten is unquestionably legitimate. Here’s the evidence:
- Established History: Founded in 1998 as Ebates, the company has over 25 years of operation.
- Corporate Backing: In 2014, Ebates was acquired by Japanese e-commerce giant Rakuten Group for $1 billion and later rebranded to Rakuten.
- Massive User Base: Over 15 million active members in the United States alone.
- Better Business Bureau Rating: Rakuten maintains an A+ rating with the BBB.
- Actual Payouts: The company has paid over $1 billion in cash back to members since its founding.
Safety Considerations
Rakuten takes user privacy and security seriously:
- Data Protection: Rakuten employs industry-standard encryption and security measures to protect your personal and financial information.
- Limited Information Required: To use Rakuten, you only need to provide basic information like your email address and payment preferences.
- Transparent Privacy Policy: Their privacy policy clearly outlines how your data is used and protected.
Is Rakuten Worth Your Time?
The value proposition of Rakuten depends on your shopping habits:
- High-Volume Online Shoppers: If you regularly shop online, especially for big-ticket items, Rakuten can generate significant savings with minimal effort.
- Occasional Shoppers: Even if you only shop online occasionally, the effort-to-reward ratio is still favorable since installing the browser extension automates most of the process.
- Time Investment: The initial setup takes less than 5 minutes, and ongoing use requires virtually no additional time compared to your normal shopping routine.
For most people, the answer is clear: Yes, Rakuten is worth the minimal time investment required to earn cash back on purchases you’re already making.
Getting Started with Rakuten (Step-by-Step Guide)
Setting up your Rakuten account and maximizing your cash back opportunities is straightforward. Here’s how to get started:
1. Sign Up for a Rakuten Account
The sign-up process is quick and rewarding:
- Visit Rakuten and click “Join Now”
- Enter your email address and create a password
- Complete your profile with basic information
- Choose your preferred payment method (PayPal or check)
Pro Tip: New members currently receive a $30 welcome bonus after making qualifying purchases of $30 or more within 90 days of sign-up. Sign up here to claim this offer.
2. Install the Rakuten Browser Extension
This is arguably the most important step for maximizing your cash back:
- Visit the Rakuten extension page or find it in your browser’s extension store
- Click “Add to Chrome” (or your preferred browser)
- Follow the prompts to complete installation
- Pin the extension to your toolbar for easy access
The browser extension automatically alerts you when you’re on a website that offers cash back through Rakuten and activates the offer with a single click.
3. Download the Rakuten Mobile App
The mobile app allows you to earn cash back when shopping on your smartphone or tablet:
- Search for “Rakuten” in the App Store or Google Play Store
- Download and install the free app
- Log in using your Rakuten account credentials
- Enable notifications to receive alerts about special offers
4. Link a Credit Card for In-Store Cash Back
To earn cash back when shopping in physical stores:
- Log into your Rakuten account
- Navigate to “In-Store Cash Back” section
- Add and verify your credit or debit card
- Browse available in-store offers
- Link offers to your card before shopping
When you make purchases at participating stores using your linked card, the cash back is automatically credited to your Rakuten account.
Maximizing Your Rakuten Cash Back (Actionable Strategies)
Once you’re set up with Rakuten, these strategies will help you maximize your earnings:
Browser Extension Power Moves
The Rakuten browser extension is your secret weapon for effortless cash back:
- Automatic Alerts: The extension notifies you whenever you visit a site offering Rakuten cash back.
- One-Click Activation: Simply click the popup notification to activate cash back—skip this step and you’ll miss out on rewards.
- Coupon Auto-Apply: The extension automatically tests and applies available coupon codes during checkout to maximize your savings.
- Comparative Shopping: It shows you if the same item is available elsewhere for a better price.
Remember: Always verify that the extension shows “Cash Back Activated” before completing your purchase. This is the most common reason people miss out on potential earnings.
Mobile App Mastery
The Rakuten app turns your smartphone into a cash back machine:
- Shop Through the App: Browse retailers directly within the app to ensure your cash back is tracked.
- In-Store Offer Activation: Access and activate in-store offers before shopping.
- Barcode Scanner: Scan products while shopping to compare prices and cash back rates across retailers.
- Location-Based Alerts: Receive notifications about nearby in-store cash back opportunities.
In-Store Cash Back Tactics
Don’t miss out on cash back for physical shopping:
- Pre-Shopping Ritual: Always check Rakuten before heading to stores.
- Link Multiple Cards: Add all your payment cards to capture every eligible purchase.
- Combine with Store Loyalty Programs: In-store cash back works alongside store rewards programs.
- Receipt Verification: Some in-store offers may require uploading your receipt—keep them until your cash back is confirmed.
Double Cash Back and Special Promotions
Timing your purchases can significantly increase your earnings:
- Double Cash Back Events: Rakuten regularly offers double (or even triple) cash back at select retailers. These promotions typically occur during major shopping holidays like Black Friday and Cyber Monday.
- Rakuten Hot Deals: Check the “Hot Deals” section daily for limited-time increased cash back offers.
- Email Alerts: Subscribe to Rakuten’s promotional emails to be notified of special cash back events.
- Seasonal Bonuses: Look for category-wide cash back boosts during seasonal shopping periods.
Referral Program Benefits
Sharing Rakuten with friends and family can be lucrative:
- Referral Bonuses: Currently, you can earn $30 for each friend who signs up through your referral link and makes qualifying purchases.
- Your Personalized Link: Share your unique referral link (like this one) via email, social media, or text message.
- No Referral Limit: There’s no cap on how many people you can refer or how much you can earn from referrals.
The Rakuten Cash Back Visa Credit Card
For power users, the Rakuten Cash Back Visa offers additional benefits:
- Extra 3% Cash Back: Earn an additional 3% cash back on all Rakuten purchases when using this card.
- 1% Cash Back Elsewhere: Earn 1% cash back on all non-Rakuten purchases.
- No Annual Fee: The card has no annual fee, making it a low-risk addition to your wallet.
- Automatic Cash Back: All card earnings are automatically added to your quarterly Rakuten payout.
This card makes the most sense for frequent Rakuten users who can benefit from the additional 3% cash back on top of regular Rakuten rates.
Cash Back Stacking Strategies
The ultimate way to maximize savings is by stacking multiple discount methods:
| Strategy | Compatible with Rakuten? | Notes |
|---|---|---|
| Store Coupons | ✅ Yes | Both Rakuten’s automated coupons and store-specific codes typically work with cash back |
| Store Loyalty Programs | ✅ Yes | Points from Sephora, Kohl’s, etc. can be earned alongside cash back |
| Credit Card Rewards | ✅ Yes | Your regular credit card points/miles stack with Rakuten cash back |
| Retailer-Specific Cash Back Apps | ⚠️ Sometimes | May cause tracking issues; best to use one or the other |
| Price Matching | ✅ Yes | Store price matching policies generally don’t affect cash back |
| Gift Cards | ⚠️ Sometimes | Purchases made entirely with gift cards often don’t qualify for cash back |
Advanced Stack Example: Shop through Rakuten for 8% cash back at Macy’s, use Macy’s coupon code for 20% off, earn Macy’s Star Rewards points, and pay with a 2% cash back credit card—that’s four layers of savings on one purchase!
Getting Paid: Understanding the Rakuten Payment Process
Knowing when and how you’ll receive your cash back is important for planning your finances.
Payment Methods
Rakuten offers two primary ways to receive your cash back:
- PayPal: Cash back is deposited directly to your linked PayPal account.
- Big Fat Check: A physical check mailed to your address on file.
- Direct Deposit: Cash back deposited directly to your bank account (recently added option).
To select or change your payment method:
- Log into your Rakuten account
- Go to “Account Settings”
- Select “How would you like to get paid?”
- Choose your preferred method
Payment Schedule (Quarterly Payouts)
Rakuten operates on a quarterly payment cycle known as the “Big Fat Check” schedule:
| Shopping Period | Payment Date |
|---|---|
| Jan 1 – Mar 31 | May 15 |
| Apr 1 – Jun 30 | Aug 15 |
| Jul 1 – Sep 30 | Nov 15 |
| Oct 1 – Dec 31 | Feb 15 |
Important Requirements:
- You must have earned at least $5.01 in cash back during the quarter to receive a payment.
- If your balance is below $5.01, it rolls over to the next quarter until you reach the minimum threshold.
Troubleshooting Missing Cash Back
If you don’t see expected cash back in your account:
- Verification Period: Most cash back appears in your account within a few days but isn’t finalized until the store confirms the purchase (typically 30-90 days after purchase).
- Common Reasons for Missing Cash Back:
- The extension wasn’t activated before completing checkout
- You used a different coupon site or cash back service
- The specific items purchased weren’t eligible for cash back
- You returned the merchandise
- Resolution Process:
- Wait at least 7 days for the cash back to appear as “Pending”
- If missing, submit a “Where’s My Cash Back?” request within the Rakuten website
- Provide your order number and purchase details
- Rakuten’s support team typically responds within 5 business days
Rakuten Pros and Cons (Balanced View)
Like any service, Rakuten has its advantages and disadvantages:
Pros
- Free Money: Earn cash back on purchases you’d make anyway
- Wide Store Selection: Over 3,500 participating retailers
- User-Friendly Interface: Easy-to-use website, browser extension, and app
- Legitimate Business Model: Transparent about how they make money
- Welcome Bonus: Generous sign-up bonus for new users
- Coupon Integration: Automatically applies best available coupons
- In-Store Options: Cash back available at physical locations, not just online
- Quarterly Payments: Regular, predictable payment schedule
Cons
- Quarterly Payment Schedule: Waiting up to three months for payment
- Activation Required: Must remember to activate cash back before shopping
- Minimum Payout Threshold: Need at least $5.01 to receive payment
- Tracking Issues: Occasional problems with cash back not being tracked
- Purchase Temptation: May encourage unnecessary spending
- Limited Categories: Some product categories are excluded from cash back
- Variable Rates: Cash back percentages can change frequently
- Restricted Returns: Returning items voids the cash back earned
Rakuten vs. Competitors (Brief Overview)
The cash back landscape is competitive, but Rakuten holds its own against alternatives:
| Service | Strengths | Weaknesses | Best For |
|---|---|---|---|
| Rakuten | Wide store selection, easy interface, in-store options | Quarterly payments | General online shopping, fashion |
| TopCashback | Often higher rates, no minimum payout | Less user-friendly interface | Maximizing cash back percentages |
| Honey | Strong coupon focus, Amazon integration | Lower cash back rates | Coupon hunters, Amazon shoppers |
| Capital One Shopping | Price comparison, automated alerts | Limited store selection | Price comparisons, occasional shoppers |
| Ibotta | Strong grocery focus, quick payments | More effort required | Grocery and in-store shoppers |
Rakuten’s primary advantages are its ease of use, broad store coverage, and reliability. While competitors may offer higher rates for specific stores, Rakuten provides the most well-rounded experience for most shoppers.
Frequently Asked Questions About Rakuten
How does Rakuten make money?
Rakuten earns commissions from retailers when they refer customers who make purchases. They share a portion of these commissions with you as cash back, keeping the remainder as their profit.
Is Rakuten free to use?
Yes, Rakuten is completely free. There are no membership fees, hidden charges, or costs associated with using the service or receiving your cash back.
How long does it take to receive cash back?
Cash back typically appears in your Rakuten account within a few days as “pending.” It becomes “approved” once the retailer confirms the purchase (usually 30-90 days after purchase). You then receive payment according to the quarterly schedule.
What happens if I return an item?
If you return an item, the cash back associated with that purchase will be deducted from your Rakuten account. This is why cash back isn’t considered “final” until after the retailer’s return period has elapsed.
Can I use Rakuten on Amazon?
The situation with Amazon is complicated. While Amazon doesn’t generally participate in Rakuten’s cash back program, Rakuten occasionally offers cash back for specific Amazon categories or during special promotions. The browser extension will alert you when Amazon cash back is available.
Is Ebates the same as Rakuten?
Yes, Ebates and Rakuten are the same company. Ebates was founded in 1998 and acquired by Rakuten Group in 2014. In 2019, the company rebranded from Ebates to Rakuten, but the service and business model remain essentially the same.
What’s the catch with Rakuten?
There isn’t a traditional “catch” with Rakuten. The service is genuinely free, and the cash back is real. The main considerations are: 1) You need to remember to activate cash back before shopping, 2) You have to wait for quarterly payments, and 3) The service might encourage more shopping than you’d otherwise do.
Does Rakuten sell my personal information?
According to Rakuten’s privacy policy, they do not sell your personal information to third parties. They do collect data about your shopping habits to improve their service and may share anonymized, aggregated data for marketing purposes.
Can I have multiple Rakuten accounts?
Rakuten’s terms of service allow only one account per person. Creating multiple accounts to claim multiple welcome bonuses violates their terms and may result in account termination.
How do I contact Rakuten customer service?
Rakuten offers customer support through:
- Email: support@rakuten.com
- Phone: 1-800-800-9090 (Monday-Friday, 6am-6pm PT)
- Live Chat: Available on their website during business hours
Conclusion: Is Rakuten Right for You?
After exploring all aspects of Rakuten’s cash back program, the value proposition is clear for most online shoppers. If you regularly shop online, using Rakuten is essentially leaving free money on the table.
The service is particularly valuable for:
- Frequent online shoppers
- Those who make large purchases occasionally (electronics, furniture)
- Deal hunters who already look for ways to save
- People who shop at major retailers that offer high cash back percentages
The minimal effort required—primarily installing the browser extension and remembering to activate offers—delivers a significant return relative to the time investment.
For maximum benefit, combine Rakuten with other money-saving strategies: use cash back credit cards, take advantage of store sales, and be thoughtful about your purchases rather than buying things just for the cash back.
Ready to start earning cash back on your online shopping?
Sign up for Rakuten here and claim your $30 welcome bonus after making your first qualifying purchase of $30 or more.
Remember that the true value of Rakuten comes from earning cash back on purchases you were already planning to make—it’s not a reason to spend more, but rather a way to get more value from your necessary spending.
This post contains affiliate links. If you sign up for Rakuten using my referral link, I may receive a referral bonus at no additional cost to you.
