If you’ve ever looked for ways to save money while shopping, you’ve probably come across Rakuten and its cashback benefits. But how exactly does Rakuten work, and is it truly worth your time?
In this comprehensive Rakuten review, I’ll break down how the platform has helped me save money and share my personal insights. You’ll see just how impactful Rakuten can be for budget-conscious shoppers looking to maximize their savings.
Table of Contents
What is Rakuten?
Rakuten, formerly known as Ebates, is a cashback platform that partners with thousands of retailers to offer users a percentage of their purchases back in cash. Whether you shop online, in-store, or through the app, Rakuten provides an opportunity to save money effortlessly.
The premise is simple but powerful: shop as usual and get rewarded for doing so. With over 3,500 stores, including popular retailers like Amazon, Walmart, Target, and Macy’s, Rakuten makes it incredibly easy to save money while shopping for things you already need.
How Does Rakuten Work?
Rakuten operates through affiliate marketing. When you make a purchase through their platform, Rakuten earns a commission from the retailer and shares a portion of that commission with you as cashback. Here’s a step-by-step breakdown:
- Sign Up
- Creating an account is free. All you need is an email and password, or you can sign up using your Facebook or Google account. The process is quick and easy, making it accessible to everyone.
- Tip: Maximize your savings with Rakuten’s sign-up bonus—earn extra cashback just for joining and making a qualifying purchase!
- Shop Through Rakuten’s Website or App
- Log in to Rakuten, search for your favorite store, and click the link to activate the cashback offer. It’s as easy as clicking through Rakuten to visit the store.
- For example, if you’re shopping on Adidas’s website via Rakuten, you could earn up to 8% cashback on your purchase.
- In-Store Shopping
- Link your credit or debit card to Rakuten to earn cashback on eligible in-store purchases. This feature is perfect for those who prefer shopping at brick-and-mortar stores.
- For example, you can activate an offer for a local restaurant and earn up to 10% cashback after dining. It’s seamless and works just like online shopping.
- Earn Cash Back
- When you shop through a Rakuten link or use your linked card, you’ll automatically earn cashback—a percentage of your total purchase. The rate varies by retailer, typically ranging from 1% to as much as 15% during special promotions.
- Get Paid
- Once the retailer confirms your purchase, Rakuten credits the cashback to your account. Payments are made quarterly via check or PayPal, and you’ll need to earn at least $5 to receive a payout. While the wait may seem long, the satisfaction of receiving a “Big Fat Check” makes it worth it.
Why is it free?
Rakuten makes money by driving traffic to retailers, who pay a commission for each sale. This is why Rakuten is free for users. It’s a win-win situation: retailers get customers, Rakuten earns a cut, and users receive cashback. With no hidden fees or costs, users can trust the platform’s legitimacy.
Popular Cashback Categories
One of Rakuten’s biggest strengths is its variety of cashback categories. Let’s explore some of the most popular ones:
1. Travel
Planning a trip? Rakuten offers cashback on flights, hotels, and car rentals. Travel enthusiasts can save hundreds of dollars annually by booking through Rakuten.
- Earn up to 10% cashback on Expedia bookings. Imagine saving $100 on a $1,000 hotel stay.
- Save on travel essentials with cashback from retailers like Samsonite, making trips more affordable and stress-free.
2. Health & Beauty
Skincare and beauty lovers will find plenty of deals. The health and beauty category is one of the most sought-after on Rakuten. For instance, Sephora often offers up to 4% cashback on purchases. Combine this with sales events to maximize your savings.
3. Groceries
With rising food prices, every dollar counts. Rakuten partners with grocery delivery services like Instacart, helping you earn cashback while stocking your pantry. Imagine earning cashback on essentials you’d buy anyway.
4. Footwear and Apparel
From sneakers to suits, Rakuten’s apparel category consistently offers high cashback rates. Seasonal sales like Black Friday or Boxing Day often bring double cashback deals, making it the perfect time to shop for wardrobe upgrades.
5. Events & Entertainment
Love live concerts or theater? Rakuten users can earn cashback on ticket purchases for events, making memorable experiences more budget-friendly. It’s another way Rakuten turns spending into saving.
My Personal Experience
When I first discovered Rakuten, I was skeptical—it sounded too good to be true. Getting paid for shopping I was already doing? However, after using it for several years, I’ve developed a solid opinion about the platform. Here are the pros and cons of Rakuten based on my experience.
Pros of Using Rakuten
1. Free to Use
Rakuten is completely free to sign up for and use. There are no hidden costs or membership fees, making it accessible to anyone who wants to save money without hassle.
2. Cash Back on Everyday Purchases
Rakuten makes saving money incredibly easy. You can earn cashback on a wide range of items, from clothes and electronics to groceries and even travel bookings. For example, I recently saved over $100 on a hotel booking through Expedia via Rakuten—it felt like a win for doing nothing extra.
3. Easy to Use
Rakuten’s website, app, and browser extension are designed to make earning cashback seamless. Whether you’re shopping on your desktop or mobile device, the process is intuitive and quick.
4. User-Friendly Browser Extension
The browser extension is a game-changer for online shopping. It automatically alerts you when cashback is available on a site you’re browsing, ensuring you never miss an opportunity to save. For example, it once reminded me to activate cashback while shopping for shoes, saving me from missing out on rewards.
5. Reliable Payouts
Rakuten delivers quarterly payouts on time. Receiving that “Big Fat Check” in my PayPal account always feels like a mini-reward for smart shopping.
6. Great for Big Purchases
Rakuten shines when it comes to large purchases. For example, I earned $40 cashback on a laptop, which helped offset part of the cost. It’s an easy way to save on big-ticket items without needing coupon codes.
7. Wide Range of Retailers
With over 3,500 stores, Rakuten offers cashback at a diverse range of retailers. From groceries to electronics and big-name stores like Amazon and Sephora, there’s something for everyone.
8. Stackable with Other Rewards
You can combine Rakuten with credit card rewards and coupon codes for even more savings. This makes it a powerful tool for maximizing cashback and points on your purchases.
Cons of Using Rakuten
1. Delayed Cashback on Certain Purchases
While most cashback is credited quickly, travel bookings can take months to process. For instance, it took over 90 days for cashback from a hotel booking to appear in my account. If you prefer immediate gratification, this delay might feel frustrating.
2. Minimum Payout Threshold and Quarterly Payouts
The minimum payout threshold of $5 is low, but if you don’t reach it within a quarter, you’ll have to wait another three months to get paid. It’s not a big deal, but it can be disappointing if you’re expecting your cashback sooner.
3. In-Store Cashback Limitations
While the in-store cashback option is useful, it’s not as widely available as online deals. For instance, I tried linking my card for a local grocery store offer, but it wasn’t eligible. This feature has potential but needs to expand to be more effective.
4. Not All Purchases Qualify
Some items or categories are excluded from cashback. For example, I didn’t earn cashback on a gift card purchase, which I only realized after reading the fine print. Always check the retailer’s terms to ensure you know what qualifies for cashback.
5. Occasional Tracking Issues
There have been times when my cashback didn’t track properly. I had to contact customer service to resolve the issue, which, while effective, required extra effort. It’s not a dealbreaker but something to keep in mind if you’re expecting significant cashback amounts.
6. Limited Options for International Shoppers
Rakuten is primarily available to U.S. and Canadian shoppers. International users may have fewer retailer options, which can limit the cashback opportunities for those outside these regions.
How to Maximize Rakuten Cashback
To get the most out of Rakuten, here are a few tips:
1. Use the Mobile App and Link Your Credit Card
Rakuten’s mobile app, available for both iOS and Android, is your all-in-one tool for maximizing cashback rewards. It offers exclusive deals, real-time notifications about limited-time offers, and a convenient way to shop on the go. With the app, you can easily browse your favorite stores, track your cashback balance, and unlock special in-app promotions—all from one place.
2. Install the Rakuten Browser Extension
The Rakuten browser extension is one of its most convenient features. It simplifies earning cashback by automatically alerting you when a site you’re browsing offers cashback through Rakuten.
Here’s how it works:
- Install the extension on your browser (compatible with Chrome, Firefox, Safari, and Microsoft Edge).
- Visit a retailer’s website, and the extension will notify you if cashback is available.
- Simply click the button to activate the cashback offer, and you’ll earn cashback automatically as you shop!
I’ve found the browser extension to be a game-changer. On several occasions, I’ve almost missed cashback opportunities because I forgot to start my shopping through Rakuten’s website. But with the extension, I’m always reminded to activate cashback before completing a purchase.
For example, while shopping online for clothes, the extension reminded me of an available cashback offer, helping me save money I might have otherwise missed. It’s a must-have tool for ensuring you never leave savings on the table.
3. Link Your Card for Dining
Rakuten offers a lesser-known perk: earning cashback while dining out. To take advantage of this, simply link your credit card to Rakuten and activate offers at participating restaurants. It’s a straightforward way to save while enjoying your favorite meals.
4. Link Your Credit Card for In-Store Cashback
If you prefer shopping at brick-and-mortar stores, Rakuten has you covered. By linking your credit card to your Rakuten account, you can earn cashback on in-store purchases at participating retailers, making it just as rewarding as shopping online. This feature extends your savings beyond online shopping, making Rakuten even more versatile.
5. Use Rakuten for Travel
Rakuten is also an excellent tool for saving on travel expenses. Before booking flights, hotels, or car rentals, always check Rakuten for cashback offers. Travel-related bookings often provide some of the highest cashback rates, giving you the chance to save big on your next vacation.
6. Double Cashback Days
Rakuten frequently runs promotions where selected retailers offer double or even triple cashback. Keep an eye on Rakuten’s “Double Cashback” events, as they temporarily boost cashback rates, giving you an excellent opportunity to maximize your savings.
7. Keep an Eye on Special Sign-up Incentives
Rakuten often runs limited-time promotions with bonus cashback or exclusive sign-up incentives. Make sure to take advantage of these offers to boost your savings and maximize your rewards.
8. Credit Card Stacking with Rakuten
One of my favorite strategies for maximizing savings with Rakuten is “credit card stacking”. This involves using Rakuten alongside other cashback or reward programs to layer your savings. For instance, if you shop through Rakuten using a cashback credit card, you’ll earn rewards from both Rakuten and your card.
You can further boost your savings by combining Rakuten with coupons, promo codes, and sales. Unlike some cashback platforms, Rakuten lets you apply discounts while still earning cashback. This means you’re saving money upfront and earning cashback on top of it—perfect for holiday sales!
For example, during a holiday sale, you could earn cashback while using a 20% off coupon. Add in the rewards from your cashback credit card, and the combined savings are tough to beat.
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My Rakuten Savings Journey: How Much Did I Save?
As someone who loves saving money, I’ve been using Rakuten for several years, and it’s been such a rewarding experience! One of my favorite wins was purchasing the Dyson Purifier Hot+Cool purifying fan heater (HP07 in Black/Nickel). It was on sale for CAD $649.99, marked down from the original price of CAD $899.99. To make the deal even sweeter, Rakuten was offering 5% cashback at the time—way higher than their usual 2.5%. That earned me an extra CAD $32.50 in cashback, on top of the discount. What a steal!
Another standout moment was when I snagged a Dell Alienware 25 Gaming Monitor (AW2523HF). It was on sale for CAD $429.99, down from CAD $499.99. Thanks to a holiday promotion, Rakuten’s cashback rate had jumped from 2% to 4%, which earned me an additional CAD $17.2 in cashback. In total, I saved CAD $87.2 on that purchase alone—definitely a sweet deal!
Over the past years, Rakuten has helped me earn hundreds of dollars in cashback from everyday purchases like groceries, clothes, and household essentials. It’s so satisfying to know I’m getting rewarded for shopping I’d already be doing anyway.
Rakuten vs. Other Cashback Apps
While Rakuten is one of the most popular cashback platforms, there are several others out there, like Honey, Swagbucks, and Ibotta. So, how does Rakuten compare?
- Rakuten vs. Honey
Honey is a browser extension that helps you find and apply coupon codes when shopping online. While it’s great for saving money with coupons, Honey doesn’t offer cash back like Rakuten does. So, if you’re looking for both coupons and cash back, Rakuten is the better option. - Rakuten vs. Swagbucks
Swagbucks is another popular cashback platform that also offers ways to earn rewards by taking surveys, watching videos, and more. While Swagbucks is more versatile in terms of earning opportunities, Rakuten is better for pure cash back on shopping. If you’re focused on earning cash back for your purchases, Rakuten is more straightforward and easier to use. - Rakuten vs. Capital One Shopping
Capital One Shopping is a browser extension that helps you find coupon codes and compares prices to ensure you’re getting the best deal. While it’s a great tool for price-savvy shoppers, it doesn’t offer cashback rewards like Rakuten. If your goal is to save money through both coupons and cashback, Rakuten stands out as the better choice for maximizing your savings.
FAQs About Rakuten
Is Rakuten Legit?
Yes, Rakuten is absolutely legit. It’s been around since 1999 and has paid out over $1 billion in cashback to its members.
Rakuten is trusted by millions of users and partners with some of the largest retailers in the world. They also offer excellent customer service if you ever run into any issues. Additionally, Rakuten has impressive ratings: 3.8/4 on the Apple Store and 3.6/4 on the Google Play Store.
Does Rakuten Sell My Data?
Rakuten uses aggregated data to understand shopping trends but doesn’t sell individual user information. This ensures your personal details are secure.
Do I Need a Special Rakuten Credit Card?
No, you don’t need a special Rakuten credit card. You can link any credit or debit card to the Rakuten app and earn cashback on in-store purchases at selected retailers.
Final Thoughts
Rakuten is an easy and hassle-free way to earn cashback on your everyday purchases. Whether you’re shopping online or in-store, Rakuten’s extensive list of retailers makes it simple to save on things you’re already buying. With its user-friendly interface, helpful browser extension, and the ability to stack savings with other rewards programs, Rakuten is a must-have tool for any savvy shopper.
Ready to start saving? Sign up, install the extension, and watch the cashback roll in! Click here to sign up for free and start saving today!
