Last Updated on January 24, 2025 by Andrew Shih
Are you curious about how does Rakuten work? Maybe you have heard it is an excellent way to earn a little extra beer money or even make it a side hustle. Perhaps you are wondering, is Rakuten legit? In this Rakuten review, we take a closer look at how it all works and share our experience.
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What is Rakuten?
Rakuten is an online rebate program that offers cashback on purchases from over 3500 online retailers. It used to be known as Ebates. They have formed relationships with major brands and retail stores to provide you with discounts in the form of cashback bonuses.
The rebate company has done its best to make the process simple for the consumer. The simplicity is reflected in the company’s motto – Shop. Earn. Get Cash Back. The simple motto reflects just how easy the process can be.
How does Rakuten work?
Rakuten works by acting as a middleman between you and its partner retailers. Here’s how it works step by step:
- Sign Up for Rakuten: Creating an account is free and takes just a few minutes. You can sign up on the Rakuten website, app, or through their browser extension.
- Find Cashback Offers: Browse through thousands of cashback deals on Rakuten’s website or app. You can also activate deals automatically while shopping using the Rakuten browser extension, which notifies you of eligible offers.
- Make a Purchase: Click on the deal or activate it through the extension to be redirected to the retailer’s site. Complete your purchase as usual, and Rakuten will track the transaction.
- Earn Cashback: Once the retailer confirms your transaction, cashback is credited to your Rakuten account. The confirmation period can vary but usually takes a few days to a few weeks.
- Get Paid: Rakuten issues payments quarterly. You can receive your cashback through PayPal, a mailed check, or even as a gift card. The minimum payout threshold is just $5.01.
This seamless process eliminates the need to manually track rewards, making Rakuten one of the easiest ways to save money.
How to Save Money with Rakuten?
There are three ways to use Rakuten and save money
- Shop from the Rakuten website
- Shop with Rakuten Chrome extension
- Use the Rakuten app on a mobile device.
In order to get credit for the percentage cashback, you must begin your shopping trip from the Rakuten website or have the browser extension installed on your computer.
The information about your purchase is sent back to Rakuten. The percentage will be automatically calculated and tracked by Rakuten. Your reward will appear in your account, usually within 1 or 2 days. You will receive payment of your rebates quarterly by check or Paypal. It’s an easy way to earn cash back on purchases! They even offer some extra perks like special promotions, a signup bonus offer, and a friend referral bonus.
How to earn Rakuten cashback
Step 1: Start with Rakuten
To start with Rakuten, you will need to create an account and complete the necessary personal information. When you sign up, Rakuten will even give you a Welcome Bonus gift card for $10 after you spend your first $25 using the site.
Step 2: Shop as usual
Depending on your personal preference, Rakuten offers three ways you can shop and earn rewards. You can start shopping on the Rakuten website. If you are a mobile person, you can use the Rakuten app. Or, you can use the Rakuten Chrome extension. We will discuss each of the methods in more detail below.
Step 3: Get Paid
Earning Rakuten cashback is easy. Once your reward is more than $5, Rakuten will deposit your PayPal or send you a big fat check on a quarterly schedule. There are no hidden fees or transaction fees; what you earn is what you get.
Shop from Rakuten website
On the Rakuten website, you can search for cashback stores, coupons, and products. Special offers and promoted stores will also be visible on the home page.
If you find a deal that appeals to you, then you can click on it to learn more. Each store is shown with the cashback offer that is currently available.
For example, this week at Clinique, shoppers will earn 8% cashback on any purchase. When you click the Clinique offer, you will be directed to a page that tells you about any special terms and offers. You will also see a “Shop Now” button. When you click the “Shop Now” button, you will see a Rakuten pop-up telling you that you are about to receive 8% cashback. Then it will take you to the store’s website. You will do your shopping and make your purchase. That’s pretty much it!
All Stores
Under the “All Stores” category, all stores are well organized into popular categories – closing, travel, health & beauty, shoes & handbags, electronic & office, home, auto, pets, baby/kids, toys, sports, food & entertainment, and more. Under each category, you can see the eligible stores and savings.
Double Cash Back Stores
Double cashback stores are featured stores with special seasonal discounts for a limited time. It means extra savings for you if you happen to need to purchase items in the store.
Hot Deals
Under the hot deals section, you will find time-sensitive Rakuten coupons, promo codes, and daily deals. You can get great savings here if you can apply additional coupon codes on top of regular Rakuten cashback.
Travel and Vacation
If you book travel and vacation through Rakuten, you can get extra savings too. During our Rakuten review, if you book your trip with Priceline through Rakuten, you can get up to 4% savings. A typical travel package will cost hundreds or thousands of dollars, so a small percentage of savings can yield a good chunk of cash. Be sure to read the offers in detail and know the exclusions.
Shop with Rakuten Chrome extension
If you do not want to always start shopping from Rakuten website, using the Rakuten Chrome extension may offer you the most seamless experience. All you have to do is install the Rakuten Chrome extension, make sure it is not blocked by a popup blocker, and let it do all the savings for you.
You just head straight to your favorite online stores as usual, and the Rakuten Chrome extension will display a popup for you to activate the savings if it is a Rakuten-affiliated store. If you plan to shop in the online store, simply activate the savings. You don’t ever have to worry about missing out on savings.
The Rakuten Chrome extension will let you know the savings directly from your Google search. You will see Rakuten eligible stores and rebate percentages in the Google search. It’s a convenient way to let you know what you could be saving without having to visit the site or discover it directly from the Rakuten website.
Shop using Rakuten mobile app
If you do most of the shopping on phone or mobile device, you can install the free Rakuten app for Apple and Andriod devices. The shopping experience is similar to shop on the Rakuten website but more personalized with your favorite and recently visited stores, similar stores, double cash stores, popular and trending stores. There is also app-exclusive cashback only available on mobile apps.
More ways to save with Rakuten
Rakuten Credit Card
If you want even extra savings when you shop on Rakuten, you may want to consider getting a Rakuten credit card. You can earn an extra 3% cashback with Rakuten Cash Back Visa credit card with Rakuten-eligible online and in-store purchases. You will also get 1% everywhere else Visa is accepted. Also, you will get a $10 bonus when you make your purchase using the credit card with no minimum purchase requirement.
In-store cash back
You can also get savings when you shop in-store that are affiliated with Rakuten. However, you will need to do a bit of homework before you visit the store. You will need to browse the In-Store Cash Back offer from the Rakuten website and link offers to your credit card before you shop in the store.
Refer a friend
Rakuten’s referral program is an excellent way to boost your earnings. Rakuten will provide you a personal link that you can share with your friends via email, Facebook, or Twitter.
As of January 2024, Rakuten offers a $30 referral bonus for each friend who signs up using your link and makes a qualifying purchase of $30 or more within 90 days. However, the referral bonus amount can change from time to time.
Rakuten Influencer Program
Are you a social butterfly with plenty of followers on social media such as Instagram, Facebook, or YouTube? Or do you own a website? If so, you can apply and join the Rakuten influencer program and be compensated. Rakuten will review your application and let you know if you are eligible.
How much can I earn with Rakuten?
Rakuten doesn’t cap your earnings. However, you should check the retail’s exclusion which may limit the amount of cashback. Make sure to check the offer details for each store. There is a wide variety of stores and brands partnered with the cashback program, so potentially a person could earn a lot of money cashback.
It is hard to call the money earnings, as it is more of a rebate program. If a person ends up buying things he or she does not need to get the cashback, you really aren’t earning or saving money. So be sure that you are only using Rakuten for things you need.
That being said, I see Rakuten as an excellent way to reduce the cost of many everyday personal and household needs and even big item purchases. If you are going to make the purchase, it is exciting to know Rakuten can help you save a few bucks here and there.
Rakuten cashback history
How do I receive my Rakuten cashback?
You will receive your Rakuten cashback either via Big Fat Check or Paypal payout. Make sure you have a valid mailing address, even if you pick the Paypal option. If your cashback reward is less than $5, it will be carried over to the next period. Rakuten pays out cashback payments on a quarterly schedule on the 15th of February, May, August, and November.
Is Rakuten Safe to Use?
Rakuten takes user security seriously, implementing robust safety protocols to protect your information. The platform employs SSL encryption to secure your data and only works with PCI-compliant payment processors, ensuring that your credit and debit card details are never compromised.
Additionally, Rakuten has a transparent privacy policy, reassuring users that their information will not be sold to third parties. With over 15 million active users and a legacy spanning two decades, Rakuten has built a reputation as a reliable cashback platform.
Pros and Cons of Using Rakuten
Pros
- Wide Retailer Network: With over 3,500 participating retailers, including major brands like Walmart, Macy’s, and Expedia, Rakuten offers cashback options for nearly every shopping need.
- Simple and Intuitive: Rakuten’s website, app, and browser extension make finding and activating cashback deals effortless.
- Generous Bonuses: Rakuten frequently offers promotional bonuses, such as increased cashback during special events and referral rewards for inviting friends.
- Cashback Without hassle: You earn straight cash with Rakuten, which is much more convenient. It’s not a point system or requires you to redeem gift cards from other vendors. Rakuten doesn’t make you jump through the hoop to earn cashback.
- Low Minimum Balance Requirement: Once you accrured over $5.00 Rakuten will mail you a check or deposit the money to your PayPal account on a quarterly basis. $5 minimum balance is a very low requirement.
Cons
- Delayed Payments: Cashback payouts are only issued quarterly, meaning users may have to wait weeks or months to access their earnings.
- Exclusions: Some cashback deals exclude specific categories or require a minimum purchase amount.
- Must Initiate or Activate Rakuten to Earn Saving: In order to earn savings with Rakuten, you must initiate from the Rakuten website, Rakuten mobile app, or remember to activate Rakuten from the Chrome browser before checkout your shopping cart. It’s easy but not a seamless experience.
Pros
- Wide Retailer Network: With over 3,500 participating retailers, including major brands like Walmart, Macy’s, and Expedia, Rakuten offers cashback options for nearly every shopping need.
- Simple and Intuitive: Rakuten’s website, app, and browser extension make finding and activating cashback deals effortless.
- Generous Bonuses: Rakuten frequently offers promotional bonuses, such as increased cashback during special events and referral rewards for inviting friends.
- Cashback Without hassle: You earn straight cash with Rakuten, which is much more convenient. It’s not a point system or requires you to redeem gift cards from other vendors. Rakuten doesn’t make you jump through the hoop to earn cashback.
- Low Minimum Balance Requirement: Once you accrured over $5.00 Rakuten will mail you a check or deposit the money to your PayPal account on a quarterly basis. $5 minimum balance is a very low requirement.
Cons
- Delayed Payments: Cashback payouts are only issued quarterly, meaning users may have to wait weeks or months to access their earnings.
- Exclusions: Some cashback deals exclude specific categories or require a minimum purchase amount.
- Must Initiate or Activate Rakuten to Earn Saving: In order to earn savings with Rakuten, you must initiate from the Rakuten website, Rakuten mobile app, or remember to activate Rakuten from the Chrome browser before checkout your shopping cart. It’s easy but not a seamless experience.
Rakuten Dos and Don’ts
Do
- Do install the Rakuten Chrome extension. Instead of remembering to shop from the Rakuten website, the savings will be more seamless with the Rakuten Chrome extension. All you have to do is continue your normal shopping activity on Chrome and let it do the saving for you. Once you are in a Rakuten eligible store, the popup will appear and ask if you to activate the saving.
- Do allow Rakuten popup on the Chrome browser. If you use a popup blocker, you may have to allow Rakuten popup to activate the savings. If you are not sure, the steps are available in Google support.
- Do activate the saving. If you plan to purchase from a Rakuten eligible online store, make sure you activate the saving from the Rakuten popup.
- Do try to qualify for the welcome bonus – it’s even more free money! It is free to join. Rakuten partners with many reputable stores, and you will most likely get some cashback easily from online shopping and earn the welcome bonus too.
Don’t
- Don’t buy things you don’t really need, with money you don’t actually have just to save a couple of bucks. Frugality is key.
- Don’t leave the site and come back. Don’t jump around from page to page. When you are ready to make the purchase through Rakuten, try to maintain a smooth connection from the rebate site to the end of the transaction. This will increase the likelihood of your purchase being counted by the website.
- Don’t forget to shop around. Although Rakuten partners with over 3500 stores, you still may be able to get a better deal somewhere else. Do your due diligence.
- Don’t neglect to read the terms of the offer. Not all items in the store are eligible for cashback, and certainly the store’s e-gift card will not be eligible. In some instances, using a coupon code that isn’t one of the coupon codes suggested by Rakuten may void the cashback offer. Be sure to look at the fine print to avoid surprises.
Reselling with Rakuten as a Side Hustle?
If you are really into the concept of the side hustle, there is a possible way to earn money with Rakuten. Some individuals use the strategy known as retail arbitrage, where they buy goods that are marked down or on clearance and resell those goods on other platforms like eBay, Poshmark, and Amazon.
A reseller using retail arbitrage could increase profits by using the Rakuten rebate program to make the price of the inventory even lower. Disciplined use of a cashback credit card, combined with the rebates from the site could slash costs even further.
Rakuten Review – is Rakuten worth it?
If you need quick cash, Rakuten probably isn’t for you. But, if you look at it as a way of keeping costs low and getting a reliable flow of money back into your pocket, then Rakuten is a highly recommended way to shop online. After it is all said and done, we feel that Rakuten can help shoppers maximize their savings from their online shopping.
Rakuten is a reputable site, and our experience with Rakuten was positive and our favorite money-saving app. It was a reliable and easy method to get an additional discount for the purchases I already intended to make. The concept of getting a big fat check in the mail every so often is pretty exciting, and Rakuten can make the purchase of everyday necessities a little cheaper. The checks came on time and as promised.
You may also want to check out more great savings and make money online from home ideas. Do you have any experience with Rakuten? Please feel free to share your thoughts with us. Happy shopping!
FAQ
How does Rakuten make money?
Rakuten works by tracking the purchases you make when you go to certain websites from their page. They earn a commission from sending customers to the stores, and they pass part of that commission back to the consumer.
Is Rakuten free to use?
Yes, Rakuten is completely free to use. There are no membership fees or hidden charges, making it a risk-free way to save money.
How long does it take to receive cashback?
While cashback is typically credited to your Rakuten account within a few days, it becomes payable only after the retailer’s return window has closed. This process can take anywhere from 30 to 90 days.
What is Rakuten’s referral program?
Rakuten’s referral program allows you to earn bonuses for inviting friends to join. Both you and your friend receive a bonus after their first qualifying purchase.
