How Rakuten Cash Back Works (And Yes, It’s Legit)

Cash back is one of those ideas that sounds wonderful right up until you start wondering what the catch is. With Rakuten, the answer is surprisingly ordinary: stores pay for the referral, and Rakuten shares part of that money with you. The trick is knowing how to use it without letting a rebate talk you into spending money you never meant to spend.

I ignored Rakuten for years. There. I said it.

I was convinced there had to be a catch. A company was going to give me actual cash because I bought something I was already planning to buy? Uh-huh. And where, exactly, was the part where I signed away my firstborn?

Turns out I should have looked into it a lot sooner.

I know my way around saving money. I could teach you how to be an extreme couponer. In fact, I once demonstrated extreme couponing live on national television from a supermarket. Coupons work. I know they work.

They’re also a lot of work.

Rakuten takes a different approach. Instead of clipping, organizing and remembering a fistful of coupons, you activate cash back before an eligible purchase and Rakuten gives you a percentage of your money back.

Much more my speed these days.

What is Rakuten?

Rakuten is a free shopping rewards program that offers cash back on qualifying purchases from more than 3,500 participating stores and brands. If the name Ebates rings a bell, that’s because Rakuten was formerly Ebates.

Here’s the part that finally made the whole thing click for me: Retailers pay Rakuten a commission for sending shoppers their way. Rakuten shares part of that commission with you. That’s the business model.

Think of Rakuten as the middleman you don’t mind having around because this particular middleman hands some of the commission back.

Is Rakuten legit?

Yes. Rakuten is legitimate.

And I understand completely why people ask because I asked the same thing.

For years I assumed there had to be something fishy going on. Then I finally did what I should have done in the first place. I looked into it, figured out how Rakuten makes its money and more or less hit myself in the forehead. Why hadn’t I been doing this all along?

Now, “legit” does not mean every purchase earns cash back. Stores, rates, exclusions and offers change. Some purchases don’t qualify. And cash back that doesn’t track can be frustrating.

But the basic arrangement is real: You make an eligible purchase after activating Rakuten, the retailer pays Rakuten for the referral, and Rakuten shares part of that money with you.

How does Rakuten cash back work?

This is the part that sounds more complicated than it is.

Sign in to Rakuten and find the store where you want to shop.
Activate that store’s current cash-back offer and click through to the retailer.
Shop normally and complete your qualifying purchase.
Rakuten tracks the purchase and, once it is confirmed, credits the cash back to your account.

Suppose you’re already planning to spend $100 at a store that’s offering 5% cash back through Rakuten. Activate the offer first, make your qualifying $100 purchase and you could earn $5 back.

Would I buy something I don’t need just to get five bucks? No.

Would I take the five bucks on something I’d already decided to buy? Every time.

The Rakuten browser extension makes this much easier

There’s one rather important flaw in the Rakuten system. You have to remember to use it.

I cannot tell you how many times I’ve merrily wandered into an online store, filled my cart and gotten halfway through checkout before the little voice in my head finally yelled, “RAKUTEN!”

This is why I like the browser extension.

Install the Rakuten Cash Back Button and, when you visit a participating store, it can alert you that cash back is available. Click to activate it, then carry on with your shopping. The extension is currently available for Chrome, Firefox, Safari and Microsoft Edge. It can also find and apply eligible coupon codes at participating stores.

Much better than depending on my memory, which apparently has other commitments.

One caution: Other coupon or rewards extensions, private browsing, certain ad blockers and wandering off through another rewards site can interfere with tracking.

If I’m making a purchase that matters, I don’t get cute. I start a fresh shopping trip through Rakuten, activate the offer and finish the purchase in the same session.

Using Rakuten on your phone

If you’re shopping from your phone, the Rakuten app makes this just as simple.

Open Rakuten, find the store, activate the offer and shop from there.

Rakuten first. Store second. Once that becomes a habit, there’s really not much more to it.

You can also shop through Rakuten.com from a mobile browser, but I find the app easier when I’m using my phone.

Can you get Rakuten cash back in stores?

Yes, at participating stores.

In-store cash back works a little differently because Rakuten needs a way to connect that purchase to your account. For participating offers, you’ll link an eligible payment card to Rakuten, activate the in-store offer before you shop and then pay with the linked card.

That’s worth clarifying because you do not need to link a credit card simply to use Rakuten for ordinary online shopping.

Rakuten also offers cash back at participating restaurants using linked-card offers.

As always, check the particular offer first. Stores, exclusions and cash-back rates can change faster than I can update an article about them.

Can you combine Rakuten with sales and coupons?

Often, yes. And now we get to my favorite part. Stacking.

Years ago I wrote about a $99 Chico’s jacket I bought online. I waited for the price to drop, used my store benefits, paid with a discounted gift card I’d purchased with a cash-back credit card and went through Rakuten before checking out. By the time I stacked everything together, that $99 jacket cost me $27.53 including tax.

Now that’s my kind of shopping.

The exact stores, gift-card sources and offers from that old example have changed, which is why I’m not suggesting you recreate that particular transaction. The principle, however, is as useful as ever.

Start with something you already intend to buy. Wait for a good price when you can. Use an eligible sale or coupon. Activate Rakuten. Then, if it makes sense for you, pay with a method that offers another reward.

Just check the terms before using a coupon code from somewhere other than Rakuten or the retailer. An ineligible code can interfere with cash back.

And never pay more just because you’re getting something back. Spending $95 you hadn’t planned to spend just to earn a $5 rebate is not saving money. It’s spending $95.

MORE: Could You Be Paying More Than the Next Shopper?

When does Rakuten pay you?

This is the fun part. You can watch your cash back accumulate in your Rakuten account while purchases move through the confirmation process.

As of this update, Rakuten’s regular cash-back payments go out four times a year, in February, May, August and November. You need at least $5.01 in confirmed cash back for the regular quarterly payout. If you haven’t reached the minimum, the money stays in your account and rolls forward.

And yes, Rakuten still calls the mailed version a “Big Fat Check.” I love that.

You can choose PayPal instead, and Rakuten offers other reward options for eligible members as well.

Personally? I’m still rather fond of that check showing up in the mail. Old school. Guilty.

What about Rakuten referral bonuses?

Rakuten also has a Refer-a-Friend program. If someone joins through your referral link and completes the required qualifying purchase, both of you may qualify for a bonus.

Here’s one thing I’ve learned not to put into permanent ink: the dollar amount. Rakuten changes its referral promotions. The bonus, spending requirement and qualifying period can vary.

So rather than telling you that you’ll earn a certain amount and having that sentence be wrong three months from now, check the current offer when you’re ready to refer someone.

Forgot to activate Rakuten before you bought something?

Oh, I’ve been there.

Unfortunately, cash back generally isn’t retroactive. If you simply forgot to activate Rakuten and then completed the purchase, you can’t go back afterward and turn that shopping trip into a Rakuten purchase.

That’s another reason I like the browser extension.

But that’s different from cash back that should have tracked and didn’t.

If you activated Rakuten before shopping, followed the offer terms and the purchase still doesn’t appear, give it the required processing time and then use Rakuten’s Missing Cash Back help process if necessary.

Keep your order confirmation. You’ll want details such as the retailer, order number, date and purchase amount if you need Rakuten to investigate.

Why didn’t my Rakuten cash back show up?

Sometimes the problem isn’t that you forgot Rakuten. You remembered, did everything right, and the money still appears to have wandered off somewhere.

First, don’t panic. Cash back doesn’t always show up immediately. The retailer has to report the purchase, and some transactions take longer to process and confirm than others.

Tracking can also fail if you switch devices during the purchase, use private browsing, have certain tracking or ad-blocking settings turned on, click through another rewards service after Rakuten, use an ineligible coupon or buy something excluded from that store’s cash-back offer.

Returns and cancellations can also make previously pending cash back ineligible.

For purchases where the rebate could be substantial, I take two extra seconds before checkout and make sure Rakuten shows that cash back is activated.

Not exactly strenuous.

So what’s the catch with Rakuten?

When I first discovered Rakuten, I thought the catch had to be privacy. That’s a fair question anytime a company is tracking shopping activity in order to pay a rebate.

Rakuten’s privacy policy explains what information it collects, how that information may be used or shared, and what privacy choices are available to users. If that concerns you, don’t just take my word for it. Read the current privacy policy and decide whether you’re comfortable with the arrangement.

For me, however, the bigger practical danger is much simpler.

Temptation.

Cash back can make spending feel suspiciously like saving. It isn’t.

If you spend $100 on something you didn’t need because Rakuten offered 5% back, you did not save $5. You spent $95. Important distinction.

Rakuten works best as the final step in a purchase you’ve already decided makes sense.

Need new tires? Check Rakuten. Already booking the hotel? Check Rakuten. Found the Christmas gift that’s on your list and in your budget?

Check Rakuten.

Bored at 10:47 p.m. and wondering what the Internet would like to sell you?

Maybe don’t check Rakuten.

MORE: How to Stop Impulse Buying: Consider the Consequences Before You Purchase

Is Rakuten worth it?

If you regularly shop online at participating stores, I think Rakuten is worth having. It’s free. Once you get into the habit, it requires very little effort. And while most individual rebates aren’t going to change your life, those little amounts have a pleasant way of becoming bigger amounts.

If you hardly ever shop online, don’t force it. You are not missing some magical road to riches.

And whatever you do, don’t start buying things just because the cash-back percentage is flashing at you.

The smart way to use Rakuten is wonderfully uneventful: Buy what you were already going to buy. Get the best price you reasonably can. Activate the cash back.

Then take the rebate. Works for me.

Rakuten cash back FAQs

Does Rakuten cost money?

No. Rakuten is free to join and use.

Do I need a credit card to use Rakuten?

Not for ordinary online cash-back shopping. Linking an eligible payment card is used for features such as participating in-store and dining offers.

Do I have to start at Rakuten every time?

You need to activate Rakuten before making a qualifying purchase. You can start through Rakuten’s website or app, or activate cash back through the browser extension while you’re shopping.

Is Rakuten the same as Ebates?

Rakuten is the current name of the cash-back service formerly known as Ebates.

Can I use coupons with Rakuten?

Often, yes. Rakuten cash back can be combined with many sales and eligible coupons. Check the store’s Rakuten terms before using an outside coupon code because some codes or offers can make a purchase ineligible for cash back.

Can I get Rakuten cash back after I’ve already made a purchase?

If you simply forgot to activate Rakuten before buying, cash back is generally not retroactive. If you did activate Rakuten and an eligible purchase failed to track, use Rakuten’s Missing Cash Back process.

How long does Rakuten cash back take to appear?

It varies by store and purchase. Some transactions appear fairly quickly while others, particularly purchases such as travel, can take longer to process and confirm.

Will Rakuten make me rich?

Nope.

But getting some money back on things you genuinely needed to buy beats getting none.

I’ll happily settle for that.

Question: What’s the best Rakuten rebate you’ve ever gotten, or are you still wondering what the catch is? Tell us in the comments below.

Getting cash back is nice. Keeping more of your money in the first place is even better. That’s the kind of practical help I share every day in the Everyday Cheapskate newsletter… smarter ways to shop, spend less, avoid expensive mistakes and make your money go farther without making life miserable. Subscribe here and I’ll send it straight to your inbox, free.

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Please keep your comments positive, encouraging, helpful, brief,
and on-topic in keeping with EC Commenting Guidelines

Rhonda M says:

February 5, 2024 at 6:06 am

I have been using Ebates/Rakuten for several years with no problems. During Cyber Monday I purchased a HP laptop from HP and several other things from other websites. I was expecting to get $40 from my HP laptop purchase. When I did not get it, I was informed it did not qualify because it was a special offer. Also my other purchases were not paid for that day and I didn’t pursue it because it didn’t amount to much. Buyer beware!

Mary Hunt says:
February 5, 2024 at 1:26 pm

Always read the fine print. It could be buried, but it must be there somewhere. “Cannot be combined with any other offer” is often paired with a huge discounted sale price.

Kelley K Gill says:

February 4, 2024 at 11:40 am

I finally joined last year – so glad i did! I regularly use Petsmart online to order pet stuff – well, Rakuten was offering 20% cash back some days before the holiday – plus with my accumulated points at Petsmart – some of my savings amounts were $28! I found it rather addictive, but that’s where I get the most bang for my buck! Walmart offers smaller rebates, for household stuff, not groceries, but it adds up! Thanks Mary for keeping the conversation going about this app!

Linda A Pries says:

February 4, 2024 at 8:36 am

I have tried Rakuten but I am basically an Amazon shopper when I am looking for anything other than groceries. Yes, I spend $100 a year on clothing and planting supplies but shopping is definitely NOT something I enjoy, therefore I avoid it until absolutely necessary.

Cindy Mikels says:

February 4, 2024 at 7:51 am

Is the $50 cap new? I’ve used Rakuten for years as well… since it was ebates. We joined Lifelock several years ago when they had a 90% rebate…yes, 90%! It amounted to over $300.

Mary Hunt says:
February 4, 2024 at 9:40 am

That refers to Boost Bonuses. “The Boost Bonus shall be subject to a total overall cap of $50.00 for all of your Qualifying Purchases made during the Boost Bonus Period (“Boost Cap”). The standard Cash Back rate shall not be subject to the Boost Cap, though may be subject to other applicable merchant terms and exclusions.”

Suzanne says:

August 15, 2023 at 6:01 am

I’ve also been with Rakutan since it was Ebates. The only issue I’ve had with it is that there aren’t enough participating stores. Most days when I start there the store I’m shopping isn’t listed. And I’m willing to shop at another store if they have what I need. But most of the time I can’t find the item I need on the Rakutan site.

Mary Hunt says:
August 15, 2023 at 4:17 pm

There used to be only a few, but if you look at this list now you may be surprised. More than 3,500 now participating.

Robin says:

August 15, 2023 at 5:50 am

Thanks to you, I have earned almost $200 in the 3.5 years I have participated in Rakuten! Your advice has been spot-on throughout the years! Thank you!

Mary Hunt says:
August 15, 2023 at 4:17 pm

That’s awesome, Robin! Happy this is working for you (like it does for me!)

Kerry Cowley says:

August 14, 2023 at 7:47 pm

I’ve been frustrated trying to book hotel rooms through Rakuten. The past two times I’ve gone to the site the price on the room jumped a bunch from what it was showing on a site like booking.com so it would have actually cost me money to book through the portal. When I contacted Rakuten, they had no explanation for why it was doing that. They also don’t send the promised cash back on lodging in a timely manner. It’s been over 4 months and I’m still waiting for the cash to post.

Mary Hunt says:
August 15, 2023 at 4:19 pm

Are you certain you will get the rebate if you book thru a 3rd party like Booking.com? Hmm … I would be very surprised.

Cath says:

September 20, 2022 at 7:58 pm

I read your story, and looked at the website, even read other people’s posts about them. They do seem legit. However, I rather suspect that the reason so many companies are willing to give you discounts is because this is a huge data mining operation. I would assume all these companies are being given the opportunity to track you as you navigate the internet every day. There are many nefarious ways that companies can manipulate you, and even change what you see online. It’s something to think about.

Mindy says:

September 17, 2022 at 7:04 am

As Mary would always recommend, shop around for rebate sites as well. Ebates/Rakuten does NOT always offer the most money back. Since we’re all about saving as much as we can nowadays, it literally pays to shop around for the best rebates as well. Happy shopping!

Atk says:

September 17, 2022 at 4:31 am

I joined Rakuten and got one or two checks, and have $3 sitting in my account. Most of the items I order I find on Amazon, and Rakuten doesn’t participate with Amazon.

Robin Disney says:

September 16, 2022 at 4:03 pm

Been using Rakuten for years – it was Ebates back then. When we remodeled our kitchen and bath six years ago I shopped exclusively through Ebates for our new towels, rugs, curtains, dishes and cookware. Took advantage of promo codes available and hit some great timing with cash back percentages during that period. My Big Fat check that quarter was $248.00!

Mary says:

January 31, 2022 at 12:20 am

I need to know the list of stores before I join. Where can I see the list?

Mary Hunt says:
January 31, 2022 at 5:56 am

All Stores …
Mary Hunt says:
August 14, 2023 at 6:51 pm

rakuten.com

Lyn Turner says:

December 2, 2021 at 4:18 pm

I’ve used Rakuten ever since it was Ebates. Love getting my “Big Fat Check” in the mail! usually the amount is in the $20 to $30 range, but since I’ve been Christmas shopping online my Nov check was $48… Every time I get one, it goes into my Christmas Club account. Free money for next year!!

Donna Romer says:

December 2, 2021 at 10:31 am

Thank you for telling us exactly how to use Rakuten. It is VERY helpful. I’m pretty good on the computer but sometimes I get lost!