Is Rakuten Legit? Earn Free Cash Back Every Time You Shop

Rakuten is one of the most longstanding and popular money-making apps on the market, but is it legit?

With over 20 million users (myself included) who have collectively earned over $3.2 billion in cash back rewards, the answer to this is a resounding YES!

In this review, I’ll cover:

• How Rakuten works
• Different ways you can make money
• How much you can potentially earn
• Some pros and cons
• A few alternatives to consider (or add on top of Rakuten)

This review is based on personal experience and backed by other Rakuten user reviews.

What is Rakuten?

Founded in 1998, Rakuten is headquartered in Tokyo, with a U.S. main office located in San Mateo, CA. (The company was originally known as Ebates.)

Rakuten pays you cash back whenever you shop with one of the 3500+ participating brands.

Each retailer sets their own offer, which can range anywhere from 1% to 20%+. Some retailers offer a flat cash back dollar amount (e.g. $25 cash back for purchases over $200). 

At press time, you can get a $30 bonus when you join through our referral link.

Is Rakuten Legit?

Absolutely! As mentioned, I’ve been using Rakuten for almost a decade and have earned over $650 (a.k.a. free money) just for shopping like I normally would. 

 

Shopping sessions are seamless, and cash back is calculated automatically. Payouts are handled on a quarterly basis, either via physical check or electronic payment.

Will you earn enough with Rakuten to quit your day job? 

No, but you can still make some decent coin—especially on those big-ticket purchases and during the holiday season.

How to Make Money with Rakuten

Signing up for a Rakuten account is quick, easy, and free. 

Once signed up, you’ll simply connect to the participating retailer of your choice either through the Rakuten app or by activating a shopping trip through the browser plugin. 

You can search for available cash back incentives by category or brand name. Cash back is available for both products as well as certain services, like travel or streaming platforms.

Popular participating stores include:

• Target
• Walmart
• Macy’s
• Kohl’s
• eBay
• Dell
• Zappos
• and more

After you complete your purchase, Rakuten automatically calculates the amount of cash back earned and notifies you via email:

The cash back you earn accumulates in your account until the end of the quarter. 

You can choose to receive your cash back:

• electronically via PayPal
• mailed to you in paper check form
• converted to credit card rewards points (via American Express Membership Rewards)

I get mine via “Big Fat Check”:

If you use the browser plugin, a notification will automatically pop up any time you visit a participating retailer’s website.

That makes it easy to activate a Rakuten shopping trip with one simple click:

Other Ways to Earn/Save with Rakuten

Cash back from your online shopping isn’t the only cool thing about Rakuten.

Automatic Coupon Code Search

The app also scans the web for any relevant coupon codes, which you can apply to your cart with one click. This saves you time and money on top of earning cash back.

In-Store Cash Back

You can also use Rakuten to earn cash back rewards for in-store purchases at participating retailers. Simply connect your credit card to your Rakuten account, add/activate the offer in the Rakuten app or on the Rakuten site, and then pay for your purchase using your linked credit card. 

Referral Bonuses

Lastly, users can earn a cash back bonus for each new qualifying new member referral. At press time, Rakuten was paying out $30 for each qualified referral.

Any new users you refer will also earn a $30 bonus with their first qualifying purchase, so everyone wins.

How Much Can You Make on Rakuten?

The amount you can earn from using Rakuten depends on:

• How often you use the app
• How much you spend at participating retailers
• What types of incentives those retailers are offering

Each retailer or brand sets their own cash back amount.

For instance, Nike might offer 6% cash back while CVS may offer 15%. Some retailers choose to offer a flat dollar amount for qualifying purchases as well. 

There may be certain criteria that must be met, such as a minimum purchase amount, as well as certain exclusions to each offer.

This will be detailed in the “Terms and Exclusions” section once you click on the offer.

With over 3,500 brands to choose from, earning cash back through Rakuten is super easy. The more you shop, the more you make! It’s seriously that easy!

How to Maximize your Rakuten Earnings

There are a few ways you can get the most out of your Rakuten earnings:

Always Check the App First

My first piece of advice is to get into the habit of checking the Rakuten app any time you plan on making a purchase to see if there are any incentives you can take advantage of. The app makes it quick and simple to search.

Install the Plugin

Add the Rakuten plugin to your desktop and enable popups. This takes the guesswork out of using the platform, since it automatically informs you of any current offers for any website you visit. 

Stack Your Savings

In addition to cash back, you can also stack your savings by using the coupons that Rakuten automatically finds and applies.

For example, on my most recent purchase from Kohl’s, not only did I earn 2% cash back on what I spent, but the app also found a coupon code for an additional 20% off my order, which was automatically applied at checkout with one click.  

Take Advantage of In-Store Purchases

Link your credit card(s) and visit the in-store section of the Rakuten site or app.

For this feature, you need to manually activate offers, so I recommend visiting any time you plan on shopping in-person to search for and activate any relevant offers.

Sign Up for Emails

Occasionally, retailers will offer higher-than-normal cash back incentives. By signing up for email notifications, you can be alerted whenever there are any new or limited-time cash back incentives. 

For instance, just today I received an email letting me know that a number of participating retailers are temporarily increasing their normal cash back, ranging from 4% to 40%.

Be a Savvy Shopper

There are sections of the Rakuten website that feature “Triple Cash Back” offers and “Hot Deals.” Check these sections frequently to see what’s up for grabs. 

Refer Friends

If you know of any friends, family members, or colleagues who might also be interested in using Rakuten, you can earn a cash bonus for each qualifying referral.

The purchase requirement and reward amount can vary, but the most current promotion can always be found on the Refer-A-Friend page.

At the time of this publication, the referral bonus is $30 per qualified referral.

Note: There’s no limit to how many people you can refer or how much you can earn, so bonuses can really add up!

How Does Rakuten Make Money?

Participating retailers pay Rakuten for referring customers to their sites. Rakuten then passes along a portion of these earnings to their members in the form of cash back.

Rakuten Pros & Cons

Pros

• Free to Use: It costs nothing to join Rakuten, nor are there any recurring fees for being a member or using the app.
• User-Friendly: The Rakuten app is easy to navigate and activating/claiming offers is seamless.
• Variety of Retailers: Members can shop with 3500+ participating retailers, covering everything from clothing and accessories to travel, banking, and digital services.
• Decent Incentive Amounts: Shoppers who use Rakuten can earn anywhere from 1%-20%+ cash back, and the more you shop/spend, the more you can earn. Some retailers also offer flat rate cash back incentives.
• Additional Savings: Rakuten automatically scours the web for digital coupons, which can be applied to your shopping cart with one simple click.
• Online and In-Store Options: Members have the option to activate and take advantage of cash back offers for in-store purchases as well as online ones, which means more ways to earn.
• Referral Program: Users can earn cash referral bonuses for every qualified new member they refer. At press time, there is no limit to how many bonuses you can earn.
• Flexible Payment Options: Users who don’t have PayPal or would prefer a direct payment can opt to receive their quarterly payout via paper check. There is also a new feature that allows users to convert their rebates into American Express Membership Rewards® Points.
• Low Minimum Earnings Threshold: You only need to earn $5.01 to trigger a payout.

Cons

• Lack of Control: Rakuten payouts are only processed on a quarterly basis, so you’ll only be paid four times a year. There are currently no other payout frequency options.
• Activation is Required: In order to earn cash back, users must remember to activate a shopping session with Rakuten. This is done either by going through the app for mobile shopping, or manually activating a session via the pop-up from the desktop plug-in. It can be frustrating when you realize you’ve forgotten this and missed out on cash back!
• Clunky In-Store Feature: In-store shopping sessions aren’t nearly as seamless as online purchases, since they have to be activated via the website or app in advance, and paid for using the linked card on file.

Is Rakuten Worth It?

While it’s probably not going to be enough to subsidize your income, Rakuten is absolutely worth installing and using. There really are no downsides.

It’s free to signup, install, and use, and you basically make money doing your everyday shopping. What’s not to love about that?

Rakuten Alternatives

There are a few other apps and services similar to Rakuten, but none of them are exactly alike. In fact, these are great apps to maximize your cash back on all your shopping.

Fetch Rewards

The Fetch Rewards app lets you earn points for shopping. Simply purchase a qualifying product or brand, upload a picture of your receipt, and earn points that can be redeemed for gift cards.

Ibotta

Ibotta offers cash back rebates on certain qualifying purchases. Simply add offers to your list via the Ibotta app, complete your shopping trip, and upload an image of your receipt.

Upside

Upside lets you earn cash back rewards on certain purchases, including gas, groceries, and restaurants. Just open the Upside app, claim the offer you want, shop as usual, and earn money back.

Serious About Making Extra Money?

• Start Your Free $500 Challenge. My free 5-day email course shows you how to add $500 to your bottom line.
• Join the free Side Hustle Nation Community. The free Facebook group is the best place to connect with other side hustlers and get your questions answered.
• Download The Side Hustle Show. My free podcast shares how to make extra money with actionable weekly episodes.