Rakuten Review: How Cash Back Shopping Works
Cash back review
Rakuten Review:
How Cash Back Shopping Works
Most of us shop online at least sometimes, for school supplies, birthday gifts, or the household basics we forgot at the store. Cash back sites promise to give you a little of that money back, and Rakuten is one of the biggest names in the space.
In this Rakuten review, we explain how cash back shopping works, how and when you get paid, what it realistically earns, and the honest pros and cons.
At a glance
We use this
- You get paid
- Cash back by PayPal or check, every three months
- Effort
- Very low: one click with the browser extension
- Cash out from
- $5.01 in confirmed cash back
- Good to know
- Returns cancel the cash back for those items
Our take: one of the most legitimate, low-effort cash back options. If you shop online at all, it is worth setting up.
Disclosure: some links in this post are referral links. If you sign up through them, we may earn a small bonus at no cost to you. We only share tools we would recommend to a friend.
What is Rakuten?
Rakuten is a free cash back shopping site, app, and browser extension. Stores pay Rakuten a commission when you shop with them through Rakuten’s link. Rakuten then shares part of that commission with you as cash back.
It works with thousands of online stores, from big department stores to clothing brands, travel sites, and office supply shops.
How Rakuten works, step by step
- Sign up for a free account on the website or app. On the US site, you must be 18 or older and live in the US.
- Before you shop online, go to Rakuten first and click through to the store, or install the browser extension so it alerts you when cash back is available.
- Shop and check out on the store’s site like normal.
- Rakuten tracks the purchase and adds pending cash back to your account, usually within a few days.
- After the store’s return window passes, the cash back is confirmed.
- Rakuten sends your payment on a regular schedule.
Cash back rates vary by store and change often. A store might offer a small percentage one week and a much higher “double cash back” rate during a sale.
Ways to earn with Rakuten
Online shopping through the site or app
The core way to earn.
Browser extension
Reminds you to activate cash back so you do not forget.
In-store cash back
Some stores offer cash back when you link an eligible Visa, Mastercard, or American Express card and add the offer before shopping in person.
Welcome bonus
New members may earn a bonus after reaching a minimum spend within a set time.
Referrals
Bonuses when friends sign up and make a qualifying purchase.
How you get paid
3 months
between payments
$5.01
minimum confirmed cash back
PayPal
or check
Rakuten pays every three months, rather than whenever you want. You can typically choose to receive payment by PayPal or by check, and some members can choose to receive credit card rewards points instead.
You need at least $5.01 in confirmed cash back to get paid. If you do not reach it, your cash back rolls over to the next payment period.
What Rakuten realistically pays
Your earnings depend entirely on how much you already shop online and where. A family that makes a few online purchases a month might earn a small amount each quarter. Big purchases, like electronics, furniture, or travel, can bring in noticeably more.
The key word is “already.” Rakuten is a good deal only when you were going to buy the item anyway. If a cash back offer tempts you into spending you had not planned, you have not saved anything.
How much time does it take?
1 clickwith the browser extension
Very little. With the browser extension, activating cash back is one click. Even without it, going through Rakuten first adds maybe 30 seconds to an online order. There is no work beyond shopping as usual.
Quick answers
Is Rakuten legit?
Yes. It is a long-running, well-known cash back company that pays members on a regular schedule.
Is Rakuten cash back taxable?
Cash back on purchases is generally treated as a rebate, not income. Referral bonuses are different and are generally taxable income. Rules vary, so check with a tax professional.
Can you use Rakuten on your phone?
Yes, through the Rakuten app. Open the app and shop through it so the purchase tracks.
Rakuten review: pros and cons
Pros
- Free to join and easy to use.
- Works with thousands of well-known stores.
- Pays real money through PayPal or check, not just points.
- Almost zero extra effort once the extension is set up.
- Can stack with store sales and some coupon codes.
Cons
- You wait for payment on a set schedule instead of cashing out anytime.
- Purchases sometimes fail to track, especially with ad blockers or certain coupon codes.
- Returns cancel the cash back for those items.
- Rates change often, so the number you saw last month may be different today.
- The extension and emails can encourage more shopping.
Who Rakuten suits
Rakuten is a great fit for moms who already shop online regularly and want an easy way to get a little back. It works especially well for planned big purchases, like back-to-school shopping or holiday gifts. It is less useful if you rarely shop online or mostly buy from stores that do not participate.
Cash back sites work best inside a plan. In our Money Masters course, we walk through building a simple budget first, then using tools like cash back to stretch it, instead of letting apps set your spending.
To see how cash back sites compare with other money apps, check out our Side Hustle Spotlights series.
Our verdict
Rakuten is one of the most legitimate and low-effort cash back options available. If you shop online at all, it is worth setting up. Just use it for planned purchases, remember that returns reverse your cash back, and do not let a high cash back rate talk you into spending.
Ready to try it?
Sign up for Rakuten and start earning cash back on shopping you already do.
Want the full step-by-step?
If you are ready to learn more about stretching your budget and picking the right money apps, become a member and get access to all of our courses, including Side Hustle Spotlights and Money Masters, plus everything else in the Money Magic for Moms library.
