Rakuten Review: Cash Back App That Rewards In-Store and Online Shopping

With rising prices on all kinds of goods and services these days, it can be a small comfort to earn a little back on your spending. That's where Rakuten comes in. Rakuten allows you to earn cash back on your shopping at more than 3,500 retailers, both in-store and online. Read our full Rakuten review to learn how it works, and how you might benefit.

Bottom line: Rakuten is a solid free app with great rewards for in-person and online shopping at over 3,500 retailers.

Find out how to use Rakuten, and how it can put cash back in your pocket anytime you shop with a participating retailer.

What is Rakuten and how does it work?

Rakuten is an easy-to-use app that can help you earn cash back on everyday purchases. Each retailer sets its own cash back amounts. You can expect to earn at least 1%, but it's not unheard of to earn upwards of 8% or 10%. The app will also show you special dates with even higher cash back earnings at eligible retailers. Formerly known as Ebates, Rakuten has more retail partners than other cash back apps, making it a cash back enthusiast favorite.

If you also use a rewards credit card, you can maximize your earning potential as you'll earn rewards in both ways.

Download the app and sign up for an account to get started. You can also install the Rakuten browser extension to shop from your computer. You'll see offers from each partner store, usually as a cash back percentage. Rakuten works with over 3,500 stores, but you must activate available offers before you can use them.

Here's how it works:

• Activate the offer before you shop, whether online or in-store.
• Shop online, and your cash back earnings will be credited to your Rakuten account.
• You must link your credit cards or debit cards to your Rakuten account to earn rewards when you shop in-store. This is how your purchases are tracked.
• It may take a few days for earnings to appear in your account.
• Cash back is paid out quarterly by check or via PayPal.

You may wonder how this cash back app works. Rakuten is an affiliate marketing company that receives a commission from each order made through its retail partners. Rakuten then splits that commission with you.

Top perks

Below are a few of our favorite features of Rakuten spelled out in more detail.

Free and easy to use

It doesn't cost anything to be a Rakuten member. It's free and easy to set up an account. Once you've done that, all you need to do is activate the offers and shop as you usually would. It's that simple. There are no confusing steps to go through to earn cash back rewards.

Shop at many popular stores

One thing that makes Rakuten stand out is its wide range of partners. In contrast to other cash back apps with limited retailer options, the Rakuten app features a wide variety of stores. You'll find grocery stores, clothing stores, home improvement stores, electronic stores, pet stores, travel agencies, and many others. Popular retailers include Macy's, Target, Nike, Petco, Expedia, Sephora, and Old Navy. Look for your favorite stores on the Rakuten site.

Shop online or in-store

Some cash back apps only allow you to earn in-store or online -- not both. Rakuten rewards you for both types of shopping, which gives you more opportunities to increase your cash back earnings. Just make sure you link your credit and debit cards to your Rakuten account before you shop in-store.

Earn referral rewards

Rakuten will currently pay you $30 if you refer a friend and give another $30 to the friend if they spend at least $25 within 90 days. If you find Rakuten saves you money and helps you meet your personal finance goals, why not share it with your friends and family? The exact referral bonus may change, but your friend will generally need to make a minimum purchase within a set amount of days to qualify.

Welcome bonus

There's a $10 welcome bonus for new Rakuten users. You must sign up for a new account and make a purchase of at least $25 through Rakuten within 90 days to qualify. You can track your bonus in your account.

Multiple ways to get paid

Rakuten gives you more than one way to get paid. Sadly, it won't deposit your money directly into your bank account, but you can receive your cash back rewards by check or to your PayPal account. Check payments will be mailed to you for free.

READ MORE: Want to spend less money when shopping at your favorite stores? Check out our list of the best coupon apps.

What could be improved

We haven't found a cash back app that has achieved perfection. Below are the areas we believe Rakuten has some room for improvement.

Cash back is paid out quarterly

You'll need to wait a while to receive your Rakuten cash back earnings. The payout schedule is quarterly; you get paid about six weeks after each period ends. There's a minimum redemption of $5.01 -- if you earn less, the money will remain in your account until the next payment date. If you're looking for instant cash back or want to receive your earnings more frequently, Rakuten may not be for you.

Payment dates are as follows:

• Feb. 15
• May 15
• Aug. 15
• Nov. 15

Offers must be activated

Some cash back apps allow users to earn cash back automatically. With Rakuten, you must first activate an offer. This is easy to do, but you won't earn those rewards if you forget.

Not every store is available

Rakuten partners with many stores but doesn't have deals with every retailer. You may find you can't earn cash back at some of your regular stores.

Some store purchases are exempt from rewards

When you use Rakuten, you'll notice that some offers have exemptions. Certain items may not be eligible for cash back rewards -- meaning you won't always earn cash back on your entire shopping trip. Review all offer terms so you know what to expect before you shop.

If you want an app that offers quicker payouts: The Ibotta app also allows you to earn rewards for online or in-store shopping, pays you for referrals, and features a variety of retailers -- though many are grocery stores. It's also free, and you can request your earnings as soon as you reach the minimum $20 threshold. But you may want to stick with Rakuten if you spend more at non-grocery store retailers.

Related: Ibotta vs. Rakuten

If you want an app that earns automatically: Fetch is a free alternative app that works automatically with various physical retailers, including restaurants and convenience stores. It's an excellent option if you often shop in-store because you don't have to activate offers beforehand. But you may want to stick with Rakuten if you need a cash back app that works in-person and online.

Like many cash back apps, Rakuten is free to use. You only need to spend money with eligible retailers to earn cash back rewards. The only cost to watch out for is overspending -- it can be easy to justify unnecessary purchases when you're presented with a sea of special offers. If you struggle with overspending, you may want to give budgeting a try. You can track where your money goes and set spending limits with one of the best budgeting apps.

Anyone who wants to shop in-store or online and earn cash back rewards from a variety of retailers. Rakuten has a good reputation and has more partners than many other apps. If you use Rakuten for spending you were planning to do anyway -- it's free money.