Have you heard of Rakuten? If you want big savings, then you should have by now! If not, don’t sweat it! After all, who wouldn't want to get money back on purchases they were already planning to make? This is the promise of Rakuten, a popular cash-back platform. But when something sounds this good, it's natural to be skeptical. Is Rakuten a legitimate way to save, or is it just another internet scam? This review cuts through the noise to give you a clear picture. 

We will examine how Rakuten works, its business model, and what real users experience. By the end, you'll have all the information you need to decide if signing up is the right move for your wallet.

What is Rakuten?

Rakuten is a legit American online shopping portal that gives members cash back for purchases made through its links. Originally known as Ebates, the company was acquired by the Japanese e-commerce giant Rakuten, Inc. in 2005 and fully rebranded in 2019. This affiliation with a major international corporation provides a layer of credibility.

The company works with over 3,500 online stores and also offers an in-store cash-back option . When you make a purchase through Rakuten, the company earns a commission from the retailer. It then shares a portion of that commission with you as cash back. This model allows Rakuten to offer its services for free while giving you a reward for your shopping.

Does Rakuten Offer Cashback?

Yes, Rakuten's primary offer is cash back. The platform provides a percentage of your purchase price back after you buy through its links. The amount you earn varies by store and can change daily, ranging from 1% to as much as 20%.

It's not a complex points system or a cryptic discount code. The cash back you see advertised is the actual amount of money you can receive. You can browse the available cash-back offers directly on the Rakuten homepage or through its browser extension before you shop.

How Easy Is Rakuten to Use?

Rakuten is designed to be a low-effort way to save money. Getting started is straightforward: you create a free account with an email address and password . From there, you have a couple of simple ways to shop and earn.

You can download the Rakuten browser extension, which will alert you with a pop-up when you're on a site that offers cash back. Alternatively, you can search for your store directly on Rakuten's website and click through to the retailer from there. For in-store purchases, you download the Rakuten app, link your credit or debit cards, and activate an offer before you shop 

How Does Rakuten Work?

If we talk about how Rakuten works, we can think of its UI and navigation. Or maybe you are curious about its business models and services. Whatever the case, here is an overview of the different ways in how Rakuten works:

The Affiliate Model

Rakuten partners with thousands of well-known brands. These brands agree to pay Rakuten a commission for every sale that originates from its platform. When you click a Rakuten link to go to a store, a tracking cookie is placed on your browser. This cookie tells the retailer that you came from Rakuten. If you make a purchase, the sale is recorded, and Rakuten earns a fee. Rakuten then shares a part of this fee with you as cash back. This creates a win-win situation where the store gets a sale, you get a reward, and Rakuten facilitates the connection.

The User Journey

For you, the process is simple. First, you sign up for a free account. When you're ready to shop, you start at the Rakuten website or use its browser extension to activate the cash-back offer. Then, you just shop as you normally would on the retailer's site. There are no special codes to enter at checkout; the tracking happens automatically. After you complete your purchase, the cash back will appear in your Rakuten account as "pending." It stays in this state for a period to ensure you don't return the items, after which it becomes "paid" and is added to your total earnings.

Rakuten's Business Ecosystem

Rakuten is more than just a cash-back site; it's part of a large global conglomerate. Rakuten Group, Inc. operates major segments in Internet Services, FinTech, and Mobile, and it consistently reports billions of dollars in revenue . The cash-back portal falls under its Internet Services segment. This financial backing from a profitable, publicly traded company demonstrates that Rakuten has a sustainable business model and isn't reliant on questionable practices to operate.

What Can You Buy or Sell on Rakuten?

Rakuten is primarily a shopping portal, so you are there to buy. The platform gives you access to cash back at a vast range of well-known stores across numerous categories. You can find everything from fashion and beauty to travel and electronics.

While you can't sell pre-owned items on the main Rakuten cash-back site, the Rakuten Group does operate Rakuten Rakuma, a popular consumer-to-consumer marketplace in Japan. For most international users, however, the value lies in earning cash back on purchases from major retailers.

Most Popular Products and Services on Rakuten

You can earn cash back on a huge variety of items. The specific products are whatever the partnered stores sell. Some popular retailers frequently available on Rakuten include:

• Beauty: Ulta Beauty (typically 3% cash back) and Sephora.
• Department Stores: JCPenney (typically 2.5% cash back).
• Electronics & Games: GameStop (typically 2.5% cash back).
• Apparel: Nike (typically 1.5% cash back).

It's important to always check Rakuten directly before you shop, as cash-back rates can fluctuate based on promotions and seasons.

The Downsides of Rakuten

While Rakuten is legitimate, using it does come with some common frustrations that you should know about. No service is perfect, and user reviews frequently highlight a few key issues.

• Delayed Payouts: Rakuten pays out your cash back earnings only every three months. This means the money you earn today won't land in your pocket for up to 90 days or more. If you were hoping for instant savings, this system can feel slow.
• Tracking Can Fail: A frequent complaint is that cash back doesn't always track properly. If you forget to activate the offer, use an ad-blocker, or clear your cookies, the connection between your purchase and Rakuten can be broken, resulting in lost earnings.
• Exclusions and Fine Print: Some purchases, like those on Amazon or certain items from Walmart, are either excluded from cash back or have heavy restrictions. It's crucial to read the terms for each store to know what qualifies.
• Customer Service Challenges: Some users report difficulties when trying to claim missing cash back, with customer service sometimes being unable to help if the merchant doesn't confirm the purchase.

Is Rakuten Legal or a Scam?

Rakuten is completely legal. It operates on a standard affiliate marketing model that is widely used across the internet. The company is not a scam; it is a real business with a transparent way of generating revenue.

Its legitimacy is further reinforced by its position within the publicly traded Rakuten Group, which has reported record-high revenues and operates regulated financial services like Rakuten Bank and Rakuten Securities . A scam operation would not be able to sustain such a large, complex, and financially audited business structure over many years.

Is Rakuten Legit or Not?

Yes, Rakuten is a legitimate company and service. It is not a scam, because it has received over 34K verified reviews on TrustPilot. Rakuten has received 4.5 stars overall. The platform provides a real way to earn cash back on your online shopping. Its business model is clear, and it is backed by a major international corporation with strong financial results.

However, "is Rakuten legit" does not mean "flawless." As noted in the downsides, users can and do experience problems with tracking and payouts. These issues are typically related to the technical limitations of affiliate tracking and the standard business policies of Rakuten, not an indication of fraudulent intent. The company's recent focus at its industry events on improving "unreliable tracking" and "fragmented attribution" shows it is actively working on these known pain points .

How Much Can You Earn on Rakuten?

Your earnings on Rakuten depend entirely on your shopping habits. There is no limit to how much you can earn, but the amounts per transaction are typically modest. For example, a $100 purchase at a store offering 3% cash back will put $3 in your account. While this might not seem like a lot, these small amounts can add up significantly over time, especially if you use Rakuten for most of your online shopping.

You can also get a welcome bonus; new users can often earn a $10 bonus or get 10% cash back on purchases made in their first seven days (up to $50). Using the Rakuten Cash Back Visa® Card can also boost your earnings on certain purchases.

How Does Rakuten Pay Out?

Rakuten issues payments quarterly. This means you will receive all the "paid" cash back you've accumulated over the previous three months in one single payment.

Payments are sent in February, May, August, and November.

You can choose to receive your money via PayPal transfer or have a physical check mailed to you . Your account must have at least $5 in earned cash back to receive a payment. If you have less than $5, the balance will roll over to the next quarter.

Tips for Using Rakuten and Making the Most Out of It

To maximize your earnings and minimize hassles, follow these practical tips:

• Install the Browser Extension: This is the easiest way to ensure you never miss cash back. The extension will pop up when you visit a partnered site, reminding you to activate the savings.
• Compare Cash-Back Rates: Check Rakuten before any online purchase. Sometimes, the cash-back percentage can be much higher during special sales or promotions.
• Combine with Other Savings: You can still use store coupons and promo codes when shopping through Rakuten. Stack these discounts on top of your cash back for maximum savings.
• Shop In-Store: Don't forget the in-store option. Link your cards in the Rakuten app, activate an offer, and then use that card to pay in-person to earn cash back on your physical shopping trips.
• Consider Amex Points: If you have an American Express card that earns Membership Rewards® points, you can link your account and earn points instead of cash back through Rakuten, which can sometimes offer greater value for travelers .

What to Watch Out for on Rakuten

Staying aware of these common pitfalls will help you have a smoother experience with the platform.

• The Activation Step: The single biggest mistake is forgetting to activate the cash back. Always make sure the Rakuten icon is green and active before you check out, or start your shopping journey from the Rakuten website.
• Clearing Cookies: If you clear your browser cookies after clicking a Rakuten link but before purchasing, you may erase the tracking cookie and lose your cash back.
• Using Incognito Mode: Shopping in private or incognito browser windows can interfere with tracking. It's best to use a standard browser window for purchases where you want to earn cash back.
• The Fine Print: Always check the store's terms on Rakuten. Some exclusions apply, and certain product categories may not be eligible for cash back.

Conclusion

So, is Rakuten legit? The answer is a clear yes. It is a legitimate company with a sustainable business model that allows you to earn real cash back on your everyday shopping. While it has drawbacks like delayed payouts and occasional tracking issues, these are operational realities rather than signs of a scam. 

For the savvy shopper, Rakuten is a powerful tool. By understanding how it works and using it strategically, you can turn your necessary purchases into modest but meaningful savings over time. It won't make you rich, but it will put money back in your pocket for buying what you already intended to.