Rakuten is one of those tools that sounds too simple to actually work: click a link before you shop, get money back. But it’s been paying out cash back and points for years, and once it’s part of your routine, it takes almost no extra effort. Here’s how it actually works and how to fold it into a points and miles strategy.
The Basic Idea
Rakuten partners with thousands of online retailers. When you start your shopping trip at Rakuten or through its browser extension, then click through to a store like Nordstrom or Expedia, Rakuten earns a referral commission on your purchase and passes part of it back to you. The retailer pays the same either way; you’re just routing your visit through Rakuten first instead of typing the store’s website directly into your browser.
Cash back is calculated on the subtotal, not the total, so shipping, tax, and gift cards usually don’t count toward your earnings. Each store sets its own rate and terms, so it’s worth a quick check before a big purchase.
Cash Back or Points, You Choose
New accounts default to earning cash back. But if you’d rather collect Amex Membership Rewards points instead, you can switch that in your account settings; a store offering 2% cash back becomes 2 points per dollar instead. One thing to know before you switch: it’s permanent. Once you move to points, there’s no going back to cash back on that account.
The Extension Makes It Automatic
The Rakuten Cash Back Button is the easiest way to use this. Install it once, and it pops up a notification whenever you land on a site that has a Rakuten offer, so you’re not stuck remembering to check before every purchase. The mobile app takes it further with in-store dining offers and app-exclusive retailers.
When You Actually Get Paid
Payouts run on a quarterly schedule, earnings from January through March get paid out by mid-May, April through June by mid-August, and so on. You’ll need at least $5 in your account for a payout to go through, otherwise it rolls into the next quarter. Depending on your settings, you can take it as a check, a PayPal deposit, or a gift card.
Comparing Your Payout Options
| Option | Best for |
|---|---|
| Cash back | Simple, flexible, no strings attached |
| Amex Membership Rewards points | Travelers who already transfer MR points to airline and hotel partners |
| Gift cards | Occasional small bonus boosts on redemption |
Stacking It With Your Credit Card
Rakuten doesn’t care which card you pay with, so there’s no reason not to pair it with whatever card already earns the best rewards for that purchase. A card that gives bonus points at a specific type of merchant still earns those points on top of your Rakuten cash back or MR points, the two track separately and don’t cancel each other out.
A Couple of Things to Watch for
Rakuten works well, but a few habits keep it from backfiring:
- Skip any promo code that didn’t come from the retailer’s own checkout page, an unlisted code can void your Rakuten tracking entirely
- Clear your cart before clicking through from Rakuten, leftover items can sometimes cause tracking issues
- Give it a minute after clicking through before you start shopping; the tracking needs a second to register
If you’re building out a points and miles setup and want the cards that pair well with this kind of everyday spend, my breakdown of the best Amex cards for earning travel points is a good next stop since Rakuten’s points option runs through Membership Rewards.
And if you’re just getting your tracking systems in order in general, my guide to tracking welcome bonuses covers the habits that make sure nothing falls through the cracks. Worth pairing both with the card mistakes to avoid so your everyday spend and your card strategy are actually working together.
The Bottom Line
Rakuten is about as close to free money as this hobby gets, you were going to buy the thing anyway, so you might as well get something back for it. It won’t replace a real points strategy on its own, but as a layer underneath one, it adds up quietly in the background with almost zero effort.
Have a great day,
Lisa ✈️