Are you looking for a way to earn cash back or American Express Membership Rewards points while doing your online shopping? Look no further than Rakuten! Rakuten is an online shopping portal that offers a fantastic opportunity to earn rewards on your purchases. By using Rakuten as your shopping portal, you can not only save money with cash back but also accumulate valuable American Express Membership Rewards points. In this comprehensive guide, we’ll explore how you can earn rewards when shopping online through Rakuten.
What is Rakuten?
Rakuten was founded in 1997 under the name Ebates by entrepreneurs Paul Wasserman and Alessandro Isolani. The company started as a platform that allowed members to earn cash back for shopping online.
In 2014, Ebates was acquired by Rakuten, a massive e-commerce company based in Japan. Rakuten kept growing the cash back shopping portal and eventually rebranded it from Ebates to Rakuten in 2019.
Today, Rakuten has over 10 million members worldwide and has paid out over $3 billion in cash back rewards to its loyal customers. It’s become one of the premier destinations for earning cash back bonuses on online shopping. The site partners with over 2,500 popular online retailers to share a portion of the commissions they earn from customer purchases.
When you make a purchase on a retailer’s website through Rakuten, the retailer pays Rakuten a commission. Rakuten then shares a percentage of that commission with you in the form of cash back. This gives you an easy way to earn money while shopping online at many of your favorite stores.
One of the game-changing features introduced by Rakuten in 2019 was the ability to earn Amex Membership Rewards points instead of cash back for your online purchases. To participate, all you need is an Amex card that earns Membership Rewards points, such as the American Express Gold or Platinum. This benefit is a great way to stock up on Membership Rewards points.
Let’s break it down: With Rakuten, you can earn one Amex Membership Rewards point for every cent you would typically receive as cash back. This means that if a retailer offers 10% cash back, you would instead earn 10 Membership Rewards points for every dollar spent. That’s a significant value proposition, and it’s not just about earning points; it’s about maximizing the potential value of your rewards.
On Average, the cashback percentage can range from 1% to an amazing 90%. The amount of cashback will depend upon the retailer and the amounts can change throughout the year.
How Does Rakuten Work?
Unlike some other shopping portals, you never have to make a purchase directly through Rakuten itself. Purchases are always made directly on the retailer’s website. Rakuten simply tracks and monitors your shopping trip to provide the cash back rewards after the fact. This makes the entire process quick and seamless.
Let’s look at an example to illustrate how Rakuten works. Imagine you’re planning to buy a new laptop from an online retailer. Instead of going directly to the retailer’s website, you would start your shopping trip at Rakuten. By doing so, you can earn cash back or American Express Membership Rewards points on your purchase. Rakuten will track your spending, and within a day or two, you’ll see the rewards in your Rakuten account. It’s a simple and convenient way to earn rewards while shopping.
The process of earning cash back and rewards with Rakuten is straightforward. Here are the basic steps:
- Join Rakuten for free and create an account.
- Access the online retailer you want to shop at through Rakuten, either by searching on Rakuten or using their browser extension.
- Make a purchase at the retailer’s website as you normally would.
- Rakuten tracks your purchase and adds your cash back or Amex points earnings to your account.
- When your balance reaches the minimum payout amount, Rakuten will issue you a check, PayPal payment, or Amex point transfer.
Why Do Retailers Partner with Rakuten?
You may be wondering, why do big retailers partner with Rakuten to offer commission-sharing and cash back? It’s a fair question.
Retailers team up with Rakuten because the partnership attracts new customers and increases sales volumes. Rakuten provides a huge member base and robust marketing platform for retailers.
Cash back incentives entice consumers to shop more frequently and spend more money than they otherwise would. Retailers view the cash back costs as a marketing expense that boosts their overall sales and revenues.
Essentially, retailers are willing to pay you a bonus through Rakuten to acquire new business. By tapping into Rakuten’s massive audience of deal-seekers, retailers gain incremental sales. The cash back costs are outweighed by the new customer growth and order volume generated.
Signing Up for Rakuten
Getting started with Rakuten only takes a minute. Simply visit Rakuten.com and click Sign Up. You’ll need to provide some basic information like your name, email, and password to create your free account.
Once your account is created, you can browse available offers and immediately start earning cash back on your next online shopping trip.
Choosing Cash Back vs American Express Points
The greatest perk of Rakuten is the ability to earn American Express Membership Rewards points instead of cash back.
Amex points can be incredibly valuable when transferred to airline miles or hotel points. You can use them to book amazing travel adventures like first-class flights and 5-star hotels.
Those who prefer cash can simply stick with the cash back earnings.
You can change your preference between cash back vs. Amex points at any time in your Rakuten account settings. It only takes a moment to switch your earnings if you change your mind.
Understanding the Value of Amex Points
When using Rakuten, you have the option to earn American Express Membership Rewards points instead of cash back. It’s important to note that the value of Amex Membership Rewards points is higher than cash back, especially when it comes to travel rewards. The exact value of each point can vary depending on how you choose to redeem them, but generally, you’ll get more value when using them for travel.
Let’s delve deeper into understanding the value of Amex points. The value of each point can vary depending on the redemption option. For example, when redeeming for cash back, the value of each point may be equal to one cent.
However, when redeeming for travel rewards, the value of each point can increase significantly. For instance, you might be able to redeem 10,000 Amex points for a flight worth $200, resulting in a value of two cents per point. This higher value makes earning Amex points a more lucrative option for those interested in saving up for travel adventures or enjoying premium travel experiences.
When it comes to earning rewards through Rakuten, it’s essential to understand the conversion rate between cash back and American Express Membership Rewards points. The conversion rate determines how many points or how much cash back you’ll receive for a certain amount of spending. The exact conversion rate can vary depending on the merchant and any ongoing promotions, so it’s important to stay informed.
To provide an example, let’s say you’re looking to purchase a new Stanley 64-ounce tumbler. The price of the tumbler is $60. Using your American Express Gold card, you would receive 1x per dollar spent. This would result in 60 Membership Rewards.
But if you used the same American Express Card but purchased the Stanley 64-ounce tumbler through a referral from Rakuten, that same purchase would result in an additional 15x per dollar spent. This would include an additional 900 Membership Rewards added to your account. See how things can add up quickly?
Maximizing Your Rakuten Rewards
If you want to maximize your rewards when using Rakuten, consider using credit cards that offer additional benefits and discounts. Programs like Amex Offers and Chase Offers provide discounts that can be used in conjunction with Rakuten. This means that you can earn cash back or American Express Membership Rewards points from Rakuten, and also take advantage of the offers and discounts provided by your credit card. By stacking these rewards, you can increase your overall savings and earn even more rewards.
For example, let’s say you have the American Express Gold credit card, and you are looking for a new Lenovo laptop. At the time of this article, American Express Gold has an offer that gives you a $100 statement credit if you purchase a Lenovo computer over $500. To stack this offer, you can purchase the Lenovo laptop through Rakuten. Rakuten currently has Lenovo at 6% cash back. So with a $1,000 laptop, you would receive 1,000 Membership Rewards using your American Express Gold, plus a $100 statement credit. THEN, you would receive an ADDITIONAL 6,000 Membership Rewards.
To further illustrate the point, let’s consider another scenario and one I’ve used several times. Suppose you have a Chase credit card that offers a $10 statement credit if you make a purchase at GoPuff (Bevmo). To further maximize this, use Rakuten to refer you to the GoPuff website to place your order. At the GoPuff website, you will place your order and use your Chase credit card to get your $10 statement credit. But wait, it gets better. Rakuten will send you Membership Rewards to your account based upon the cash back value.
With the right strategies, you can squeeze the most value possible out of the cash back and perks offered by Rakuten.
Receiving Your Rakuten Earnings
Rakuten operates on a quarterly payment schedule. Although your purchases will reflect in your Rakuten account within hours, you will only receive payments – whether in cash or points – once every three months. To qualify for a payment, you must have a balance of at least $5 or 500 Membership Rewards points.
Here’s the payment schedule:
Should You Use Rakuten for Shopping?
For consumers who frequently shop online, Rakuten is a valuable tool to save money and earn rewards for purchases you’d make anyway. The cash back deposits up quickly, especially during bonus periods.
However, Rakuten may be frustrating for bargain hunters who only shop deals or rarely pay full price. The base cash back rates at stores can be under 3% for non-promotional prices. You may not find as much value if you exclusively shop clearance racks and deep discounts.
Occasional online shoppers may also not take full advantage of Rakuten’s potential, especially those who prefer physical stores. But for regular online shoppers at major retailers, the cash back earnings will likely outweigh the minimal time and effort involved.
Rakuten Referral Program
If you’re new to Rakuten, signing up through a refer-a-friend link can be especially rewarding. At present, Rakuten is offering a generous $40 bonus for new members who make a purchase of at least $40 within the first 90 days. This effectively allows you to get $40 worth of products or services for free, making it an enticing offer for those looking to make the most of their online shopping.
Rakuten allows existing members to earn additional cash bonuses by referring new users. This is a great way to maximize your rewards.
When you refer a new member to Rakuten using your custom referral link, you can earn up to $40 per person you refer. The exact amount may vary depending on the current offer.
Referring just a few friends or family members per year can easily double your annual Rakuten cash back rewards. The key is sharing your link with avid online shoppers who will use Rakuten frequently after signing up.
Here is my Rakuten referral link.
Disclaimer – If you use my link, I will earn a $40 commission, but you will you will also get $40 from Rakuten
Rakuten Browser Extension
The free Rakuten browser extension makes it effortless to activate cash back anytime you’re shopping an eligible site. Just add it to Chrome or Firefox, and you’ll never accidentally miss out on rewards.
The extension runs discreetly in your browser and automatically applies available cash back offers. It’s an essential tool for Rakuten users.
Key features of the Rakuten browser extension include:
- Automatically find cash back offers at thousands of stores
- Activate bonuses with one click
- View your estimated earnings for the current store
- Get alerts when cash back is available at a retailer
- See your Rakuten account info like balance and pending activity
Installing the browser extension removes the step of manually visiting Rakuten first before shopping. It ensures you never miss a bonus opportunity.
Rakuten Mobile App
Alongside the browser extension, the free Rakuten mobile app is the perfect companion for earning cash back on the go:
- Browse deals, coupons, and availability at nearby stores.
- Access Rakuten exclusives and mobile-only offers from favorite brands.
- Automatically apply available cash back via in-app stores and browser.
- Scan paper receipts with the app to conveniently submit for missing earnings.
- Receive notifications when it’s time to activate your in-store cash back.
- Manage your account, refer friends, and more with full-featured functionality.
For online shoppers who regularly use their smartphone, the Rakuten app is a must-have tool. It unlocks location-based deals, reminders, scanning, and other convenient perks.
Conclusion
Rakuten provides a rewarding opportunity to earn cash back and Amex points for shopping online. Simply access retailers through Rakuten, make purchases like normal, and watch your rewards add up over time.
With lucrative referral bonuses, frequent promos, and surprise bonuses, savvy shoppers can accumulate hundreds of dollars in earnings each year through Rakuten. Whether you prefer the simplicity of cash back or the flexibility of American Express Membership Rewards points, Rakuten is one of the top online shopping portals for maximizing your rewards.
Frequently Asked Questions (FAQ)
Is Rakuten legit?
Yes, Rakuten is 100% legitimate. They have paid members over $3 billion in verified cash back rewards since 1998. Rakuten only generates affiliate commissions from retailers when you make tracked purchases, so they succeed when you get rewarded.
Is Rakuten safe to use?
Rakuten is safe to use. They do not receive or store any sensitive payment information or account passwords. Purchases are made directly through retailer sites, not Rakuten. As with any site, it’s wise to use unique passwords and enable two-factor authentication for your account security.
Are there any restrictions on earning cashback?
Cashback eligibility varies by store and may be subject to specific terms and conditions. Make sure to check the store’s cashback details on Rakuten before making a purchase.
Can I earn cashback with Rakuten on in-store purchases?
Yes, Rakuten offers in-store cashback when you link your credit card to your Rakuten account and make eligible in-store purchases.
These FAQs should help you navigate the process of earning cashback and maximizing American Express Membership Rewards through Rakuten. Remember to refer to Rakuten’s specific terms and conditions for accurate and up-to-date information.
