Most of us know the basics when it comes to saving money while shopping. We look for sales of any kind. We take advantage of loyalty-program discounts. And we use a credit card that offers cash back or points good for travel, gift cards or merchandise.<\/p>\n
I\u2019ve done all that for years, but I\u2019ve also tapped another way to save a few dollars here and there. And in time that money has started to add up \u2014 in fact, it\u2019s amounted to $1,377.26.<\/p>\n
That\u2019s the figure I\u2019ve earned over about the past decade from Rakuten Which strikes my cheapskate-minded self as beyond tragic. These apps, which can be accessed via your computer or through your phone, often require very little effort on the user\u2019s part, and they charge you nothing for signing up as a member. Essentially, they connect you with brands and retailers, including almost all of the familiar names. In the footwear category alone, the list ranges from A (Adidas To be sure, at times the rebates are almost laughably inconsequential. Last month, for example, I got a 33-cent rebate on an eBay I\u2019m not alone in my belief that these platforms are an invaluable tool for savvy shoppers, but also sadly an often overlooked one. \u201cI can\u2019t believe more people aren\u2019t on them,\u201d said Chris Lewis, director of research at FinanceBuzz, a personal-finance website. Lewis added that when you\u2019re getting money back on items you were already planning to buy, \u201cit\u2019s a no-brainer.\u201d<\/p>\n Still, the message must be getting out there. A Rakuten spokesperson notes that the company saw double-digit growth in its membership in 2022 and is experiencing the same in 2023. Add it up, and Rakuten now has 17 million members.<\/p>\n So, if you still aren\u2019t on the cash-back bandwagon and want to start reaping the rewards, what should you know? Read on for a basic primer\u2026<\/p>\n Rakuten is arguably the 800-pound gorilla in the cash-back game \u2014 the company says it\u2019s given out $4.6 billion in rebates since its inception in 1999 \u2014 but as I\u2019ve noted, there are plenty of other outfits. Each app has its own approach for earning cash back \u2014 and each has its pros and cons in terms of ease of use and other factors.\u00a0<\/p>\n Among Rakuten\u2019s many strengths: It has a very deep list of retailers on its platform, and it also offers cash back for in-person shopping with some stores. But Ibotta is a good option in other respects since, in addition to offering rebates through retailers, it also offers rebates for individual products (say, $1.50 off a 12-pack of Mountain Dew \u2014 kinda like a modern-day version of a clippable coupon). And Capital One Shopping will provide you with lots of coupon codes to double down on your savings beyond the retailer rebates.\u00a0<\/p>\n But there are yet more choices, even though I can\u2019t say I\u2019ve tried all of them. Upside, for example, is a cash-back app that focuses especially on gas stations. Dosh is a cash-back app that\u2019s said to be good for restaurants and travel. <\/p>\n You get the point: There\u2019s an app to suit just about every shopper\u2019s tastes and interests.<\/p>\n Absolutely not. Since different apps have different benefits and features, there\u2019s no reason to swear allegiance to just one. And if you want to invest a little time before you make your purchase, it may be worth seeing if one app has a higher-percentage rebate from a given retailer than another \u2014 as there can be some variation.\u00a0<\/p>\n Just remember that the more you spread your shopping around with multiple apps, the less your rebates will grow with each individual one.\u00a0Also, it\u2019s generally not permissible to use two platforms on a single purchase \u2014 so no double-dipping, in other words. <\/p>\n In my experience, yes.<\/p>\n I do most of my online shopping with my laptop, and I\u2019ve installed the Rakuten Chrome extension on it. As a result, when I visit any shopping site that Rakuten has partnered with, a pop-up window alerts me of a potential rebate (\u201cActivate 6% Cash Back\u201d) and all I need to do is click on that window to confirm I\u2019d like to take advantage of the offer. I then shop on the merchant\u2019s site, and the rebate should automatically come through (well, more on that later). <\/p>\n But I don\u2019t have to use the Chrome extension. I can also go to Rakuten\u2019s site itself and then get linked to the merchant that way. Or I can use my Rakuten phone app. <\/p>\n The same process, more or less, applies to the other apps. In fact, since I\u2019ve installed Chrome extensions for some other apps, I usually see a few pop-up windows signaling the various cash-back offers they have. That allows me to compare which offer is the best, though I tend to stick with Rakuten because I like to consolidate my rewards. <\/p>\n Again, it depends on the app. But it can take the form of a check or a remittance through PayPal, or even a gift card from a retailer. Some apps require that you earn a minimum amount before you can cash out the rebates. Rakuten sends you the money automatically every 90 days.\u00a0<\/p>\n Generally, no \u2014 and that\u2019s a major drawback to them. Your best bet for saving from Amazon, at least in my experience, is to use the Amazon Visa credit card, which offers 5% cash back on purchases from Amazon.com, Amazon Fresh and Whole Foods Market.<\/p>\n One notable exception to this rule is that you can find some Amazon savings via Ibotta, but Ibotta notes the \u201coffers are only available for select categories and not on an entire Amazon purchase.\u201d<\/p>\n I stick to my conviction that these apps are easy to use, but I\u2019ve heard others say they find the extra steps involved not worth their time. And some may not like the idea of sharing their personal information. \u201cA lot of people are concerned about privacy,\u201d said Kim Palmer, a personal-finance and banking expert at NerdWallet.<\/p>\n It\u2019s also worth noting that it pays, literally, to keep track of your rebates. I\u2019ve had instances where an expected rebate didn\u2019t post, and I had to contact the app to sort things out.<\/p>\n Finally, it almost goes without saying, but I\u2019ll say it anyway: You should use these apps only to make purchases you were already planning to make. You don\u2019t \u201cprofit\u201d if you buy things you don\u2019t need.<\/p>\n Many of the apps have sign-up bonuses \u2014 I\u2019ve seen ones commonly ranging from $10 to $20. And there are referral bonuses if you get friends or family members to join \u2014 with Rakuten, you get $30 for each referral (and those you referred get $30 after they make their first purchase with the app).<\/p>\n That\u2019s simple: They have partnerships with the retailers to cover the rebates. In essence, the apps are marketing vehicles to drive shoppers to particular merchants, but the merchants are the ones that pay for that connection. Or, as Rakuten explains the model on its website, \u201cRakuten works by getting a commission from stores for sending you their way, then sharing it with you\u201d as cash back.<\/p>\n<\/p><\/div>\n
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\n (formerly called Ebates), one of the largest players in the world of cash-back apps and platforms. You may have seen the company\u2019s commercials, particularly a noteworthy Super Bowl spot featuring Alicia Silverstone in full \u201cClueless\u201d mode. But when I recently surveyed some friends and colleagues about Rakuten, I was surprised to discover how, well, clueless they were about the company \u2014 to say nothing of its many competitors, including Ibotta, RetailMeNot and Capital One
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\n Shopping.<\/p>\n
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\n ) to Z (Zappos). Then, they give you cash back based on your purchase \u2014 sometimes as little as 1% of what you\u2019ve spent, but more typically in the range of 3% to 6% and occasionally higher.<\/p>\n
\n EBAY,
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\n purchase via Rakuten. But I also got a $32.80 rebate on a purchase from a contact-lens retailer via Rakuten. So it all depends on the amount you spend and the cash-back percentage offer from that particular store. But it indeed adds up in the end \u2014 and that $1,377.26 I\u2019ve redeemed has helped me pay for more than a few bills.<\/p>\nWhich platform should you use?<\/strong><\/h2>\n
Are you limited to just one app?<\/strong><\/h2>\n
Are these apps really that easy to use?<\/h2>\n
How do you get your money?<\/strong><\/h2>\n
Can I use these cash-back apps when I shop on Amazon?<\/h2>\n
Any other caveats to keep in mind?<\/h2>\n
Any other perks?<\/h2>\n
How are these apps able to give away all this money?<\/h2>\n