Is Rakuten a Scam?

If you’re thinking of using Rakuten, you need to know whether it’s safe. Is Rakuten a scam? 

Below, we explain whether Rakuten is a scam and discuss some steps you can take to improve your safety when using this shopping rewards program. 

What Is Rakuten?

Rakuten Rewards (formerly Ebates) is a shopping rewards program that pays cash back or AmEx Membership Rewards points when users shop through the Rakuten website, mobile app, or browser extension.  

It partners with more than 3,500 retailers and sends rebates directly to members.

Ebates, a U.S. start‑up founded in 1998, pioneered online cash‑back shopping. Rakuten Group, a Japanese e-commerce conglomerate, acquired Ebates in 2014 and rebranded the program as Rakuten Rewards in 2019.  

The integration expanded Rakuten’s loyalty ecosystem and added options, such as using rebates to earn American Express points.

Rakuten Group became publicly listed in 2000. 

Is Rakuten a Scam?

No, Rakuten is not a scam. It’s a legitimate loyalty program that has millions of members and is operated by a publicly traded company. 

Several third-party publications and review sites have evaluated Rakuten. 

For example, a review on the Clark Howard website says that Rakuten is easy to use, offers many ways to earn cash back, and can help you save money. The downsides mentioned (like quarterly payout timing and needing to follow specific steps to earn cash back) are presented as minor limitations, not deal-breakers.

Bankrate’s cash back app comparison ranks Rakuten as the top choice for overall shopping because it is easy to use and offers competitive rebates across many retailers. Meanwhile, Business Insider names Rakuten the best cash back app for getting money back on online purchases. 

NerdWallet compares Rakuten with the cash back savings app TopCashBack. It notes that TopCashBack often pays higher percentages, but Rakuten may suit those who value automatic transfers, generous referral bonuses, and the option to earn AmEx Membership Rewards points. 

User reviews of Rakuten are mixed at the time of writing:

• 4.5 out of 5.0 stars (from 33,538 reviews) on Trustpilot.
• 2.6 out of 5.0 stars (from 2,127 reviews) on Sitejabber.
• 1.2 out of 5.0 stars (from 573 reviews) on Consumer Affairs.  
• 1.7 out of 5.0 stars (from 412 reviews) on Pissed Consumer.
• 3.4 out of 5.0 stars (from 73,450 reviews) on Google Play.
• 4.8 out of 5.0 stars (from 360,186 reviews) on the App Store. 
• 1.86 out of 5.0 stars (from 167 reviews) on Better Business Bureau. 

Many customers praise Rakuten’s simple interface, wide merchant network, and the ability to receive actual cash via PayPal or check.

Complaints center on missing cash back, delayed payouts, and difficulty resolving issues with customer service. Some users also warn that using coupons or ad blockers can disqualify purchases.

On online forums like Reddit, people likewise report varying experiences. 

Many say they’ve used it for years, back when it was called Ebates. Users report consistent cash back or Amex Membership Rewards (MR) points depending on how you set up your account.

However, sometimes a purchase doesn’t track, and you must submit a ticket. Not everyone succeeds in claiming missing cash back. 

Several people who earned larger cash back amounts also said their accounts were suddenly locked, banned, or their earnings were removed right before payout.

In its terms and conditions, Rakuten says that it reserves the right to investigate accounts and rescind Cash Back or terminate accounts if it suspects fraudulent activity, including “engaging in a pattern of returning products after the corresponding Cash Back has been credited.” 

Several long-term users have alleged that Rakuten’s reliability has declined and that they have not received their payments.

Rakuten is a Better Business Bureau (BBB) accredited company and holds an “A+” rating on the BBB website at the time of writing.

The company has received 2,088 complaints on the BBB website over the last three years, with 579 of these complaints closed within the past 12 months. Many complaints involve delays or denials of cash back.

Rakuten security

In its privacy policy, Rakuten says it has “implemented technical and organizational measures to provide a level of security appropriate to the risk to the personal information that we process.”

It also states that it evaluates these measures regularly to maintain an appropriate level of security.

Rakuten privacy

Rakuten explains in its privacy policy the types of data it collects, why, and with whom it shares this data.

It may collect the following personal information: 

• Personal identifiers: Name, email, address, and phone number.
• Device and browsing data: IP address, device details, pages visited, clicks, and app interactions.
• Shopping and transaction history, including Cash Back data.
• Customer payment information when needed.
• Inferences about your shopping preferences and interests.
• Location data, but only if you give permission.

The program collects this data directly from you (e.g., when you register, shop, participate in promotions, contact support, and apply for their credit card), automatically (through cookies, browser extensions, apps, and device interactions), and from third parties (such as partner merchants, referral sites, and social logins). 

Rakuten may use your data to provide and manage your account and Cash Back tracking, personalize your experience (showing relevant merchants, offers, and rewards), send marketing communications and special offers, improve services, run analytics, and understand usage trends. 

It may also use your information to prevent fraud and protect users, fulfill legal obligations, support promotions/contests, and run referral programs (if you choose to participate).

The program may share your data with service providers who support their operations (e.g., payment processors and customer support), affiliate networks and merchant partners to track purchases and Cash Back rewards, financial partners (such as those issuing the Rakuten credit card), and digital advertising partners for targeted ads (though you can opt out). 

Rakuten may also share it with other Rakuten Group companies (for internal business analysis), legal or governmental authorities (if required), and business acquirers if the company is sold or restructured.

It may also share de-identified or aggregated data.

Rakuten does not sell or use sensitive data (like precise location) to infer personal traits or for targeted advertising.

The program notes that you can update your account information and opt out of marketing emails, push notifications, and SMS. It also says you can turn off some data collection by uninstalling the mobile app or browser extension and use the Privacy Preference Center to control data sharing and targeted advertising.

Depending on where you live, you may have additional privacy rights, such as the right to request to see what personal data the program has about you, request deletion of your data, request corrections to inaccurate data, and opt out of “selling” or “sharing” your data and targeted advertising.

Rakuten will retain your data as required for legal or operational reasons, potentially including even after you request deletion. 

Rakuten’s privacy policy has been evaluated by the Common Sense Privacy Program, a project that rates internet services’ policies. The Common Sense Privacy Program gives Rakuten a “Warning” rating at the time of writing, meaning the policy “Does not meet our recommendations for privacy and security practices.”

So, Should You Use Rakuten?

Depends.

Rakuten may be beneficial for shoppers who frequently purchase online from participating merchants, are comfortable installing the browser extension, and can wait for quarterly payments. Those who hold the Rakuten American Express card or use AmEx points may enjoy extra rewards.

Rakuten may not suit people who want instant cash back, dislike sharing browsing data, or do not want to monitor purchases for missing rebates.  

How to Use Rakuten Safely and Privately 

• Be aware that Rakuten collects a lot of data. Rakuten gathers your personal details, device and browsing data, shopping and transaction history, and inferences about your shopping interests. If you want more privacy, limit where and how you use it.
• Limit or avoid the browser extension and mobile app. The extension and app automatically track browsing and interactions. If you want more privacy, use Rakuten only through the website, logging in to click a cash back link before shopping.
• Use the Privacy Preference Center. Rakuten allows you to opt out of targeted ads and limit data sharing for marketing. Doing this reduces how much of your data is sent to digital advertisers.
• Opt out of marketing communications. Rakuten sends marketing emails and notifications. But you can opt out of receiving marketing emails, push notifications, and SMS alerts.
• Be careful when stacking coupons or using ad blockers. According to user complaints, using ad blockers or certain coupon codes can disqualify cash back. This may also trigger Rakuten’s fraud filters. 
• Keep documentation of your purchases. Some users report cash back not tracking and/or delays or denials when filing missing cash back claims. It’s therefore a good idea to keep order confirmations, screenshots, and store receipts. That way, you can submit missing cash back claims with proof if needed. 
• Avoid behavior that looks like fraud. Rakuten sometimes bans accounts when large purchases are returned or high-value cash back deals are “stacked”. To stay safe, avoid repeatedly earning cash back and then returning items.