Ibotta vs Ebates (Rakuten): Which One Is Best?

Updated: Aug 19, 2020

Saving money on your purchases is easier than ever with cash back apps. There are so many now, but two of the best cash back apps are Ibotta and Ebates. The only question is, which is best between Ibotta vs Ebates?

If your focus is earning cash back while shopping for groceries, Ibotta offers are the best choice. But if you do a lot of shopping online and want to earn on those purchases, Ebates is the better option.

Related Article: Best Ibotta Review 2020. Is Ibotta Legit?

That’s right. In the Ibotta vs Ebates (now called Rakuten) showdown, the winner depends on your shopping habits. But these two apps are constantly improving their features and moving into each other’s space.

So, while Ibotta is #1 for in-store grocery shopping, you will see some grocery stores on Rakuten. Likewise, you’ll find some online shopping in the Ibotta app.

So, which one is right for you? Stick with us a few minutes and you’ll learn what these apps are, how they work, and which one is best for you!

What Are Cashback Apps Anyway?

Cashback apps are programs that give you rewards (cash and gift cards) when you make purchases through their app or website.

They have affiliate agreements with a ton of partner brands like Amazon, Macy’s, Best Buy, Walmart, Nike… you name it.

The retailers then pay a commission to the cash back app for sending customers to their store or website. But instead of keeping the commission all for themselves, the cash back app shares a portion with you! 

It’s win-win-win!

Are Cashback Apps Worth It?

Cashback apps can be worth it if you use them consistently. But if you forget to use it often, or you’re not willing to buy off-brand items, it might not be worth the effort.

You can still earn money and gift cards, it’ll just take a lot more time before you earn enough to cash out.

Are Cashback Apps Safe?

While I can’t speak for every cash back app out there (there are way too many!) I can tell you that for Rakuten vs Ibotta, both are legit and safe to use!

Both have been able to maintain relationships with huge retailers and millions of users because they provide a legit service!

And if you connect your bank card to either Rakuten or Ibotta, they will store your data in a secure and encrypted environment so you can be sure it’s safe!

What is Rakuten (Ebates)?

Ebates was a California based company that launched in 1999. In the beginning, it offered cash back rebates from around 40 online retailers.

In 2014, Rakuten bought Ebates, which is why Ebates’ name changed, but not much else changed with the company. You can still sign up for free and start earning cashback from your favorite online stores.

Since starting out, the number of Rakuten’s retail partners has skyrocketed to over 2,500! And they’ve paid out over $1 billion to their users since the company launched the program all those years ago!

What is Ibotta?

Ibotta was founded in 2012 as a way for users to earn cashback rewards on grocery store purchases.

The company has expanded its features to include cashback for online store purchases, restaurants, and more. But their biggest component is still grocery stores.

This cashback app has over 1,500 retail partnerships and has paid out over $600,000 to its members since it was launched.

What’s the Catch With Rakuten and Ibotta?

The catch is that you’re the product. Every time an app user buys from a store or website, Ibotta or Ebates gets a commission.

The goal is for you to buy, but that shouldn’t be a problem as long as you don’t buy things you don’t need.

And it’s not necessarily a terrible thing either, because you get some of that commission as well!

How Does Rakuten Work?

You can make money with Rakuten in three easy steps:

1) Sign up With Rakuten

To register, visit Rakuten.com and sign up using your email address, Facebook account, Google account or Apple ID.

You can also download the Rakuten Cash Back Button for your browser. It will automatically notify you of discounts when you visit online retailers.

Sign up for Rakuten through our link and get a $10 welcome bonus! 

2) Search Rakuten For Your Favorite Retailer And Shop as Usual

After you become a Rakuten member, make sure you do all your online shopping through Rakuten’s website!

So, instead of going directly to Amazon’s site, or Best Buy’s site (or whoever else’s site), go to Rakuten and sign in first.

Then find Amazon or Best Buy (or whoever else) and let Rakuten redirect you to their site so you can earn cashback on your purchase.

3) Get Paid!

After you make your purchases, you’ll see a credit in your Rakuten account that you can redeem for a check or a deposit into your Paypal account. It’s that easy.

To get started, be sure to sign up through our link and receive a $10 Ebates joining bonus!

Pros and Cons of Rakuten:

Pros:

• They offer a $10 bonus when you sign up.
• There’s a low cashout threshold
• Over 2,500 retail store available
• There are several ways to save money with Rakuten

Cons:

• You can only cash out once every 3 months
• Cash back takes time to be credited to your account

How Does Ibotta Work?

Ibotta’s process is slightly different from Rakuten’s, but it’s still easy.

1) Download The Ibotta App

You only need a smartphone and an email address. Sign up for Ibotta here.

Sign up for Ibotta through our link and get a $20 sign up bonus! 

Important! There’s a 3 step process you need to complete to get your $20. Get the details in our Ibotta review.

2) Look For Product Offers And go Shopping as Usual

After you sign up, browse Ibotta offers before you go shopping.

The offers are essentially digital coupons. After selecting the one you want, add it to your account by clicking the plus sign.

After you’ve added your offers, go shopping for the product at the grocery stores of your choice.

3) Redeem Your Offers

Now that you’ve made your purchases, you need to prove it to get credit! You can do this by taking a picture of your grocery receipt and uploading it to the app.

If you don’t want to scan receipts every time you make a purchase, Ibotta has a feature that lets you link your store loyalty card to your Ibotta account. If you do that, the app will automatically give you credit for any offers you pay for using your loyalty card.

A third option is to make online purchases through Ibotta. While this is rarer than in-store offers, you can earn cashback from some online stores without needing to keep track of receipts.

4) Get Paid!

That’s all! After scanning your receipt, Ibotta will credit your money to your account. Once you reach a $20 balance, you can cash out for money or a gift card!

And when you sign up here, you’ll get a $20 Ibotta joining bonus!

Here’s a quick video explaining how this cashback works.

Pros And Cons of Ibotta

Pros:

• They offer a $20 sign up bonus
• You can cash out whenever you want
• They offer cash and gift cards
• Over 1,500 partner store available

Cons:

• You don’t earn cash back automatically. You need to select offers in advance and scan receipts.
• There’s a $20 cashout threshold

Important! There’s a 3 step process you need to complete to get your $20 bonus. Get the details in our Ibotta review.

What Are My Payout Options With Rakuten?

Rakuten gives you two options for receiving your cash payout.

• A check in the mail
• Your PayPal account

Keep in mind, you need at least $5.01 in your account to receive a payout. Also, you get paid every three months based on the following schedule:

What Are My Payout Options With Ibotta?

With Ibotta, you also have two easy-to-use options for withdrawing your money.

• Get a gift card for your favorite store (some cards require a minimum of $25)
• Get cash in your Paypal account

You must have at least $20 in your account before you can cash out.

But you don’t have to wait for a specific date to get your money. As long as you have $20 in your account, you can get cash or get a gift card whenever you want! Yay!

Which Stores Work With Rakuten?

Both Rakuten and Ibotta have plenty of retailers to choose from, but Rakuten has the most.

With Rakuten, you’ll find over 2,500 online store to choose from. Most of the stores sell clothes, jewelry, electronics and other accessories. But you can get the full list from Rakuten’s site.

Which Stores Work With Ibotta?

There are over 1,500 stores on Ibotta–Costco, Kroger, Walmart, and others. But most of their retailers are grocery stores. Check out their page here for a full list of stores that partner with Ibotta.

Does Cash in My Rakuten Account Expire?

No, the money in your Ebates account doesn’t “expire”, but if your account becomes inactive, they will charge you a $2.00 maintenance fee until your cash back balance reaches $0.

Your account becomes inactive if you have done nothing with it for 12 months straight.

Another thing to keep in mind is that if you receive a “Big Fat Check” from Rakuten, it’s valid for 6 months from the issue date.

But don’t worry, if you have an expired check from Ebates you can contact them to get a replacement.

Does Cash in My Ibotta Account Expire?

No, the money in your Ibotta account doesn’t “expire” either, but they can charge you for inactivity. If you don’t use the app to redeem an offer for six months, they will start charging you a “maintenance fee” of $3.99 per month until your balance drops to $0.

More Ways to Earn Money With Rakuten

Besides going through Rakuten’s website, there are other ways to save money:

• Use Rakuten Mobile App – the app will redirect you to the retailer’s website on your phone where you can make your purchases.
• Cash back button browser extension – add this plug-in to your browser to get automatic cash back notifications even when you don’t go through Rakuten’s website.
• Rakuten credit card – earn cashback when you make purchases with the Rakuten Visa Card
• Link your credit card to your Ebates account and earn cashback on some in-store purchases.
• Shop at stores that offer double cash back
• Use Ebates’s referral program to make extra money

You can make extra money by referring friends and family to use the app. Once they make their first purchase and spend their first $25 you will receive your $25 and they get $10! Start referring to your friend and family now!

More Ways to Earn Money With Ibotta

Besides using the mobile app, there are a few other ways to make money with Ibotta:

• Use the Ibotta plug-in for Google Chrome to earn cash back on your online purchases
• Use Pay with Ibotta – link your debit card to Ibotta and make money when you shop at participating stores
• Link your loyalty cards to Ibotta to earn cash on qualifying offers

How Much Does it Cost to Join Rakuten or Ibotta?

It doesn’t cost you anything to sign up with Rakuten or Ibotta, but it costs them something.

Ebates will pay you a $10 sign-up bonus for registering with them.

Likewise, Ibotta will pay you a $20 sign-up bonus for downloading their app.

It’s like they’re paying you for the privilege of giving you more money! Be sure to take advantage!

Are Rakuten And Ibotta Worth it?

Ibotta is fantastic for grocery store shoppers because it provides tons of coupons. And let’s be real, we’re all grocery shoppers.

If you’re disciplined about checking the app before you go to the store and don’t mind buying off-brand items, it’s worth it. But if you only check the app every so often, you’re probably not going to earn much.

Rakuten,  on the other hand, caters mainly to online consumers out to buy clothing, shoes and other accessories. If you shop online at all, then you’ll definitely find it worth your time.

It’s easy money.

Can I Use Ebates And Ibotta Together?

Absolutely! Keep in mind that Ibotta and Rakuten work with different stores and the more types of purchase you can earn extra money on, the better!

So, if you’re wondering whether you can use Ibotta and Rakuten together, the answer is yes! You can and should use both to maximize your earnings!

Which is Better: Rakuten or Ibotta?

Both Rakuten and Ibotta have their strengths, but the one that works best for you depends on what type of shopping you do most of the time.

Do you go to the grocery store often? Then you may earn more money if you use the app. Do you shop on Amazon every day looking for the perfect item? In that case, you may earn more money with Ebates.

The fact is, each app is a brilliant shopping partner if you spend regularly and are looking for extra savings.

But before you do any buying, remember to download the Ibotta app through our link to get your bonus $20 and start earning cash back.

And sign up with Rakuten to receive another $10!

So, in the battle of these two great apps, who comes out on top? Both!

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