What Are Cashback Apps and How Do They Work?

Cashback apps and browser extensions reward you with a percentage of your purchase price returned to you after buying through their platform. The app earns a referral commission from the retailer and passes a portion of that back to you. It costs you nothing to use them — the discount comes out of the retailer's marketing budget, not your pocket.

The three most popular options in the English-speaking market are Rakuten, Ibotta, and TopCashback. Here's how they compare.

Quick Comparison Table

Feature Rakuten Ibotta TopCashback
Best for Online shopping Grocery and in-store Online, higher rates
Payout method PayPal or cheque PayPal, gift cards, Venmo PayPal, ACH, gift cards
Browser extension ✅ Yes Limited ✅ Yes
In-store cashback Limited ✅ Strong Limited
Retailer count Very large Focused on FMCG brands Very large
Membership fee Free Free (Plus tier available) Free (Plus tier available)

Rakuten: Best for Everyday Online Shopping

Rakuten (formerly Ebates) is the most well-known cashback platform in the US and has a broad network of major retailers. Its browser extension automatically detects when you're on a participating retailer's site and activates cashback with one click. Payouts happen quarterly via PayPal or physical cheque. It's the simplest and most beginner-friendly option for general online shopping.

Ibotta: Best for Groceries and In-Store Spending

Ibotta stands apart from the others because of its strong focus on grocery and in-store cashback. Rather than portal-based cashback, Ibotta works by having you select offers before shopping, then scanning your receipt (or linking a loyalty card) to claim rewards. It works at major supermarket chains and has become particularly popular for FMCG (fast-moving consumer goods) savings. It's less useful for big online purchases but excellent for regular household shopping.

TopCashback: Best for the Highest Rates

TopCashback frequently offers the highest cashback percentages among the three, partly because it operates on a lower-margin model and passes more of the retailer commission to users. It's particularly popular in the UK but has a strong US presence too. The interface is more functional than slick, but the rates often beat Rakuten for the same retailers. The Plus membership tier removes fees on certain cashback transactions.

Should You Use Just One or All Three?

There's nothing stopping you from using all three. A sensible approach is:

  1. Use Ibotta for weekly grocery and in-store shopping.
  2. Compare Rakuten vs. TopCashback rates before any significant online purchase and use whichever offers the higher percentage for that retailer on that day.
  3. Install browser extensions for both Rakuten and TopCashback so you're always prompted at checkout.

Important Caveats

  • Always start your shopping session through the cashback portal or activate the extension — cashback won't apply if you navigate directly to the retailer.
  • Allow sufficient time for cashback to track and clear before expecting a payout — this typically takes several weeks.
  • Cashback rates can change daily. The rate advertised when you click through is the rate that applies to that session.