Karma vs Rakuten: Which Cashback App & Browser Extension Is Better in 2026?

**TL;DR

• 🔧 Karma and Rakuten both help you save money, but they take different approaches.
• 📉 Rakuten focuses on cashback and seasonal promos, with payouts via PayPal or check.
• ⚙️ Karma bundles cashback with automatic coupon codes, price drop alerts, and a cross-store wishlist, making it the all-in-one choice for shoppers who want more than just cashback.
• 📊 Rates vary by store and time, so check both before checkout.
• ✅ You can use them together on different purchases, but you can’t stack both on the same transaction.

Quick verdict: Karma vs Rakuten

If you’re choosing between Karma vs Rakuten, the right pick depends on how you shop and what features matter most to you.

Rakuten is a solid, cashback-focused platform with a large network of stores, PayPal or check payouts, and frequent seasonal promos. It’s straightforward: activate cashback before you buy, complete your purchase, and wait for your quarterly payout.

Karma takes an all-in-one approach, combining cashback with automatic coupon testing, price drop alerts, and a universal wishlist that tracks items across multiple stores. It’s designed for shoppers who want to time their purchases, not just earn rewards.

Best for cashback-only shoppers

Choose Rakuten if you want a simple, set-it-and-forget-it cashback experience. It’s especially strong at big-box retailers and during major shopping events (Black Friday, back-to-school). If you already know what you’re buying and just want cash back, Rakuten’s streamlined flow and established payout system deliver exactly that.

Best for all-in-one savings

Choose Karma if you want to layer multiple savings strategies. Karma automatically tests coupon codes at checkout, sends you alerts when prices drop on your wishlist items, and earns you cashback, all in one browser extension or app. It’s ideal for deal hunters, planners, and anyone shopping for big-ticket items where timing the purchase matters as much as the discount.

Can you use Karma and Rakuten together?

Yes, but not on the same purchase. You can install both and choose which one to activate depending on the store and current offers. Just remember that using multiple cashback tools on a single transaction can cause tracking issues or void your rewards. Always compare offers before checkout, pick one, and make sure it activates properly.

Important: Cashback rates change frequently based on store promotions and merchant agreements. Always check the current offer and read the terms before you buy.

Side-by-side comparison

Here’s how Karma and Rakuten stack up across the features that matter most when you’re choosing a top-rated shopping extensions.

Comparison table: features, payouts, platforms, and key differences

Feature	Karma	Rakuten
Cashback	Yes (varies by store)	Yes (varies by store)
Auto-apply coupons	Yes	No (shows available codes)
Price drop alerts	Yes	No
Wishlist / saved items	Yes (cross-store)	Limited
Supported devices	Chrome extension, mobile app (iOS/Android)	Browser extension, mobile app, website portal
Payout options	Varies (check Karma app)	PayPal or check
Payout schedule	Varies	Quarterly (every 3 months)
Minimum payout	Varies	$5.01
Typical activation	Auto-prompt at checkout	Click to activate before purchase
Price tracking	Built-in	Not available
Best for	All-in-one savings, deal hunters, planners	Cashback-only, seasonal shoppers

What matters most when choosing a cashback tool

When we evaluated Karma vs Rakuten, we focused on transparency, ease of use, and real-world shopping workflows, not just advertised features.

Here’s what we prioritized:

• Cashback clarity: Are rates easy to find? Are exclusions clearly stated?
• Activation simplicity: How many clicks does it take to turn on savings?
• Payout reliability: What’s the process if cashback doesn’t track?
• Extra value: Does the tool offer features beyond cashback (coupons, tracking, alerts)?
• Privacy & trust: What permissions does the extension request, and is the company transparent about data use?

Both platforms are legitimate and widely used, but they serve different types of shoppers. The rest of this guide breaks down exactly when each one wins.

How Karma works

Karma is built for shoppers who want to maximize savings at every stage, before, during, and after they click “buy.”

Cashback + coupons in one flow

When you install the Karma browser extension or mobile app, it works in the background as you shop. As you browse, Karma identifies eligible products and stores, then activates at checkout.

Here’s the typical flow:

1. You add items to your cart on any supported retailer.
2. At checkout, Karma automatically tests available coupon codes and applies the best one.
3. If cashback is available, Karma prompts you to activate it with one click.
4. You complete your purchase, and your cashback is tracked.

This integration means you’re not bouncing between coupon sites, cashback portals, and price trackers, it all happens in one place.

Price drop alerts & tracking

Karma’s price tracker is one of its standout features. You can save any product to your Karma wishlist, and the tool monitors the price across multiple retailers.

When the price drops (or the item comes back in stock), Karma sends you an alert. This is especially valuable for:

• Big-ticket items (electronics, furniture, appliances)
• Seasonal purchases where you’re willing to wait for a sale
• Limited-edition or frequently out-of-stock products

Price tracking is a separate savings lever from cashback, it helps you time your purchase to get the best possible price, not just earn a rebate on whatever the current price is.

Save list / wishlist across stores

Unlike single-retailer wishlists (Amazon, Target, etc.), Karma’s wishlist works across hundreds of stores. You can save a couch from Wayfair, a laptop from Best Buy, and shoes from Nordstrom, all in one place.

Karma tracks all of them and notifies you when any item drops in price or goes on sale. For planners and comparison shoppers, this cross-store view is a game-changer.

Best for:

• Deal hunters who want alerts, not just discounts
• Shoppers planning big purchases who can wait for the right price
• Anyone who shops across multiple stores and wants one unified wishlist

How Rakuten works

Rakuten (formerly Ebates) is one of the most established names in online cashback. It’s been around since 1997 and has paid out billions in cashback to members.

Cashback focus and activation model

Rakuten’s core value proposition is simple: shop through Rakuten, earn cash back.

Here’s how it works:

1. Before you shop, visit Rakuten.com or open the browser extension.
2. Search for the store you want to shop at and click through to activate cashback.
3. Complete your purchase as usual on the retailer’s site.
4. Rakuten tracks your transaction and credits your account (after the return window closes).

Rakuten doesn’t auto-apply coupons or track prices, it focuses exclusively on cashback. If you want codes, you’ll need to find them separately (Rakuten may display available codes, but it won’t test them for you).

Payout methods

Rakuten pays out every three months, either via PayPal or by mailing a physical check. The minimum payout threshold is $5.01.

According to Rakuten’s help center, your “Big Fat Check” (PayPal payment or mailed check) arrives quarterly, February, May, August, and November. You can choose your preferred method in your account settings.

This quarterly cadence is slower than some competitors, but the PayPal option is convenient and the threshold is low.

Store network and seasonal promos

Rakuten partners with thousands of retailers, from major chains (Walmart, Macy’s, Best Buy) to niche brands. Cashback rates vary widely, anywhere from 1% to 10%+ depending on the store and current promotions.

Rakuten is especially aggressive during shopping holidays. Black Friday, Cyber Monday, and back-to-school events often feature double cashback or elevated rates at popular stores. If you’re a seasonal shopper who makes big purchases a few times a year, Rakuten’s promo calendar can deliver serious value.

Best for:

• Shoppers who want cashback only and don’t need extra features
• Big-box and department store shoppers
• Seasonal or event-driven buyers (holiday shopping, annual sales)

For a broader comparison of cashback platforms, check out our guide to the best cashback apps.

Cashback rates: who tends to win?

This is the question everyone asks, and the honest answer is: it depends.

Cashback rates fluctuate constantly based on merchant agreements, promotions, and seasonal campaigns. One week Karma might offer 5% at a given store; the next week Rakuten might offer 8%. Or vice versa.

Why rates change

Cashback platforms negotiate rates with merchants, and those deals change regularly. A store might boost its rate to drive traffic during a slow period, then lower it when demand is high.

External factors also play a role:

• Shopping holidays: Black Friday, Prime Day, and other events often trigger rate increases.
• New partnerships: When a platform adds a new merchant, the introductory rate is often higher.
• Category shifts: Electronics, fashion, and travel all have different margin structures, which affect cashback rates.

Because of this variability, you should never assume one platform always pays more. The only way to know is to check both at the moment you’re ready to buy.

How to compare offers in under 60 seconds

Here’s a simple workflow:

1. Add items to your cart on the retailer’s site.
2. Open the Karma extension (or app) and check the current cashback rate and any available coupons.
3. Open the Rakuten extension (or site) and check the current cashback rate.
4. Read the exclusions and activation requirements for both.
5. Choose the higher rate (or the one with the better terms), activate it, and complete your purchase.

Don’t forget to factor in other features. If Karma offers 3% cashback plus a $10-off coupon and price tracking, that might be more valuable than Rakuten’s 4% cashback alone.

Tips to maximize cashback

Whether you choose Karma, Rakuten, or another platform, these habits will help you earn more:

• Always start from the extension or app. Don’t just visit the retailer directly, activate cashback first.
• Read the exclusions. Some categories (gift cards, certain brands, sale items) may be excluded from cashback.
• Avoid mixing coupon sources. If the cashback terms say “third-party codes may void cashback,” don’t add random codes from other sites.
• Keep your order confirmation. If cashback doesn’t track, you’ll need your order number to file a claim.
• Wait out the pending period. Cashback isn’t instant, it has to clear the return window and merchant confirmation process.

For more strategies, see our full guide on ways to save money shopping online.

Coupons: automatic codes, stacking, and when coupons can cancel cashback

Coupons and cashback can work together beautifully, or they can conflict. Understanding the difference between how Karma and Rakuten handle coupons is critical.

Auto-apply coupons vs. ‘available coupons’ lists

Karma automatically tests coupon codes at checkout. When you’re on a supported retailer’s payment page, Karma runs through its database of active codes, applies them one by one, and keeps the best discount. You don’t have to copy-paste or hunt for codes.

Rakuten, on the other hand, shows you available codes but doesn’t apply them automatically. You’ll see a list of codes, and you can try them manually if you want. This is less convenient, but it also gives you more control.

If you want a deep dive into how automatic coupon code extensions work, we’ve covered the mechanics in detail.

Cashback + coupon stacking: what to watch for

Here’s the tricky part: some merchants will void or reduce your cashback if you use a coupon code that didn’t come from the cashback platform.

For example:

• You activate Rakuten cashback.
• You manually enter a promo code you found on a random coupon site.
• The merchant’s terms say “cashback not valid with third-party codes.”
• Your cashback gets denied or clawed back.

Karma reduces this risk because its coupons are integrated into the same system that tracks cashback. When Karma applies a code, it’s doing so within the approved flow. Rakuten doesn’t have that same integration, so you need to be more careful about where your codes come from.

Golden rule: If you’re using a cashback tool, only use coupons that the tool provides or explicitly approves. Don’t add random codes at the last second.

Common exclusions that trip people up

Even when you follow the rules, certain situations can disqualify your cashback:

• Gift cards: Most cashback programs exclude gift card purchases.
• Sale or clearance items: Some merchants exclude already-discounted merchandise.
• Certain brands or categories: Luxury goods, electronics, or specific product lines may be carved out.
• Using multiple tabs or devices: Switching devices mid-purchase can break the tracking cookie.
• Ad blockers or privacy extensions: These can interfere with cashback tracking.

Always read the offer terms before you buy, and disable conflicting browser extensions when you’re making a cashback purchase.

For more on choosing the right best coupon extensions, we’ve tested and reviewed the top options.

Price tracking & alerts: Karma’s advantage

This is where Karma pulls ahead for a specific type of shopper: the planner.

Price drop alerts

Rakuten doesn’t offer price tracking. If you want to know when an item goes on sale, you have to check manually or rely on the retailer’s own notifications.

Karma, by contrast, has price drop alerts baked into the platform. Save an item to your Karma wishlist, and the extension monitors it across retailers. When the price drops by a meaningful amount, you get an alert (email, push notification, or in-app).

This turns Karma into a timing tool, not just a discount tool. Instead of buying today and hoping for the best, you can wait for the optimal price, then activate cashback when you’re ready to buy.

Back-in-stock alerts

Karma also tracks availability. If an item sells out, Karma can notify you when it’s back in stock. This is especially useful for:

• Limited-edition releases (sneakers, collectibles, electronics)
• Seasonal items that sell out quickly
• Products with unpredictable restocking schedules

Rakuten has no equivalent feature.

When price tracking matters more than cashback

Imagine you’re shopping for a $1,200 laptop. Rakuten offers 2% cashback ($24). But if you wait two weeks and the laptop drops to $1,000, you save $200, far more than the cashback would have earned.

For big-ticket purchases, price tracking often delivers more value than cashback. The ideal strategy? Use Karma to track the price, wait for a drop, then activate cashback when you buy. You get both the sale price and the rebate.

Payout speed, minimums, and reliability: what to consider

Cashback isn’t useful if you never actually get paid. Here’s what to know about how Karma and Rakuten handle payouts, and what to do if something goes wrong.

Pending periods and return windows

When you earn cashback, it starts in a “pending” state. This is normal and happens with every cashback platform.

Why? Because merchants need time to confirm that you didn’t:

• Return the item
• Cancel the order
• Violate the terms (e.g., use an excluded coupon)

Rakuten’s pending period varies by merchant but typically ranges from a few days to 90+ days. Once your purchase clears, the cashback moves to “available” and will be included in your next quarterly payout.

Karma’s process is similar, though the exact timing depends on the merchant. Check the Karma app or extension for status updates on individual transactions.

Missing cashback claims: how they typically work

Sometimes cashback doesn’t track. It happens to everyone, and it’s not always the platform’s fault. Common causes include:

• Disabling cookies or using incognito mode
• Visiting the retailer before activating cashback
• Completing the purchase on a different device or browser
• Using an ad blocker or privacy tool that blocks tracking scripts

If your cashback doesn’t appear within the expected timeframe, both platforms have a claims process:

1. Log in to your account.
2. Navigate to the missing cashback or help section.
3. Submit your order details (confirmation email, order number, purchase date, amount).
4. Wait for the support team to review and credit your account (if eligible).

Pro tip: Always keep your order confirmation emails until your cashback posts. You’ll need them if you have to file a claim.

Customer support expectations

Both Karma and Rakuten offer support via email and help centers. Rakuten also has a robust FAQ database and community forum.

Response times vary, but in general:

• Routine questions (payout schedule, how to activate) are answered quickly via help articles.
• Missing cashback claims can take several days to a few weeks, depending on the merchant’s confirmation process.

Neither platform offers phone support for most users, so expect to handle issues via web forms or chat.

Browser extension + mobile app experience

How a tool works in real life, at checkout, on your phone, across devices, matters just as much as the features it promises.

Ease of use during checkout

Karma: When you reach a supported retailer’s checkout page, the Karma extension pops up a small notification showing available coupons and cashback. Click to activate, and Karma tests codes automatically. The whole process takes 10–20 seconds.

Rakuten: The Rakuten extension shows a banner or button prompting you to activate cashback. You click it, and cashback is turned on. If you want to use a coupon, you’ll need to manually copy and paste codes from Rakuten’s list. This adds extra steps but gives you more control over which codes you try.

Both approaches work, but Karma’s auto-apply flow is faster and requires fewer decisions.

Notifications and friction

Shopping extensions can be helpful or annoying, depending on how they handle notifications.

Karma sends alerts for price drops, back-in-stock items, and cashback opportunities. You can control notification preferences in the app or extension settings. If you don’t want pop-ups, turn them off and check your Karma dashboard manually.

Rakuten is more conservative with notifications. You’ll get reminders about quarterly payouts and occasional promotional emails, but the extension itself is quieter during browsing.

If you prefer a low-friction experience, adjust your settings early. Both platforms let you customize how often and where you get notified.

Cross-device shopping

Most people browse on mobile and buy on desktop, or vice versa. Both Karma and Rakuten support cross-device workflows, but with some caveats.

• Karma: Install the browser extension on your computer and the mobile app on your phone. Your wishlist, alerts, and account sync across devices. You can save an item on mobile and get notified on desktop when the price drops.
• Rakuten: Use the browser extension, mobile app, or web portal. Cashback activation works on all three, but you need to activate cashback on the same device where you complete the purchase. Switching devices mid-session can break tracking.

Best practice: If you browse on your phone but prefer to check out on a laptop, save items to your wishlist (Karma) or bookmark them, then activate cashback on the device where you’ll actually buy.

Privacy & security

Browser extensions request permissions to read and modify web pages. That’s necessary for them to work, but it also raises legitimate privacy questions.

What shopping extensions typically collect

To deliver cashback, coupons, and price tracking, extensions need to:

• See what pages you visit (to detect retailers and products)
• Read your cart contents (to test coupons and calculate cashback)
• Send transaction data to their servers (to confirm purchases and track earnings)

This doesn’t mean they’re spying on you, but it does mean they have visibility into your shopping activity.

Both Karma and Rakuten publish privacy policies that describe what data they collect and how they use it. Read those policies if you want full transparency.

How to evaluate trust

When choosing a shopping extension, check:

• Chrome Web Store (or Firefox Add-ons) rating and review count: Millions of users and a 4+ star average is a good sign.
• Permissions requested: Does the extension ask for more access than it needs? (E.g., reading all your browsing history vs. just retailer sites.)
• Company transparency: Does the company clearly explain how it makes money? (Affiliate commissions and merchant partnerships are the standard model.)
• Public track record: Has the extension been flagged for security issues or deceptive practices?

Rakuten has been around since 1997 and has a well-established reputation. Karma is newer but has earned millions of downloads and strong reviews. Both are considered legitimate and safe by mainstream standards.

Your safest setup

If you’re privacy-conscious, follow these best practices:

• Only install extensions from official sources (Chrome Web Store, Apple App Store, Google Play).
• Review and adjust permissions in your browser settings.
• Use strong, unique passwords for your shopping accounts.
• Monitor your cashback account regularly for unusual activity.
• Disable extensions you’re not actively using (or remove them entirely).

No extension is 100% risk-free, but the major platforms have strong incentives to protect user data, they’re operating in a competitive, reputation-driven market.

Which should you choose?

Still not sure? Here’s how to decide based on your shopping habits.

If you want maximum cashback

Check both. Rates change constantly, and neither platform always wins. Install both extensions, compare offers at checkout, and activate whichever one pays more for that specific purchase.

If you want ‘set it and forget it’ savings

Choose Karma. Its auto-apply coupons, price alerts, and integrated cashback mean you don’t have to think as much. Turn on the extension, shop normally, and let Karma handle the rest.

If you love tracking and planning purchases

Choose Karma. The cross-store wishlist, price drop alerts, and back-in-stock notifications are designed for planners who want to time their purchases and track deals over weeks or months.

If you shop mostly on mobile

Choose Karma. Both platforms have mobile apps, but Karma’s app is more fully featured, price tracking, wishlist, and alerts all work seamlessly on iOS and Android. Rakuten’s mobile app is solid for cashback activation, but it lacks the planning and tracking tools that make Karma stand out on mobile.

If you’re loyal to PayPal or prefer checks

Choose Rakuten. If you specifically want PayPal payouts or the nostalgic thrill of a physical “Big Fat Check,” Rakuten delivers that. Karma’s payout options vary, so check the current terms in the app.

If you want to try both

Go ahead, just don’t activate them both on the same purchase. Use Rakuten for stores where it has the better rate, and use Karma for stores where its all-in-one features (coupons + tracking + cashback) add up to more value.

Ready to get started? Install Karma for free and start saving on your next purchase.

Final thoughts

When comparing Karma vs Rakuten, there’s no universal “better” choice, it depends on what you value most.

If you want a cashback-only experience with quarterly PayPal payouts and strong performance at big-box stores, Rakuten is a proven, reliable option.

If you want an all-in-one shopping assistant that combines cashback, automatic coupons, price tracking, and a cross-store wishlist, Karma gives you more tools to save money, not just at checkout, but before and after you buy.

The smartest move? Try both, compare offers on your next few purchases, and stick with the one that saves you more with less effort. Cashback rates change, promotions come and go, and your shopping habits evolve, so choose the platform that fits the way you actually shop, not just the one with the flashiest promo.

Ready to start saving smarter? Get the Karma extension and let it do the heavy lifting on your next purchase.

FAQs: Karma vs Rakuten

Is Karma legit?

Yes. Karma is a legitimate shopping assistant with millions of downloads across browser extensions and mobile apps. It earns money through affiliate commissions when you make purchases through the platform, which funds the cashback and coupon features. User reviews on the Chrome Web Store and app stores are generally positive, and the company is transparent about how it operates.

Is Rakuten legit?

Yes. Rakuten (formerly Ebates) has been operating since 1997 and has paid out billions of dollars in cashback to members. It’s one of the most established names in online shopping rewards. The company is publicly traded and partners with thousands of major retailers. According to CNBC Select, Rakuten is widely regarded as a trusted cashback platform.

Can I use Karma and Rakuten at the same time?

You can install both, but you should only activate one per purchase. Using multiple cashback extensions on the same transaction can cause tracking conflicts, and you’ll likely end up with no cashback at all, or the merchant may void your rewards. Compare rates before checkout, choose the better offer, activate it, and complete your purchase through that one platform.

Why didn’t my cashback track?

Common reasons include: not activating cashback before shopping, using incognito or private browsing mode, switching devices mid-purchase, having ad blockers or privacy extensions enabled, or using coupon codes from outside the cashback platform. To fix it, file a missing cashback claim with your order details (confirmation number, date, amount) and wait for the support team to review it. In the future, always start from the extension, disable conflicting tools, and complete your purchase on the same device where you activated cashback.

Do coupon codes affect cashback?

Sometimes. Many merchants allow cashback and coupons to stack, but only if the coupon comes from an approved source (like the cashback platform itself). If you add a “third-party” code from a random coupon site, some merchants will reduce or void your cashback. Always use coupons provided by the cashback tool you’re using, and read the offer terms before you buy. Karma’s auto-apply feature reduces this risk by only testing approved codes within its own system.