How to Double Dip: Stacking Rakuten Cash Back with Your Credit Card Rewards

If you are buying things online without stacking your rewards, you are leaving free money on the digital table! We talk a lot about the value of a solid credit card strategy, but that is only half of the equation.

When you combine a great rewards credit card with a shopping portal like Rakuten, you create what we call a "double dip." You get rewarded twice for a single purchase. Today, we are going to look at exactly how to do this, step-by-step.

What is Rakuten?

Before we get to the stacking, let us cover the basics. Rakuten is what we call a "shopping portal."

Instead of going directly to a store's website (like Nike.com or Macys.com), you go to Rakuten first. You search for the store, click their link, and shop exactly like you normally would.

Because Rakuten sent you to the store, the store pays Rakuten a commission. Rakuten then shares a portion of that commission with you in the form of cash back. It is that simple!

For a complete breakdown on how these portals work, check out our Shopping Rewards 101 guide.

The Magic of the Double Dip

Here is where it gets exciting.

When you click through Rakuten to go to a store, Rakuten tracks that purchase and gives you cash back. For example, let us say Rakuten is offering 10% cash back at Macy's. If you spend $100, Rakuten gives you $10 back.

But how are you paying for that $100 purchase?

You are paying for it with your credit card! The store processing the payment (Macy's) has no idea that you clicked through a shopping portal. They just see a standard transaction.

This means your credit card will also give you rewards for that purchase.

If you use a card that earns 2% cash back on all purchases, you will earn $2 from your credit card, plus the $10 from Rakuten. You just turned a standard purchase into a 12% return!

Setting Up Your Stack

If you want to start double dipping, setup is incredibly easy.

Step 1: Sign up for Rakuten If you do not have an account already, sign up for Rakuten - use this link to support Perks Academy. It is completely free. They will ask how you want to be paid. You can choose to get a "Big Fat Check" in the mail every quarter, or get paid via PayPal. Install the browser extension for maximum effectiveness.

Step 2: Choose Your Payment Card Decide which credit card you are going to use for your online shopping. If you are just getting started, a simple flat-rate 2% cash back card is perfect. If you have a card that earns bonuses for online shopping, even better!

Step 3: Always Start at Rakuten Whenever you need to buy something online, make it a habit to stop at Rakuten first. Search for the store you need, click the activation link, and let Rakuten redirect you to the retailer.

Step 4: Pay with Your Chosen Card When you get to the checkout page, make sure you use the rewards card you picked in Step 2.

Understanding the Big Picture

Stacking cash back is one of the easiest ways to accelerate your earnings without spending any extra money. All it requires is one extra click before you shop.

Over the course of a year, adding 5%, 10%, or even 15% cash back from Rakuten on top of your credit card rewards can add up to hundreds of dollars in completely free money.

Ready to dive deeper? Check out our Credit Cards 101 guide to make sure you are using the best card for your stack!