Honey works as a free browser extension that tests available promo codes at checkout on 30,000+ sites and applies the biggest saving, and on some stores it also earns PayPal Rewards points because merchants pay Honey a commission. The catch is patience: points sit pending for about 60-90 days before you can redeem them.
Honey, now called PayPal Honey, is probably the best-known shopping extension around, and most people only use half of it. Beyond testing codes, it tracks prices and pays points on some purchases, each with its own rules. Here's how it all works, using Honey's own help centre.
How Honey makes money
Honey says it earns commissions from merchant partners when you use it to find savings or activate PayPal Rewards, working with affiliate networks to confirm your purchase. It passes some of those earnings back to you as PayPal Rewards points, which is how it stays free.
Testing promo codes at checkout
- Install Honey on Chrome, Firefox, Safari, Opera or Edge.
- Shop as normal. An orange h in your toolbar means Honey supports that site.
- At checkout, click Apply Coupons when the Honey window appears.
- Honey tests the codes it has found and applies the one with the biggest saving, or tells you none beat your current price.
On Chrome, if you can't see the h, it may be hiding under the puzzle-piece extensions icon; pin it to your toolbar so you notice it.
How PayPal Rewards points work
Points aren't offered at every store Honey supports. Where points are on offer, you'll see it in the extension. Click Activate Rewards, then Apply Coupons at checkout, and points are earned on the subtotal of eligible items. Tax and shipping don't count, and each merchant sets its own exclusions.
| Stage | What Honey says |
|---|---|
| Purchase appears as pending | Within 2-14 days |
| Pending period | About 60-90 days, until the merchant confirms |
| Returns or refunds | Reduce the points you earn |
| Travel bookings | Only appear after the stay is completed |
| Missing after 14 days | Contact Honey |
Pending points can't be used or redeemed. That long wait exists because the merchant's return window has to close first.
Why points go missing
The most common cause is running more than one rewards program. Honey says that when you use two or more, the credit can only go to one of them, and it can't move a purchase afterwards. If Honey matters to you for a particular purchase, switch other reward extensions off first, because there's no way to fix the credit after the order goes through. Having two Honey accounts by mistake is another cause, and Honey says it can merge them.
Redeeming your points
- Gift cards: US members need 1,000 points for a gift card.
- PayPal checkout: redeem points wherever you pay with PayPal, but only in the US, with a valid US personal PayPal account in good standing.
- No take-backs: once redeemed, Honey can't cancel the redemption or change its type.
If you redeem points in PayPal checkout and the order is later refunded, Honey says the points go back to your balance once the refund completes. US members can also connect their PayPal Rewards and Honey points into one balance.
Honey Checkout
Some stores also show an option called Honey Checkout after Honey has searched for codes and rewards. Honey says it's powered by PayPal, it still looks for codes and rewards on your order first, and if you've activated an Exclusive Offer you can still earn points on eligible purchases. Because PayPal processes the payment, the charge appears on your statement as PP*Merchant rather than the store's usual name, which is worth knowing before you wonder what a strange entry is.
You don't have to use it. Honey says you can choose any checkout option, and the codes and rewards work the same way either way.
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The expiry rule
Points expire if you don't earn at least 10 points in each consecutive 365-day period. Alternatively, link your PayPal account and complete at least 3 eligible PayPal transactions in each 365-day period. Your PayPal and Honey email addresses must match for that to count. If you only use Honey now and then, put a yearly reminder in your calendar so a quiet year doesn't quietly wipe out your balance.
Droplist: Honey's price tracker
Droplist watches prices for you. Add an item from its product page and choose the percentage drop you care about, and Honey emails you if it detects the price falling that far. There's no limit to the number of items, and shipping, tax and other costs aren't counted in the price. It's available to US and international members, though not on every site.
My verdict on how Honey works
Honey is worth installing for the automatic code testing and Droplist alone, both of which work outside the US. The PayPal Rewards points are a slow bonus: expect two to three months before they're usable, and redeeming through PayPal is US-only. Turn off rival reward extensions, earn at least a few points a year, and treat any rewards as a pleasant extra. For more ways to save, see my money-saving sites for tech products and my tips to save money and avoid a loan.
Frequently asked questions
How does Honey make money?
Honey earns commissions from merchant partners when you use it to find savings or activate PayPal Rewards, and passes some back to you as points.
How long do Honey points take?
Purchases appear as pending within 2-14 days and stay pending for about 60-90 days until the merchant confirms them.
Do Honey points expire?
Yes, if you don't earn at least 10 points in each 365-day period, unless you link PayPal and make 3 eligible PayPal transactions in that period.
How many Honey points do I need for a gift card?
Honey says US members need 1,000 points for a gift card.
Does Honey work outside the US?
Code testing and Droplist are available internationally, but redeeming points within PayPal is only available in the US.
