Answered by Shaykh Umer Mian
Question: Assalam alaykum,
What is the ruling on a business setting up a loyalty program whereby customers earn points for each order they make?
Answer: Wa alaikum as-salam wa rahmatullahi wa barakatuhu
Loyalty programs such as what you have described are similar to rewards programs offered by many credit cards nowadays. The scholars are explicit that such rewards programs are permissible. See the answer below given by Mufti Taqi Usmani, a world-renowned Islamic legal scholar.
Rewards on Use of Credit Card
By Mufti Taqi Usmani
Q.) When using credit cards, some banks give bonus miles or bonus points for purchases and some other benefits. Please clarify it if we can use it. Every month I pay off the total of account without paying an extra cent of interest.
A.) If a Credit Card is used for purchases and the bills are paid promptly without requiring to pay interest on late payment, it is permissible and the benefits given by the Credit Card Company as rewards can be availed of. It is not impermissible to benefit from such rewards.
Wassalam.
Umer Mian