Answered by Shaykh Mazhar Mahmood
Question:
Is using credit card perks like pc points allowable in Islam? Or is it a form of riba? We don’t pay or accrue interest but we do get points we use for groceries. Same with gas credit cards. I use a petro card to save 2 cents a litre and accrue points that is used for car washes or to buy money saving gas cards. Is this allowable?
Answer:
We thank you for contacting Mathābah for your query, and commend the concern you show towards yearning to understand Islamicaly appropriate transactions.
It is permissible to use credit card perks, petro points and loyalty points, which are redeemable for cash, groceries or gas. They are given as an incentive by institutions and are considered a gift.
Muslim Theologians write that any such transactions which do not constitute the disobedience of Almighty Allāh are Islamicaly legitimate. (See: Contemporary Fatāwā; Muftī Taqī, 250)
Therefore, if per say the primary source of the loyalty points received are interest based in lue of deposited payments; it will be considered unlawful to redeem such points.
Ibrāhīm al Nakha’ī (may Allāh be pleased with him) says, “Surely, receiving gifts is permissible, so long as one has full possession over the gift they receive.” (Al Āthār; li Abī Yūsuf: 751)
Mentioned below are prophetic reports regarding the legitimacy of accepting gifts and incentives.
“The Messenger of Allāh (peace and blessings upon him) used to accept gifts and reward people for giving them.” (Bukhārī: 2585)
“Allāh’s Messenger (peace and blessings upon him) would partake of food which would be gifted to him. He (peace and blessings upon him) would abstain from food intended for charity.” (Sunan al-Tirmidhī: 656)
“Assist anybody who solemnly seeks assistance from you for the sake of the Almighty. Accept the invitation of those who invite you towards good. Whosoever presents you with a gift, (accept the gift) and recompense him/her with a benefaction. If you haven’t an adequate gift to present, then keep them in your prayers.” (Musnad Ahmad, 8:63)
Allāh Almighty Knows Best