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We use credit cards for our purchases and try to pay them off monthly, so that no interest is charged. Some credit cards have a cashback system

Answered according to Hanafi Fiqh by Askimam.org

My question is regarding credit cards. We use credit cards for our purchases and try to pay them off monthly, so that no interest is charged. Some credit cards have a cashback system, where if a person uses this credit card for the purchases, he will be paid 5% cashback bonus and others have the system of giving gifts.  So the question is, is this money (5% cashback) halaal?

Suppose there is some food/candies/cookies, etc which is mashbooh (doubtful……i.e. I am not sure about its contents/ingredients). Can this food be given to nonmuslim colleagues/neighbours?
What should be done regarding the gifts received from non-muslims? Sometimes my colleagues gives some cookies/cakes/pastries (homemade),etc.

Answer

1. If the cashback is a voluntary gift from the company, it will be permissible. If it is a material right accruing from the use of the credit card, it will be a form of interest and hence Haraam. In brief, a material right is one that can be claimed in court. In other words, should the company not give you the 5%, will you be able to legally claim it? If this is so, it is interest and Haraam.

If you are uncertain, give it away in charity without the intention of obtaining reward. The same applies to gifts.

2. Doubtful items may be given to non-Muslims.

3. It would be best to give these away.

And Allah Ta’ala knows best.

Was Salaam

Ml. E. Vawda
for Daarul Iftaa

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