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Earning points through purchasing from certain stores

Answered as per Hanafi Fiqh by Muftionline.co.za

Q: I received the daily email which was regarding the impermissibility of the 3% cash back on the credit card. Many stores offer a point system which can be changed to cash to purchase in store. Is this permissible? If yes, what is the difference and what makes the first situation impermissible?

Bismillaah

A: The difference between the both is that the store is giving you the points as a gift for purchasing a product from them. On the other hand, the bank is awarding you with points as a gift but this is based on the loan that they are providing you with via the credit card. Hence, in this case, it is an addition to the exchange of a loan which falls under the definition of riba.

And Allah Ta’ala (الله تعالى) knows best.

Answered by:

Mufti Ebrahim Salejee (Isipingo Beach)

This answer was collected from MuftiOnline.co.za, where the questions have been answered by Mufti Zakaria Makada (Hafizahullah), who is currently a senior lecturer in the science of Hadith and Fiqh at Madrasah Ta’leemuddeen, Isipingo Beach, South Africa.

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