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Credit Card Cash Backs

Answered according to Hanafi Fiqh by Qibla.com

Answered by Shaykh Muhammad ibn Adam al-Kawthari

What is the ruling on accepting cash back bonuses from credit cards. For example, a particular credit card company gives 1% cash back for all purchases through it. One must wait though till it reaches the level of $20 or more, or within a certain period of time.

Answer:
In the Name of Allah, Most Gracious, Most Merciful

In the name of Allah, Most Compassionate, Most Merciful,

If one uses the credit cards for purchasing and the bill is paid on time (and one has the ability to actually do so) without requiring to pay any interest, then it would be permissible to use them, as outlined by the contemporary scholars, such as Shaykh Taqi Usmani and major Arab scholars.

If the cash back bonuses from the usage of credit cards are a reward from the credit card companies in order to attract customers, then this is legally considered a gift (hiba).

If there are no other impermissible elements, such as gambling, then it would be permissible to accept such rewards and benefits. The same ruling is on bonus miles and points offered by the companies.

And Allah knows best

Muhammad ibn Adam al-Kawthari, UK

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