Fatwa: # 23597
Category: Financial Transactions
Country: Canada
Date: 15th December 2012

Title

Is it permissible to use the point system given by the banks?

Question

Assalam o alekum,

I know that banking business and credit cards are haram due to involvement of RIBA, interest, is it permissable to have credit card and taking monetary benefits from them like points system, someone uses credit card and get points and those points will be paid back  as cash, this is an incentive to use credit card more.

Answer

In the name of Allah, Most Gracious, Most Merciful

Assalaamu `alaykum waRahmatullahi Wabarakatuh

It is permissible to make use of a credit card facility on condition the card holder makes timeous payments and avoids interest being charged to him.

The banks loyalty points (redeemable for cash, permissible gifts, mileage, etc.) given by such institutions is considered hiba (a gift) and Halaal for you to redeem and use.

However, if any reward points are given by the bank as interest on the money you deposited with them, or involve the purchase of bank products which are Haraam (prohibited) such as Treasuries, Mortgages, etc. then the reward points cannot be redeemed.

And Allah Ta’āla Knows Best

Hussein Issa,
Student of Darul Iftaa

Mozambique

Checked and Approved by,
Mufti Ebrahim Desai.
www.daruliftaa.net

DISCLAIMER - AskImam.org questions
AskImam.org answers issues pertaining to Shar'ah. Thereafter, these questions and answers are placed for public view on www.askimam.org for educational purposes. However, many of these answers are unique to a particular scenario and cannot be taken as a basis to establish a ruling in another situation or another environment. Askimam.org bears no responsibility with regards to these questions being used out of their intended context.
  • The Shar's ruling herein given is based specifically on the question posed and should be read in conjunction with the question.
  • AskImam.org bears no responsibility to any party who may or may not act on this answer and is being hereby exempted from loss or damage howsoever caused.
  • This answer may not be used as evidence in any Court of Law without prior written consent of AskImam.org.
  • Any or all links provided in our emails, answers and articles are restricted to the specific material being cited. Such referencing should not be taken as an endorsement of other contents of that website.
The Messenger of Allah said, "When Allah wishes good for someone, He bestows upon him the understanding of Deen."
[Al-Bukhari and Muslim]