Rewards from credit cards

If the store one purchases from also provides loans (via credit cards, etc.) and attaches the condition that the one that purchases from their store via their credit card will receive discounts on their purchases, then since the discount obtained is on account of the loan, it will be riba (interest) and hence not permissible.

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

Q: Will a similar discount received by using a debit card be permissible as there is no loan?

A: The rewards one receives from the bank through using one's debit card is in actual fact in lieu of the loan one had given to the bank. Hence since this enters under the definition of riba, it will not be permissible.

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

Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)

Q: If the bank balance is zero or even negative i.e debit balance, a person will still receive these points in full on purchases, so how does Mufti Saheb conclude that the points granted is based on the loan given when there is no apparent correlation between them?

A: The ta'reef of riba is any extra preconditioned benefit which is not in lieu of anything irrespective of whether the benefit was reserved for the one accepting the loan or for the one giving the loan. Since the bank's operation is a riba based operation and they have announced to all those who deal with them that whoever deals with us will be entitled to these extra free benefits (i.e. in the case where you give us a loan or where we give you a loan, you will be entitled to these benefits). Hence this benefit enters under riba and it is impermissible for one to accept this benefit.

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

Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)