Darul Iftaa Mahmudiyyah

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

· 2 Safar 1434 AH1 min readFatwa 23597English

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

Answered by
Hussein Issa
Checked & approved by
Mufti Ebrahim Desai
View original Compare with other Darul Iftas
Questions about this ruling, answered only from the archive with sources.

Where scholars differ, it’s safer to take the more cautious view.

Fatawa SA is an independent, read-only index of fatawa already published by Darul Iftaa Mahmudiyyah. It is not a fatwa service. For your own situation, please ask a Mufti. Report an issue

For corrections or mistakes, please email us at fatawasa786@gmail.com.

Source: Darul Iftaa Mahmudiyyah — https://askimam.org/public/question_detail/23597
Fatawa SA: https://fatawa.co.za/fatwa/askimam-23597

Related fatawa