Is it permissible to use cash-back websites and to buy gift cards at a discount?

Question

Assalamu alaykum wwb beloved and respected ulama,

1) I had a question regarding the permissibility of cashback websites. It is possible to earn cashback through a number of cashback websites whereby any advertising revenue that might have been paid to someone for referring a customer is paid to the purchaser. Examples are: www.quidco.com and www.topcashback.co.uk. I was wondering if this is permissible?

2) I have an scheme at work whereby we can get cards for specific stores. When topping up these card we get a discount of a certain percent. Example, if I top up a card for £100 but there is an offer of a 10% discount. I would only pay £90 but my card would hold a value of £100 to use in store. Is this permissible?

Jazak'Allah khairan and wasalaam wwb

Mufti Sohail ibn Arif · Accepted Answer

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

1. Yes, it will be permissible to earn cash back from cashback websites (as long as one is purchasing permissible items) since the cash back site will be sharing a portion of their commission with you. [i]

2. I asked my respected teacher, Mufti Ebrahim Desai (may Allah preserve him) to review this question and he advised the following: The gift card is an advance payment for goods to be purchased. As such, the amount is a trust [amanah] in the possession of the store. As the card holder purchases items, the store redeems the money from the advance payment. If a person topped up his card for £100 and paid £90, it means £90 is in trust and the store has offered him a gift to purchase goods for £10. The discount offered to the gift-card holders is actually a gift and permissible.

Mufti Sohail ibn Arif,
Assistant Mufti, Darul Iftaa
Chicago, USA

Checked and Approved by,
Mufti Ebrahim Desai.

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