Credit Card Cash-Backs
Question:
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:
If one uses the credit card for purchasing items, 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 Mufti 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
[Mufti] Muhammad ibn Adam
Darul Iftaa
Leicester , UK