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Fatwa CenterA bank paying a bonus to encourage its customers to buy with its credit card
Question
Assalamu Alaikum, I am owing a Credit Card for several years. Up to now I am controlling myself to avoid any interest payment. Alhamdulillah. Now the bank is paying a bonus of 1 rupee for every purchase of 100 rupees to encourage the customers to purchase more. Is this a RIBA ?
Answer
All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad is His slave and Messenger. We ask Allaah to exalt his mention as well as that of his family and all his companions.
First of all, it should be mentioned that it is not permissible to deal with credit cards which include Ribaa (interest and/or usury) in return for a loan or delay in repayment, even if the one who deals with such cards is keen not to be involved in Ribaa. For more benefit, please refer to Fataawa 90131 and 84519.
As regards the ruling on what the bank pays to its customers in order to encourage them to buy with the credit card, then this depends on the nature of such card. If this card involves Ribaa for the loan, as usual, then this is forbidden money and it is forbidden to accept it, because it is given to people to encourage them to commit what is forbidden.
However, if the bank does not impose Ribaa on the loan, but rather takes some money from the buyers in return for the service rendered by the card, or that it takes from them a commission on the bought goods, which are obtained only by using these cards, then this is permissible.
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