Could I Accept a Gift from a Bank?
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Is It Allowed to Accept Gift from Bank?

Questioner

Wael

Reply Date

Jan 28, 2019

Question

As-salamu `alaykum Sheikh. Firstly, I am using credit cards for my transactions and paying off on time without any interest. I am also planning to move towards using debit card instead of credit card as some people say it is desirable. Please, suggest. Secondly, while using credit cards I have accrued a good amount of reward points, which the credit card company allows me to en-cash. Is it halal to use this? Because, in my understanding banks profit from interest-based business and they are giving me a gift from the money earned through that. Please, clarify if it is halal/haram accepting it. Jazaka Allah khayr.

Mufti

Answer


Could I Accept a Gift from a Bank?

Wa `alaykum as-Salamu wa rahmatullahi wa barakatuh.

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

All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.


In this fatwa:

1- Points and other promotions are permissible.

2- It is none of your business what banks earn or do with other customers as long as your relation with your banker has no interest or other non-permissible elements.


In his response to your question, Prof. Dr. Monzer Kahf, Professor of Islamic Finance and Economics at Qatar Faculty of Islamic Studies, states:

If you pay the balance on time, always you are a free rider and it is permissible. Debit card is not better in this regard although I know there are people who claim that signing the contract of credit card is itself haram. I do not believe so, because the contract gives you the option to pay on time without interest.

Points and other promotions are permissible. Banks benefit a lot from interest on credit cards by people who do not pay on time but they also benefit from fees they collect from business that accept the cards. These fees are permissible.

Besides, it is none of your business what banks earn or do with other customers as long as your relation with your banker has no interest or other non-permissible elements. These points and privileges are permissible in my opinion.

Allah Almighty knows best.

Editor’s note: This fatwa is from Ask the Scholar’s archive and was originally published at an earlier date.




About Prof. Dr. Monzer Kahf

Dr. Monzer Kahf is a professor and consultant/trainer on Islamic banking, finance, Zakah, Awqaf, Islamic Inheritance, Islamic estate planning, Islamic family law, and other aspects of Islamic economics, finance, Islamic transactions (Mu'amalat). Dr. Monzer Kahf is currently Professor of Islamic Finance & Economics at the Faculty of Economics and Management, Istanbul Sabahattin Zaim University, Turkey

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