Bank benefits and Credit card reward programmes

Q: I recently read a fatwa that you issued with regards to eBucks. Jazakallah for the fatwa. I am struggling to understand one aspect and would like you please clarify it.

As you noted in the definition of interest, interest is “excess devoid of any compensation which either of the transacting parties is entitled to due to it being a pre-condition in that transaction.” So one of the conditions for interest is that it should be a pre-condition which doesn’t seem to be met in eBucks. FNB from time to time changes the amount of eBucks given, the reasons for giving eBucks etc. This shows it is not a pre-condition and it is not part of the contract as FNB from their side only modify it from time to time. If this was a pre-condition and part of the transaction it would require the consent of both transacting parties. Therefore, it seems that the definition of interest does not fit into eBucks. Please clarify.

Q: I read your article about eBucks being tantatmount to riba. My question is, if I have an Islamic Banking cheque acccount that earns a variable profit share and a credit card that I settle monthly in full on due date and hence pay no interest, is the ebucks earned still tantatmount to riba?

Q: In today’s times, we see many conventional banks offering different types of reward programmes in order to attract customers and promote their business. Among the reward programmes are the following; eBucks, uCount, Absa Rewards and GreenBacks. Similarly, certain conventional banks offer other incentives such as free access to certain airport lounges. Is it permissible for one to benefit from these reward programmes offered by these conventional banks or do the rewards offered by the bank enter under the purview of riba due to which they will be impermissible?

Q: I am going to retire in the near future. I dont want to deposit my money in any bank due to interest as it is haram. However, there are many Islamic Banks which also give returns on the deposits, though less.

My question is, 'Is keeping money in Islamic Banks and earning a profit halal or not'?

Q: I have a credit card. When I become cash strapped I resort to the credit card due to ease of access and I always try to pay the debt on the credit card within 55 days as before this, there is no interest charged. However, buying/relying on this facility makes me feel impoverished and fearful of consuming things that I can pay for later. What do you advise me to do? Use the credit card and ensure that I always pay for the debt within the non-interest period? It is permissable to use credit cards?

Q: Woolworths offer a credit card for R69 per month. The benefits are that a person gets free delivery on all orders online.

Secondly, every purchase one makes with the card accumulates 3% cash back. Would it be permissible to use this card, not earn interest nor pay interest, but use the free delivery extensively as well as the quarterly cash back.

Q: In Pakistan, different banks provide discount offers at different restaurants. E.g. Standard Chartered Bank provided 25% discount offer at Domino's Pizza in all outlets of Pakistan on 9th June, 2018. In some cases its up-to 50%, and sometime discount offered is for both debit and credit card. And few times the card category is restricted i.e. only Platinum and Gold Debit/Credit card holders can avail this offer. Is it halal or haram to avail the discount offer.

Q: I have a credit card.

1. I have received 245 as a bonus or gift or cash back from the bank. Is it halaal?

2. I need a loan from the bank but I don't want to pay interest from my money. Can I use the 245 which I received as a gift or cash back from my credit card to pay the interest? 

Q: Many financial institutions nowadays have rewards programs where you earn points for every swipe that you do with the credit card. Some you need to pay a yearly fee to be part of the club others you don’t pay anything. Just by swiping you earn points. Is it permissible to use these points? 

Q: Many people who receive benefits from the bank such as airport lounge access pay high bank charges or card fees e.g. Zaid’s bank charges are R300 000 for the year. After paying the bank so much in bank charges, why can he not take a R300 benefit from the bank by using the lounge facilities?