Q: I recently learned about the impermissibility of the 3% cash back on the credit card. Many stores offer points which can be changed to cash to purchase in store. Is this permissible? If yes, what is the difference between points in stores and cash back on a credit card.
A: The difference between the two is that the store is giving you the points as a gift for purchasing a product from them. On the other hand, the bank is awarding you with points/cash as a gift, but this is based on the loan that they are providing you with via the credit card. Hence, in this case, it is an addition to the exchange of a loan which falls under the definition of riba.
And Allah Ta'ala (الله تعالى) knows best.
وفي الخلاصة القرض بالشرط حرام والشرط لغو بأن يقرض على أن يكتب به إلى بلد كذا ليوفي دينه وفي الأشباه كل قرض جر نفعا حرام فكره للمرتهن سكنى المرهونة بإذن الراهن (الدر المختار 5/166)
الهبة عقد مشروع لقوله عليه الصلاة والسلام تهادوا تحابوا وعلى ذلك انعقد الإجماع وتصح بالإيجاب والقبول والقبض (الهداية 3/282)
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