Today everybody wants to save money, and cashback offers can be a great way to do this.
Cashback provides customers with some money back after they make purchases, either as an immediate refund or a later credit to their bank account.
Also, it is in different forms, such as money, vouchers, or points.
But the query here arises, is cashback halal? Is it permissible in Islam to accept money from cashback offers? If you’re searching for answers, this article is for you.
Is Cashback Halal?
Cashback is actually a form of refund, and according to Islamic law, it is completely halal.
The basic concept of cashback is that merchants offer you a refund or discount when you shop with them. This money can either be in the form of an immediate refund or a later credit to your bank account.
The money received from cashback offers is not considered riba (interest on loans) or gharar (unlawful gambling). Rather, it is seen as a reward to customers for shopping at certain retailers.
However, it is also important to note that from where you get your cashback.
If the source of cashback is a company or website which involves unlawful activities such as gambling, then it is not permissible to accept cashback from such a source. Not only cashback but also purchasing any product or service from such a source is prohibited in Islam.
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Is Credit Card Cashback Halal?
If you make a purchase using a credit card, you may receive cashback from the issuer in the form of a discount.
Although, according to Islamic law, using a credit card itself is haram, the cashback received from such a transaction is also not halal.
When getting a credit card, you agree to the terms and conditions of the card, including paying interest if you don’t pay your bill on time.
This agreement makes it haram to use a credit card, and any reward earned from using such a card is also not permissible in Islam.
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Is Cashback Halal On Debit Card?
Yes, cashback on debit cards is permissible in Islam.
When using a debit card, you do not agree to any terms and conditions like with a credit card, so there is no chance of you being subject to interest or any other unlawful activities.
Cashback on debit cards usually comes in the form of a rewards program, where you earn points for purchases made with the card.
The points can then be used to get discounts or cashback on future purchases.
Although, it is important to note that you must only use debit cards with trustworthy companies and avoid using them with those who are involved in gambling or any other unlawful activities.
For example, if you purchase clothes, books, or any other products from trustworthy companies, you can get cashback on your debit card. This is completely permissible in Islam.
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Q. Is it allowed to have a credit card in Islam?
A. No, having a credit card is not allowed in Islam because it involves interest payments and other unlawful activities.
Q. Where does cashback come from?
A. Cashback usually comes from the retailer or credit card issuer (if you use a credit card) as a reward for shopping with them.
Q. Is cashback haram?
A. The process of getting cashback from a retailer is halal as long as the source of the money is not linked with any unlawful activities. However, cashback received through a credit card is not permissible in Islam.
Cashback offers can be a great way to save money and get rewards on your purchases.
However, it is important to make sure that the source of cashback is not involved with any unlawful activities.
Cashback received on debit cards is permissible in Islam, while cashback from credit cards is not allowed.
Be sure to check the terms and conditions of any cashback offers before you accept them.
I hope your query is cashback halal is answered. May Allah grant you success. Ameen.