What to do with cashback earned on a riba-based credit card

واجب من حصل على مكافأة استرداد نقدي نظير استخدامه بطاقة ائتمانية ربوية

A question from an engineer living in a Western country who took out an American Express credit card to raise his credit score before learning that signing its contract is impermissible because of the riba-based penalties on late payment; he always paid on time, stopped using the card when he learned the ruling, and the company then paid him a cashback reward for his earlier use. The fatwa centre of IslamWeb answered that he may not benefit from this cashback, because the issuing bank grants it for use of the forbidden card, so it is a conditional reward tied to the void contractual relationship and not an unconditional gift, and it takes on the same prohibition; forbidden benefits may not be exchanged for consideration. It quoted al-Qarafi in al-Dhakhira that forbidden benefits are not matched by consideration, and Ibn Aqil in Kitab al-Funun that Ahmad's school forbids the price of every forbidden thing, arguing from the hadith that when God forbids a thing He forbids its price. It required him to dispose of the money by spending it on the interests of Muslims and giving it to the poor and needy, and said that keeping and using the card is not permitted unless he needs it and finds no alternative free of sharia objections.

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Summary

A question about a cashback reward paid by a credit-card company to the user of a riba-based card after he had stopped using it, in which the fatwa centre of IslamWeb answered that he may not benefit from it, because it is a reward conditional on use of the forbidden card and so takes on its ruling; he must dispose of it by spending it on the interests of Muslims and on the poor, and keeping the card is not permitted except for need where no alternative exists. 1

The question

The questioner said he is an engineer living in a Western country with a credit-score system that represents a person's creditworthiness and helps in renting or buying a home or buying a car, and that a deferred-payment credit card is one way of raising the score; he applied for an American Express card before learning that merely signing its contract is impermissible, the card being linked to his bank account so that the balance is drawn automatically each month and riba-based penalties are imposed when funds are insufficient. 1 He said he was careful to pay on time and was never a day late, stopped using the card in the middle of the year when he learned the ruling on the contract, and the company then paid him a cashback reward for his earlier use, although the card carries an annual fee; he asked about the ruling on this reward, whether he must cancel the contract he had kept as a precaution and to preserve his credit score, and whether using the card is forbidden to him. 1

The answer

The centre thanked the questioner for his care over what is lawful, then ruled that he may not benefit from the cashback he received for using a forbidden credit card, because the issuing bank grants this refund on account of the card's use; it is not an unconditional gift but a reward conditional on the card being used, tied to the void contractual relationship and earned through use of the forbidden card, so it takes on the same prohibition, and forbidden benefits may not be exchanged for consideration. 1 It quoted al-Qarafi in al-Dhakhira that forbidden benefits are not matched by consideration, and Ibn Aqil in Kitab al-Funun that Ahmad's school forbids the price of every forbidden thing, arguing from the hadith cursing the Jews who, when fat was forbidden to them, sold it and consumed its price, and stating that when God forbids a thing He forbids its price. 1

The centre required him to dispose of this cashback by spending it on the interests of Muslims and giving it to the poor and needy, referring to its fatwas 169107, 156857 and 133877. 1 As for keeping and using the card, it said this is not permitted unless the questioner needs it and finds no alternative free of sharia objections, referring to its fatwa 456946. 1

About this record

The fatwa centre of IslamWeb published this fatwa on islamweb.net as no. 539309, dated 15 Jumada al-Ula 1448, 26 October 2026. 1 The museum records this text as a historical document attributed to the body or scholar that issued it; it issues no ruling of its own.

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Riba in the rulings: the forbidden excess in exchange and in delay, its kinds, its causes and its rulings· Mal (property) in fiqh: definitions, kinds, usufruct and debt as property· The lawful, the unlawful and the doubtful

People and things also explored

Working in booking hotel rooms for attendees of various conferences· Sale of the prohibited· What the Law was silent about· Intoxicants (muskirat)· Tayyib (purity and lawfulness)· Wara' (scrupulosity)· Arba'un 6 — the lawful is clear and the unlawful is clear· Arba'un 22 — if I pray the prescribed prayers

Sources

  1. IslamWeb fatwa centre (islamweb.net) , fatwa 539309

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islam.museum contributors. “What to do with cashback earned on a riba-based credit card”. islam.museum, https://islam.museum/en/work/fatwa-islamweb-cashback-from-a-riba-based-credit-card/. CC BY-SA 4.0. Last updated 2026-11-02.

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Working in booking hotel rooms for attendees of various conferences

A question from an executive employee whose job is to research conferences held in various countries and find cheaper hotel rates for attendees, passing the information up to his superior; some conferences may concern forbidden matters such as alcohol-industry conferences or fashion shows, and some hotels have casinos or bars, though he books only rooms. The fatwa centre of IslamWeb answered that researching hotel prices and booking rooms for conference attendees is permissible work, being intermediation and guidance to a permissible benefit, the renting of lodgings, so the salary earned is lawful; but where it is known or strongly suspected that a conference's subject is forbidden, booking hotels for its attendees is facilitation of and assistance in the forbidden, prohibited in the verse of al-Ma'ida; for conferences whose subject is permissible or unknown there is no blame in booking for their attendees and no duty to investigate, nor is this barred by the presence of wrongdoing in those hotels, since the contract concerns the benefit of lodging. It ruled that he may continue in the work while avoiding assistance to forbidden conferences, and if his manager orders him to book for a conference he knows or strongly suspects to be forbidden he should decline, since no created being is obeyed in disobedience to the Creator; his salary is not judged forbidden so long as most of his work is permissible, and as a precaution he should give in charity a share of his salary matching the time he spent booking for forbidden conferences in the past, to clear his conscience.