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Q & A --> Trade and Transactions --> The Ruling for Discount Cards

Question : A question was asked regarding [the validity of using] discount cards.

Fatwa in Brief: This is not permitted. Such cards are produced by those who [are content to] devour the property of others, contribute to consumerism, and create enmity between shop owners.

The Permanent Committee, 14/13-16

Response:

If the person who buys this type of card knows that the money s/he saves through the discount card is likely to exceed the money s/he spent on the card, then buying such cards is permitted. The resulting transaction is to be considered as a form of sale or discount.

Commentary:

First, providing that these cards are given out freely, it is permitted to produce and accept. This is because they may be seen as a form of donation or gift (hiba).

Second, it is also permitted to produce and use discount cards, in return for which you pay an annual subscription. The card owner should also know that the amount saved through the discounts on offer exceeds the price of the card. In turn, the seller benefits from promoting (tarwij) his/her products at a reasonable price. There exists no legal prohibition on this matter. Rather, it must be considered a form of sale or discount. It is unconnected with “devouring the property of others”.

Third: it is not permitted to produce and accept these cards if the [potential] buyer is not sure that s/he will benefit from them or not. Indeed, in this case, these cards may contribute to the devouring of property. If the buyer pays an amount of money and does not know what s/he will get in return, then the damage (gharam) [to one’s pocket and religion] is certain (mutahaqiq), while the gain (ghanam) remains merely hypothetical. And, in the sound hadith included in the collection of Muslim, the Prophet (upon him be peace) prohibited any sale which may lead to the devouring of other people’s property.

And God knows best.

Dr. Sami Ibn Ibrahim al-Suwaylam said:

Regarding the discount card, modern scholars disagree on its rulings. Some argue that it is prohibited outright on the grounds that it is a type of gambling (maysir) and, therefore, results in damage (gharar) [to one’s pocket and religion]. This is the case when the buyer pays the price of the card without knowing whether s/he will benefit from it. Here, he hesitates between winning and losing [in an action similar to gambling].

Others argue that these cards are permitted. They do so on the grounds that what one pays for is the work of the mediator in convincing the shop to lower its prices [and sell its products at a discount]. In this case, the price of the card is merely the fee one pays to the mediator [i.e. the card’s manufacture]. (Check: Khalid al-Muslih, al-Hawafiz al-Tugariyya, pp. 179-192).

[Before buying these cards] it is important to obtain detailed information [on their uses]. God knows best, but there is no legal objection to someone who says: “get me a discount from a shop, and, in return, I’ll give you this [a card]”. Imam Ahmad [Ibn Hanbal], for instance, argues that it is permitted that a person says to another [who acts as his mediator]: “borrow one hundred for me from such and such a place, and, in return, I will give you ten [and this will suffice]”.[1]

And God knows best.[2]

Dr. Anas Abu Shadi  


[1] Al-Mughni, Dar Hajr, 6/441.

[2] Sami ibn Ibrahim al-Suwaylam, a researcher in Islamic finance, Fatawa Istisharat al-Islam al-Yawm, p. 8, no. 464, 14th /3/ 1425 AH.