Permissibility of using Cashback websites?

Everyday Islamic Finance Personal and Family Finance
1

Assalamu alaykum

Is it permissible to pass through cashback sites (such as Quidco or TopCashBack) when making a purchase. This works by passing you through a link, which is tracked. Once you make a purchase, the retailer informs the cashback site of this. After a certain number of days (sometimes months), the cashback site puts money into your account for making a purchase through its affiliate link.

I have always wondered whether this counts as a secondary contract within a contract, or whether it falls under the money now for money later rulings ? I would be grateful for any clarification on its permissibility in shariah.

JzkAllahkher

Nawaaz

2

Assalaamu Alaykum,

Cashback schemes are generally permissible and they can be structured in several ways. The cashback from Quidco and TopCashBack are permissible.

They do not fall under “money now for money later”, they are not loans and are not contracts within contracts. The contract you have with the merchant is separate to the agreement with the cashback site.

Regards

with Quidco is based on the Islamic Finance principles of Samsarah (commission) and Ju’alah (reward fees) and are therefore permissible.

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