U-Count Rewards

The Fatwa of our Darul Ifta in regards to points or rewards is as follows; if a client was already holding an existing account with the bank and was thereafter offered the U-Count Rewards, then it will be permissible for him to take benefit from the U-Count Rewards programme (as for which of these points will be permissible for him to use and which points impermissible, this must be understood in the context of what we will later mention at the end of this reply under the heading “IMPORTANT NOTE”).

However, it will not be permissible for him to open an account solely with the intention of subscribing to the U-Count Rewards programme and accrue points, as in our opinion he will be benefitting from the loan which he advanced to the bank, in the form opening a new account (in which funds were deposited).

This in simple terms will mean; if one was not a Standard bank account holder then he should not open an account with the intention of subscribing to the U-Counts Programme. It is only when he opens a new account with this facility at the bank that he would qualify for the rewards programme. This brings us to the conclusion that the loan advanced to the bank (by opening the new account) would become the means of taking benefit from the U-Count Rewards programme, otherwise one does not enjoy the freedom of doing so. The Hadith states that every loan that draws benefit is considered as Riba, hence it will be impermissible to open an account with the sole intention of joining the U-Count programme. We hope this clarifies the issue.

Now, a person requiring an account (to protect his funds) may open and activate the account (without the motive of benefitting from the U-Count Rewards), and if the bank thereafter offers the U-count rewards programme to him, then he may subscribe to it, since the new account in this instance has not been opened with the intention of accruing points but rather as a necessity and need, and the points offered to the existing client will be considered as a gift (Here too, as for which of these points will be permissible for him to use as a gift and which points impermissible, this must be understood in the context of what we will later mention at the end of this reply under the heading “IMPORTANT NOTE”).

The ‘Shariah advisory committee’ states that the points are for swiping one’s card (whether debit or credit). The card holder is credited with a certain amount of points according to the usage of the card and not according to the amount used. This means (in our understanding) that each time the card is swiped a certain amount of points are credited to the cardholder irrespective of the amount of purchase, which is recorded in the response as follows; “…..rewards are earned based on the usage of the card and not the amount used.”

IMPORTANT NOTE:
Now, these benefits/points can be awarded to the client either directly from the bank or from participating stores. If the former scenario applies, then because the income of the bank is primarily from interest based transactions, usage of such points will not be permissible. Yes, the points accrued from participating stores that have partnered with Standard bank or U-count will be permissible for use as a major portion of their income is generally from Halaal sources.