BENEFIT 418: Credit Cards

Questioner: Virtuous Sheikh, we would like to ask about some banks that issue cards like Visa cards. Perhaps the concept is clear, but can I clarify it further O Sheikh? Sheikh ’Uthaymeen: No (it's not clear), explain it. Questioner: I mean, instead of the consumer dealing with shops using cash, he presents this card and takes the desired goods. Then, the amount is settled by the bank with which the client is dealing. However, the contract between the client and the bank includes a condition: if the client delays payment beyond a certain period, interest is applied. Sheikh: Yes, the question is now understood. He takes a card from the bank, and when he purchases items, he presents the card to the seller, who then charges the bank. The bank pays on his behalf. If he repays the bank within the agreed-upon period, he only owes what he borrowed. But if he delays, an additional amount is imposed. I say: this is ḥarām, because committing to a usurious condition is itself forbidden—whether or not interest is paid. The man will say, “I am determined to pay before the deadline,” and we respond: yes, you are determined—but are you certain? The money might be lost, stolen, or you might die. You cannot be sure. Allāh says: “And never say of anything, ‘Indeed, I will do that tomorrow,’ except [when adding], ‘If Allāh wills.’” Furthermore, just accepting the condition that, should the term lapse, you agree to pay interest—this is an acceptance of riba, and agreeing to riba is prohibited(1). Therefore, we believe this is harām and that it is not permissible for a person to engage in this type of transaction. However, if he has a balance in the bank and the seller accepts to receive the payment through the bank, then he may proceed, and the matter is simple. In that case, all he needs is a checkbook to write a check to the seller. ___ (1) Narrated Jābir ibn Abdillāh (may Allāh be pleased with him): ((لَعَنَ رَسولُ اللهِ ﷺ آكِلَ الرِّبَا، وَمُؤْكِلَهُ، وَكَاتِبَهُ، وَشَاهِدَيْهِ، وَقالَ: هُمْ سَوَاءٌ)) "The Messenger of Allāh ﷺ cursed the one who consumes usury, the one who gives it, the one who writes it down, and the two who witness it, and he said: 'They are all the same.'" [Muslim 1598]