Credit Cards

প্রশ্ন · Question

My greetings and respect to you our dear Shaykh.
Assalamu Alaykom Wa Rahmatullah Wa Barakatuhu,
My question: I wanted to buy some items by installments, but I had
some suspicion on the matter, that in the case of delay in payment
and when accessing my postal account they did not find their
monthly share, they deduct a small amount...
For example, if the agreement is that every month, the normal
discount will be deducted for the agreed amount, but if they entered

for example on the 2nd or 3rd day of the month and did not find their
money, then a small amount (two or three dollars) will be deducted
automatically and can happen more than once a day...
Note that when I saw the terms and conditions of the installment
sales contract, it did not have this condition, but it is done
automatically in the case of delay in payment. So is it permissible for
me to complete that contract and buy my items with the existence of
such an automatic discount in case of late payment? May Allah ﷻ
reward you with all goodness.

উত্তর · Answer

Wa Alaykom Assalam Wa Rahmatullah Wa Barakatuhu,
My brother, I was confused about the question. You say that you
want to buy with installments, and then added that in the case of
delay in payment and when accessing my postal account they did not
find their monthly share, they deduct a small amount... This is not
clear. What I know and have been asked about is that some people
open a bank account, and then take a card from the bank to buy with
it from shops that are agreed upon. The merchant then takes the
amount of the goods sold from the customer's bank account. If the
account is in the bank, the price of the purchase will be paid to him
through the bank, but if the account does not hold this amount, then
the bank pays it to the merchant but takes a certain sum from the
account holder. If this is the case, the card given by the bank to the
account holder falls under the credit cards branch...
We have previously been asked a similar question, and have
answered it on 11/7/2006. The following is the text of our response:
(Credit cards are of different types:
- In one of its types, the card holder would have a certain amount of
money in the bank that issues such card (debit card). The card holder
would then make purchase by using the card such that he does not

go beyond the amount of money he has in his account in the issuer
bank, from participating trade shops that exist in several countries.
The card holder would buy from these shops without making (direct)
payments. He rather presents the card and sign bills by the value of
his purchased goods/services. He then transfers the shop to receive
the value of the purchased goods/services from his account in the
bank that issued the card. In other words, the bank would pay to the
shop the value of the purchased goods /services from the account of
the purchaser that holds the card.
This type of card (debit card) is allowed. Its reality is that it is (a bill of
exchange/promissory and representation (wakala)), where the
purchaser transfers the trader to the bank that issued the card, and
this bank, as an agent to the purchaser would pay the price of the
goods/services to the trader from the account of the purchaser in the
bank. That which the bank takes from the purchaser that holds the
card, as a payment of the price of the goods/services, comes under
the subject of the wage of agency (wakala).
However, what the holders of these cards do in terms of purchasing
gold and silver without paying (immediately) the price, but they
rather transfer the trader to the bank for receiving the price, this
action is haram. This is because the immediate reciprocal possession
of the gold/silver and its price is a condition for the validity of trading
in gold and silver, otherwise it would be usury (riba).
This is the case of this type if the bank that issues the cards was a
private establishment concluded through a valid contract by its
signatories, or it was possessed by the government. In such case this
type of cards is allowed.
- The second type of cards is issued by the bank to its customers
without them having an enough amount of money in their account
that covers their purchased goods/services. In such a case, the card
holder buys from the participating trade shops and signs papers by

which the shop would receive the price from the bank that issued
that card. The bank would record the amounts against the card
holder in addition to some extra amounts, which the bank receives
from the card holder in accordance of a plan of repayment through
certain installments.
The reality of these cards is that they are guaranty (Daman) from the
bank to the purchaser towards the trade shops. In other words, the
bank guarantees the purchaser, while the trade shops sell to the card
holder based on the guaranty of the bank. So, the bank that issues
the card is the one that pays the value of the purchased
goods/services. In other words, the card is a guaranty document from
the bank, where the bank is (the guarantor), the purchaser that holds
the card is (the guaranteed) and the trade shop is (the guaranteed
for), while the value of the purchased goods/services is (the right due
in the responsibility of the purchaser).
However, this guaranty does not fulfil its legal conditions. This is
because guaranty (Daman) in the sight of Islam is joining a
responsibility to another responsibility for the sake of settling a right
obliged on the second responsibility and without compensation (to
the first responsibility). Thus, the guarantor pays off the right due in
the responsibility of the guaranteed towards the guaranteed for
without compensation (on the side of the guaranteed to the
guarantor). However, the bank pays the value of the purchased
goods/services in return of a financial amount. Therefore, this type of
cards is not allowed legally from this angle. Moreover, the bank
records the value of the purchased goods/services as debt upon the
purchaser, and it receives this value with extra amount, i.e. as usury
(riba). Thus, it is not allowed from this angle as well.) Ends.
If this is what you mean in your question, then the answer above is
sufficient, but if it is not what’s intended, then re -mention your

question with sufficient clarification in order to provide you with the
answer, if Allah wills.
Your brother,
Abu Yasin
10th Rajab 1439 AH
Corresponding 28/03/2018 CE