The ruling on credit cards in Islamic law

Abstract

This study aims to study Islamic Sharia Rule on credit cards through identifying credit cards, types, benefits, costs, parties relationship, and relavant agreements, as well as legitimacy of the contracts between the parties on one hand and legitimacy of using the card through verifying the relationship between the issuer of the card and its holder as well as between the issuer and the retailer, thus coming to a conclusion about legitimacy of credit cards and other related issues.

The study reached many results, the most important of which are:

-        Legitimacy of issuing debit cards, as they do not violate Sharia.

-        Issuing credit cards indulge in usury.

-        Charging fees on issuing, renewing and replacement of cards is legitimate, because it is related to the number of times using the cards, but rather for the right given by issuer to the user.

-        Legitimacy of buying gold and silver by the debit card, as its transactions are considered instant payments. 

Study Recommendations

-        The government should have a main role with the private sector in issuing those cards, not letting this process to be administered solely by the private sector.

-        Islamic banks should establish their own organization instead of dealing with Visa or other organization. 

-        Reconsider cards' contracts and means of issuing and using them.