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The question

What is the ruling on transferring money to another person using a credit card through currency exchange shops that charge a 3% fee for their services, and does this differ from the way other commercial shops operate, which charge a similar percentage on their goods?

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Source: FtawySummary from Ftawy's records · added here Sep 2, 20261 min readAlso available in العربية
The answer

There are two types of money transfers: internal, which is usually in the same currency, and external, which is usually in a different currency.

In transfers using the same currency, the transaction is a lease (ijara) or an agency (wakala) with a known fee, and it is permissible.

In transfers using a different currency, the transaction combines a lease (ijara) and currency exchange (sarf). In this case, the exchange must involve immediate possession in the contracting session, either physically (hand-to-hand) or constructively (such as direct transfers between accounts).

It is not permissible to use an uncovered credit card for transferring and purchasing currencies due to the failure to meet the condition of possession.

As for a covered credit card, it is permissible to use it, provided that the withdrawal or debit occurs directly in the account, as this stands in place of actual possession.

Summary from Ftawy's records · added here

Reviewed by El Fatwa's sharia committee.

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Where this answer came from
Source platform
Ftawy
Original fatwa ID
88771
Added here
. This is when the answer was added to El Fatwa, not the fatwa's date.
Text
Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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Read the full answer on Ftawy