What is the ruling on the Samba Al-Khair Al-Fursan MasterCard when paying amounts in advance exceeding the credit limit and using it for purchases to benefit from accumulated miles, along with paying an annual fee?
It is impermissible to use a Visa card if it entails a condition of interest or a penalty for late payment, or if it charges excessive issuance fees beyond the "actual cost," or if it charges a percentage on withdrawal transactions that exceeds the "actual fee" for an uncovered Visa card, or if it is used to purchase gold, silver, or currencies with an uncovered card. Accordingly, dealing with banks that impose late penalties or profit margins in case the customer does not pay the full amount is forbidden usury (riba), and it is impermissible to sign a Visa card contract that includes these conditions. Furthermore, cards issued by usurious banks are completely and entirely forbidden, even if they are labeled as "Islamic."
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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