Q. "The
scholars of Fiqh Accademy have approved the use of credit cards as reported
by Arab News, 15 May.As you know, banks charge a fixed annual fee for
credit cards use. Can I ask the bank to issue a credit card to me and
offset their annual fee against the interest which I do not take from
them?
(Muhammad Salim Desai, Alkhobar, Saudi Arabia)
A. The report of Arab news is not correct. In fact, the Islamic
Fiqh Academy, after a preliminary discussion on the issue of credit cards,
has deferred the matter to the next session without adopting a specipic
resolution in this respect.
However, in my view, the annual fee charged on a credit card cannot be
termed as interest or Riba. In fact, it is a service charge claimed by
the issuing bank from the card holder against the different services provided
by it. That is why the amo- unt paid by the bank to the marchants on behalf
of the card holder. this annual fee is charged even if the card holder
does not use the card throughout the year. The fee charged is a lump sum
irrespective of the actual amounts of purchases. Moreover, the annual
fee is so nominal that it has no relation to the prevalent rate of interest.
Particularly, the issuing bank or institution has to provide different
facilities to the card holder, and the annual fee is not more than a reasonable
charge for such services.
It is thus clear that the annual fee for the credit card is neither interest
nor any impermissible charge according to Shari'ah, and it is a valid
charge for the services rendered. Therefore, it will not be permissible
in Shari'ah to offset this annual fee against the interest accrued to
the card holder in the same bank. The reasons are twofold.
Firstly, it is not permissible in Shari'ah to open an interest bearing
account. Surplus money should always be deposited in a current account
where no interest is receivable.
Secondly, if somebody has deposited his money in an interest bearing account
erroneously he cannot use the amount of interest for his own benefit nor
can he use it to settle any rightful claim against him. Since the annual
fee of a credit card is a rightful claim against the card holder, he cannot
set it off by the amount of interest accrued on his account.
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