The Ruling on the Visa Card
Machine translationRead the Arabic original
The questioner:
Then the Shaykh said: Allah has informed us, is it permissible to buy what is called the Visa cards from the banks? It is a card by which the buyer spends a known amount for a known period, and if the period ends and the amount is not paid, there is an increase in the amount for the buyer every time he delays payment.
The Shaykh:
The Visa that we know is that a person presents an amount of money to the bank, he presents an amount of money to the bank, and then the bank gives him a card in the bank's name, acting as his guarantor for whatever he buys; the bank pays for it on his behalf. So he goes and buys from people and shows them this card, and those who sold to him go and collect their accounts from the bank. So the bank pays on his behalf.
And if he delays payment, the bank pays on his behalf, and then he repays the bank what it paid on his behalf within a specified time. If he does not pay within the specified time, the bank adds to it. This is riba (usury or interest) and is not permissible, because it is a loan with interest, whether he delays or not. If he delays, it is a conditional increase, and if he does not delay, the bank is taking the interest from the beginning, the money he presented to it is interest. So it is a loan that brought benefit, so it is not permissible. The Visa is not permissible under any consideration, because it is a loan that brought benefit. The bank paid for you; its payment on your behalf is like a loan. It lent you this thing, and it is taking the interest beforehand. You presented the money to it beforehand, and if you delayed, it added another increase to it. So this is not permissible. Yes.
The questioner:
If he said that he will not give you more than a specific amount.
The Shaykh:
Yes.
The questioner:
It does not give you a loan, he says: I will ask about you. But he did not take anything, the stronger position.
The Shaykh:
He calls it the value of the card. The card has no value; it is a piece of paper with no value. No, this is not permissible. It is not permissible for him to take anything from him, because if he is kind to him and lends to him and pays on his behalf, may Allah reward him, but he does not take anything. A loan does not take anything for it. The fact that he takes the amount and calls it the price of the card, this is correct. The card is worth nothing. Yes.
The questioner:
As for the guarantor, this is forbidden, of course.
The Shaykh:
This is consuming the wealth of people without right, consuming their labor without right. Yes.
Then the Shaykh said: Allah has informed us, is it permissible to buy what is called the Visa cards from the banks? It is a card by which the buyer spends a known amount for a known period, and if the period ends and the amount is not paid, there is an increase in the amount for the buyer every time he delays payment.
The Shaykh:
The Visa that we know is that a person presents an amount of money to the bank, he presents an amount of money to the bank, and then the bank gives him a card in the bank's name, acting as his guarantor for whatever he buys; the bank pays for it on his behalf. So he goes and buys from people and shows them this card, and those who sold to him go and collect their accounts from the bank. So the bank pays on his behalf.
And if he delays payment, the bank pays on his behalf, and then he repays the bank what it paid on his behalf within a specified time. If he does not pay within the specified time, the bank adds to it. This is riba (usury or interest) and is not permissible, because it is a loan with interest, whether he delays or not. If he delays, it is a conditional increase, and if he does not delay, the bank is taking the interest from the beginning, the money he presented to it is interest. So it is a loan that brought benefit, so it is not permissible. The Visa is not permissible under any consideration, because it is a loan that brought benefit. The bank paid for you; its payment on your behalf is like a loan. It lent you this thing, and it is taking the interest beforehand. You presented the money to it beforehand, and if you delayed, it added another increase to it. So this is not permissible. Yes.
The questioner:
If he said that he will not give you more than a specific amount.
The Shaykh:
Yes.
The questioner:
It does not give you a loan, he says: I will ask about you. But he did not take anything, the stronger position.
The Shaykh:
He calls it the value of the card. The card has no value; it is a piece of paper with no value. No, this is not permissible. It is not permissible for him to take anything from him, because if he is kind to him and lends to him and pays on his behalf, may Allah reward him, but he does not take anything. A loan does not take anything for it. The fact that he takes the amount and calls it the price of the card, this is correct. The card is worth nothing. Yes.
The questioner:
As for the guarantor, this is forbidden, of course.
The Shaykh:
This is consuming the wealth of people without right, consuming their labor without right. Yes.
Source
قناة «العلامة الدكتور صالح الفوزان»، 11 من 89|شرح العدة في شرح العمدة|البيوع|باب الربا|صالح الفوزان|الفقه|كبار العلماء — youtube.com (1:04:31)
The Arabic text is a machine transcription of the audio recording.