The reason for the prohibition of credit cards and their fees
Machine translationRead the Arabic original
The questioner:
Peace be upon you. Upon you be peace. I say, Shaykh, we want to return to the topic of credit cards. As far as I know, there are prohibitions. The first prohibition in credit cards is that if you buy something for 450 dollars, it is calculated as 455 dollars, for example, in the purchase.
The Shaykh:
An increase, meaning.
The questioner:
An increase. The second point is in the case of delay. If you delay in repayment, they start calculating an increase for you.
The Shaykh:
Yes.
The questioner:
As far as I know, in Al-Rajhi cards, both of these points are negated. The first point is that they calculate for you exactly what you bought. If you bought for 450 dollars, they calculate 450 dollars and convert it to the riyal rate according to the exchange rate. The second point is that if they give you a period of 45 days, and the 45 days end and you have not paid the amounts you spent in the previous month, the card is automatically stopped. You can no longer transact or purchase with it until you pay. So, it means it exits the second prohibition in this way. As for the issue of fees, I expect that the fees they take for each year, meaning for this service, which means there are employees and there is... I do not know. What is your opinion on these three points so that the wisdom or the reason for the prohibition of credit cards becomes clear to us? May Allah reward you with good.
The Shaykh:
And what is Al-Rajhi doing when it issues this card? And what is its benefit from it if it is not benefiting?
The questioner:
Of course, this is a global system, Shaykh. I mean, this is a global system. Now, when you go abroad in America, you cannot rent a car or rent a hotel without it.
The Shaykh:
But what is its benefit?
The questioner:
I mean, keeping up with the times.
The Shaykh:
It gave it to you except for a benefit. Absolutely not, except that it benefits from you.
The questioner:
Certainly, of course, there is a benefit, but this is facilitating transactions, meaning.
The Shaykh:
As long as there is a benefit, this is a loan that brought benefit, because it paid for you and did not take an increase from you. Correct, it did not take an increase from you, but it has other benefits besides the increase. Does it get them from you? You deposit with it, you transact with it? It is confident in you. Also, at the entry, you do not call it fees, and I do not know the names. Names do not change realities. So, it is not correct. Yes.
Peace be upon you. Upon you be peace. I say, Shaykh, we want to return to the topic of credit cards. As far as I know, there are prohibitions. The first prohibition in credit cards is that if you buy something for 450 dollars, it is calculated as 455 dollars, for example, in the purchase.
The Shaykh:
An increase, meaning.
The questioner:
An increase. The second point is in the case of delay. If you delay in repayment, they start calculating an increase for you.
The Shaykh:
Yes.
The questioner:
As far as I know, in Al-Rajhi cards, both of these points are negated. The first point is that they calculate for you exactly what you bought. If you bought for 450 dollars, they calculate 450 dollars and convert it to the riyal rate according to the exchange rate. The second point is that if they give you a period of 45 days, and the 45 days end and you have not paid the amounts you spent in the previous month, the card is automatically stopped. You can no longer transact or purchase with it until you pay. So, it means it exits the second prohibition in this way. As for the issue of fees, I expect that the fees they take for each year, meaning for this service, which means there are employees and there is... I do not know. What is your opinion on these three points so that the wisdom or the reason for the prohibition of credit cards becomes clear to us? May Allah reward you with good.
The Shaykh:
And what is Al-Rajhi doing when it issues this card? And what is its benefit from it if it is not benefiting?
The questioner:
Of course, this is a global system, Shaykh. I mean, this is a global system. Now, when you go abroad in America, you cannot rent a car or rent a hotel without it.
The Shaykh:
But what is its benefit?
The questioner:
I mean, keeping up with the times.
The Shaykh:
It gave it to you except for a benefit. Absolutely not, except that it benefits from you.
The questioner:
Certainly, of course, there is a benefit, but this is facilitating transactions, meaning.
The Shaykh:
As long as there is a benefit, this is a loan that brought benefit, because it paid for you and did not take an increase from you. Correct, it did not take an increase from you, but it has other benefits besides the increase. Does it get them from you? You deposit with it, you transact with it? It is confident in you. Also, at the entry, you do not call it fees, and I do not know the names. Names do not change realities. So, it is not correct. Yes.
Source
قناة «العلامة الدكتور صالح الفوزان»، محاضرات في العقيدة والدعوة-38-قضايا فقهية - 02|صالح الفوزان|العام|كبار العلماء — youtube.com (26:32)
The Arabic text is a machine transcription of the audio recording.