The Difference Between a Credit Card and a Deposit Card

The presenter:
Please. Look, I hope, brothers, that the questions relate to the topic of, meaning, the scholarship program and the rulings associated with it. We genuinely have a desire to answer, if Allah wills, all the questions.

The Shaykh:
After that, it will be lighter for us.

The presenter:
Yes, meaning, focus the questions. The questions are, of course, undoubtedly useful, but we also want them to be useful for you, if Allah wills, in the sense that you clarify and inquire, if Allah wills. Yes. So, please, focus the questions a bit. May Allah reward you with good. Also, some of the questions, brothers, are repetitive and have already been answered previously, so I ask you, my brothers.

The Shaykh:
Yes.

The questioner:
Shaykh, returning to the issue of credit cards, Shaykh, regarding Al-Rajhi, did they benefit or not? First, the person who gets the card originally has an open account with Al-Rajhi. This is first. Al-Rajhi, in fact, was compelled, out of necessity, to issue such cards because all the other banks provided this service. So he was compelled because all, or we can say, the other customers of the other banks get this benefit, with the riba (usury or interest) that comes with it. And we are now in an era, as they say, of e-commerce, and no transactions are conducted, of course, outside of the so-called Third World countries, except with these cards. What has happened to other nations will happen here, currently or after some time. And indeed, now there are many things a person can obtain, but he cannot obtain them except through these. He cannot get them except through these credit cards. This is first. The second thing, Shaykh, is that.

The Shaykh:
At this point. This matter. We are only looking into the credit card. The credit card: you have no balance with the one who issued the card. Rather, he lends you, you buy, and he pays for you. You have no balance with him. This is the meaning of credit. But if you have a balance with him, that is not credit. That is a deposit. You deposit money with him, and he pays for you from your money. From your balance.
So if your balance runs out, he stops paying. That is fine if you have a balance and he pays for you from your balance. That is fine because he has become your agent, paying on your behalf from your balance, and you authorized him to pay for you from your balance. There is nothing wrong with that. But the credit card is different. The credit card: you have no balance with him.
He trusts you and lends you, pays for you, and then recovers it from you later with interest, either immediately or if you delay. This is the credit card.

The questioner:
Our Shaykh.

The Shaykh:
We distinguish between the two types of cards. Yes.

The questioner:
Our Shaykh, we invalidate. A person’s situation may come where he has a pressing need for money and what he has runs out, and then he needs to borrow from the bank. But originally, originally, it is a service provided to the customer, and it is not actually required that he have a balance in the bank. But this.

The Shaykh:
If the bank wants to lend to you without interest.

The questioner:
It is only to keep up with others and to provide for its customers what the other banks provide, so that it keeps up with the times, because now this has become a life necessity. And if we, Shaykh, if we.

The Shaykh:
In the credit card, it is not like the deposit card. The deposit card has no problem if he pays for you from your balance.

The questioner:
No, not from the balance.

The Shaykh:
Your balance is finished, he stops paying. This has no problem. This is an agent for you, paying for you from your balance that he has. But credit: you have no balance with him. He pays for you from his money and then recovers it from you with interest, either with the payment or if you delayed. This is the talk. Or that he pays for you without increase, neither with payment nor if you delayed, but he has other benefits from you. He has other benefits from you that he hopes for. This Yes.