The Ruling on the Use of Credit Cards

The questioner : In the name of Allah, the Most Merciful, the Bestower of Mercy. May prayers and peace be upon the noblest of the prophets and messengers, our master and our Prophet Muhammad, and upon his family and all his Companions. As for what follows:
His EminenceThe Shaykh- May Allah preserve you - , he saysThe questioner: What is the ruling on using credit cards like ... , which are issued by financial institutions in exchange for a fixed annual fee of approximately 120 dollars per year? This card allows the holder to purchase his needs without paying the amount immediately, and then the invoices are sent to him as they are, according to the actual value of the purchase. What is the ruling on dealing with such cards? I ask for clarification, and may Allah reward you with good?

The Shaykh: Praise is to Allah; we praise Him, seek His help, and seek His forgiveness. We seek refuge in Allah from the evil of our own selves and from our bad deeds. Whomsoever Allah guides, none can misguide, and whomsoever He leaves to misguide, none can guide. And I bear witness that there is no deity but Allah alone, with no partner, and I bear witness that Muhammad is His slave and His Messenger. , , . As for what follows:
Indeed, the best of speech is the speech of Allah, and the best of guidance is the guidance of Muhammad (peace and blessings be upon him and his family), and the worst of matters are their innovations, and every innovation is a religious innovation, and every religious innovation is misguidance, and every misguidance is in the Fire. And after that:
Indeed, Allah (Blessed and Exalted is He) says in His noble Book: , and the Prophet (peace and blessings be upon him) said: . Many of the rulings of the Shari'ah are linked and tied to this principle that our Lord (Mighty and Majestic) established in the previous verse, and the Messenger of Allah (peace and blessings be upon him) detailed some of it in the hadith I mentioned just now. There are other hadiths that revolve around this explanation of this noble verse, such as the hadith in which he (peace and blessings be upon him) cursed ten people involved with intoxicants, and he (peace and blessings be upon him) counted them, mentioning at the beginning of the list: the one who drinks it, the one who serves it, the one who fetches it, the one who carries it, the one to whom it is carried, and others, all of whom agree to cooperate in evil. When you know and remember this reality from that noble verse and the Prophetic hadiths, you will know that the rule is that it is not permissible to cooperate in evil, but rather in righteousness and piety.
Since the matter is thus, the card you mentioned just now has two states: either it is a form of cooperation in good, facilitating people's affairs, and meeting their needs without riba (usury or interest), which they call today "interest"; that is, without material benefit, which is riba itself. Either these cards are not accompanied by any riba; in that case, we see nothing wrong with them, and they remain on the original ruling, and the original ruling in transactions is permissibility. As the Shaykh al-Islam Ibn Taymiyyah (may Allah have mercy on him) used to say two very important words: "The original ruling in acts of worship is prohibition, and the original ruling in customary matters is permissibility." The original ruling in acts of worship is prohibition unless there is evidence; so if one wants to worship Allah, he must have evidence. And the opposite is the case; the original ruling in customary matters is permissibility unless there is evidence.
This dealing with this card is not hidden from anyone that it is not from acts of worship, but rather from transactions. Therefore, if there is nothing in the Shari'ah that prevents dealing with it, it is permissible. Otherwise, we look at what may be in it that contradicts the Shari'ah. It was provided to me to discuss with some of the brothers who were afflicted or whose travels and trades required them to deal with this card, and to purchase with it benefits reaching thousands, if not millions of dollars. I understood from him that the prices sold with this card are not the prices paid by every buyer, but rather a specific percentage is added to them, which is what the bank, the source of this card, obtains in exchange for facilitating such transactions. If this benefit is not like the benefits that riba-based banks take in exchange for a loan, but rather these benefits or additions to the true price of the card are a procedure or a fee for conducting transactions, then it is permissible. And if it is by the way of riba taken in exchange for a loan; then at that time it is said: "Every loan that brings a conditional benefit in advance is riba." And thus, I personally cannot decide in the reality of this increase, if what I heard is correct; is it riba or is it a fee for this transaction? If it is the former, it is clearly forbidden; because it is exchanged under the name of riba. And if it is in exchange for facilitating transactions and conducting transactions that have a time and a value; then it is permissible, and Allah knows best.