—on the basis of a contract between them—that enables him to purchase goods or services from any party that accepts the document (the merchant) without paying the price immediately, because it embodies the issuer’s commitment to settle the amount due. The issuer pays from its own account and later recovers the sum from the card-holder at regular intervals. Some cards impose usurious interest on the total unpaid balance after a fixed period from the billing date, while others charge no interest at all.

It therefore resolves as follows:

First: It is impermissible to issue or use an uncovered credit card if its operation is conditioned on the payment of usurious interest, even when the applicant intends to settle the balance within the interest-free grace period.

Second: It is permissible to issue an uncovered credit card provided it contains no stipulation of interest in excess of the principal debt.

Consequently:
(a) The issuer may charge the client a fixed fee at the time of issuance or renewal as genuine remuneration proportionate to the services rendered.
(b) The issuing bank may take a commission from the merchant on the customer’s purchases, on condition that the merchant’s sale price when paid by card is identical to his cash price.

Third: A cash advance taken by the card-holder constitutes a loan from the issuer and is unobjectionable in Sharia so long as it entails no usurious increment. Lump-sum fees that are unrelated to the amount or term of the loan and are taken for providing this service do not fall under such an increment. Any charge beyond the actual cost of the service is forbidden, for it is a form of riba prohibited by Sharia, as affirmed by the Academy in its Resolutions No. (13/10/2) and (13/1/3).

Fourth: It is not permissible to purchase gold, silver, or currencies with an uncovered credit card.

And Allah knows best.