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Subject : Ruling on Paying by Credit Card

Fatwa Number : 3329

Date : 25-10-2017

Classified :

Fatwa Type : Search Fatawaa

Question :

What is the ruling of Sharia on using credit cards(Visa, Master…) by parents to pay for the tuition of their children where the company which issues the cards deducts an agreed upon percentage and deposits the rest in the school`s bank account within two or three days?

The Answer :

All perfect praise be to Allah, The Lord of The Worlds, and may His peace and blessings be upon our Prophet Mohammad and upon all his family and companions.

The contractual relationship between the company which issues the cards and the school is based on authorization and brokerage. The school administration authorizes the company to collect the tuition fees paid by parents through credit cards in return for an agreed upon percentage.

Accordingly, it is permissible to deal with the aforesaid cards and collect payments using them, provided that no additional fees are added to the percentage which is already agreed upon with the parents of the students.

The resolution of the International Islamic Fiqh Assembly issued in its twelfth session stated, "It is permissible for the bank which issues the credit cards to charge a commission from the seller in return for the purchases of the customer, provided that commodities prices paid for by credit card are the same as in cash." And Allah knows best.



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