Bank cards and revolving credit: where riba lies

Three situations

It all depends on what happens when the bill arrives.

• Debit or deferred card paid in full: a simple means of payment.
• A card with a carried balance and interest: the surplus is riba.
• A participatory card: no interest, with fees matching a defined service.

Acceptable fees

An annual fee or service charges clearly tied to a real service are generally accepted. What is problematic is a cost proportional to the overdraft amount and duration.

Good practice

If you use a card, settle the balance in full at each due date, schedule the direct debit and track your spending in a budget. Avoid turning the card into permanent credit. If your contract includes late interest, ask about the participatory alternative.

Frequently asked

Can I use a conventional card if I pay everything on the due date?

Many scholars allow it if you never pay interest and the contract has no penalty clause fixed in advance for the bank's benefit. Check your contract and seek advice.

Read next

• What is riba? A simple definition and the reasons for the prohibition
• Riba al-fadl and riba an-nasi'a: the difference explained with examples
• Murabaha explained: buying on credit without interest
• Ijara: financing an asset through leasing, with or without final purchase