In the Name of Allāh,

the Entirely Merciful, the Especially Merciful

Praise is due to Allāh, Lord of the worlds, may the blessings and peace be upon our master Muḥammad, the last of prophets, on his family, and all his companions.

Resolution No. 139 (5/15) Credit Cards

The Council of the International Islamic Fiqh Academy of the Organization of the Islamic Conference, holding its 15th session in Muscat, Sultanate of Oman, on 14–19 Muḥarram 1425h (6–11 March 2004),

Having examined the research papers submitted to the Academy concern- ing Credit Cards,

Having listened to the discussions on the subject,

Having recalled the previous Academy resolutions concerning this subject, including resolution no. 63 (1/7) containing the definition and forms of credit cards, and resolution no. 108 (2/12) on issuance and dealing in unsecured Credit Cards, the fees related to them, the discount (fee) charged to merchants and service providers who accept the cards, cash withdrawal, and using credit cards for purchasing gold, silver, and currencies,

Resolves

1. It is permissible to issue and deal in unsecured credit cards, provided that issuing such Cards or dealing in them does not involve charging interest for repayment defaults.
2. Issuance of secured credit cards should be subject to the rulings stated in resolution no. 108 (2/12) concerning issuance fees, discount charged to merchants and service providers, and cash withdrawal subject to the conditions indicated in the resolution.
3. It is permissible to use secured credit cards for purchasing gold, silver, and
4. It is not permissible for the issuing institutions to grant the cardhold- er any prohibited benefits, such as commercial insurance or access to Shariah-banned facilities. In contrast, it is permissible for them to grant him Shariah-acceptable benefits, like service priority and price
5. Islamic financial institutions that issue unsecured credit cards should ob- serve the Shariah conditions and criteria in this connection and avoid

any suspicion of interest or an excuse that may lead to it, such as “Debt- for-Debt Swaps.”

Indeed, Allāh is All-Knowing.