Non-interest charges of credit cards : the charge for cash withdrawal from machines

Fatawa Question

In European countries, you can get the so-called Visa or Master card. It can be used for paying in shops, but if it's used to withdraw money from cash points, there would be a charge of 1.5 % (i.e. when you receive a statement to repay what you've spent there will be some extra amount of 1.5 % should be added). Is it considered as a Riba (interest) since they don't call it interest in the statement, but just a charge for using withdrawing facility ?

Fatwa

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Publication Date

2002-02-02

Main Subjects

Economics & Business Administration
Financial and Accounting Sciences
Religion
Islamic Studies

Topics

• Banks
• Islamic jurisprudence
• Islamic economics
• Administrative fees
• Usury
• Credit cards
• Banking services
• Commissions

No. of Pages

1

Data Type

Fatawa

Language

English

Record ID

BIM-723897

• APA
• MLA
• AMA