Bank Charges And Service Fees
QUESTION:
I hold a credit card which I rarely use. I do understand that while it is permissible to use a credit card as long as repayments are made within the fixed time, what about the bank fees which are charged to the card even if it is not used? Is this categorized as Riba?
ANSWER:
Severe warnings have been mentioned in the Holy Quraan and the Ahaadith of Nabi Sallallahu Alaihi Wasallam regarding those involved in interest and usury.
Allah Ta’ala mentions in the Quraan Shareef:
الذين يأكلون الربا لا يقومون إلا كما يقوم الذي يتخبطه الشيطان من المس ذلك بأنهم قالوا إنما البيع مثل الربا وأحل الله البيع وحرم الربا.
“Those who take Riba (usury or interest) will not stand; but will stand as one whom the demon has driven crazy by his touch. That is because they have said, ‘Sale is but like Riba,’ while Allah has permitted sale, and prohibited Riba.” (Verse: 2:275)
يا أيها الذين آمنوا اتقوا الله وذروا ما بقي من الربا إن كنتم مؤمنين. فإن لم تفعلوا فأذنوا بحرب من الله ورسوله وإن تبتم فلكم رءوس أموالكم لا تظلمون ولا تظلمون.
“O you who believe, fear Allah and give up what still remains of Riba, if you are believers. But if you do not (give it up), then listen to the declaration of war from Allah and His Messenger. However, If you repent, yours is your principal. Neither wrong, nor be wronged.” (Verse: 2:278,279)
Nabi (Sallahu ‘Alaihi Wasallam) has not only forbidden Muslims from giving and taking interest, but also forbidden them from writing down the transaction of interest, and witnessing it.
عن جابر قال لعن رسول الله صلى الله عليه وسلم آكل الربا وموكله وكاتبه وشاهديه وقال هم سواء. (رواه مسلم)
Hadhrat Jabir Radiallahu Anhu narrates that Nabi Sallahu Alaihi Wasallam cursed those who are involved in usury; whether it is the person who is giving usury, receiving it, writing the transaction or witnessing it.
It is understood from the above-mentioned Hadith that it is not permissible to deal in any interest-bearing transactions, irrespective of whether one receives the interest or not. The mere transaction in which there is an involvement of interest is prohibited.
Yes, it is permissible to use a credit card facility. However, a credit card holder should ensure that deposits are made on time to avoid paying interest. Furthermore, the fees that the bank deducts is for their services, etc. which is permissible.
ALLAH TA’ALA ALONE IN HIS INFINITE KNOWLEDGE KNOWS BEST!
ANSWERED BY:
Mufti Ahmed Saeed
Date: 05 Rabi-ul-Aakhir 1448 / 17 Septmeber 2026
CHECKED AND APPROVED BY:
Mufti Yacoob Vally Saheb