Assala-mu-Alaikum Mufti, we have a retail outlet and have /- two transactions a month whereby the customer requests that his purchase be placed on a budget facility. Sometimes 3/6 or 12 months. Are we assisting in a interest transaction? We receive the money from the relevant finacial institution the next morning and the interest is charged to the customer purchasing from us.Jazakallah Khair
The use of credit cards is permissible provided the total amount due is paid by the due date as any delay would attract interest.
This ruling applies only to the ?straight facility? and not the ?budget facility?. In the case of the ?budget facility? where payment is spread over a pre-determined period, this facility inevitably attracts interest. Since you, as the shopkeeper, is acting as a liaison between the customer and the interest related transaction, it is not permissible for you to accept such transactions. Assistance in prohibition is also prohibited.
and Allah Ta’ala Knows Best
Mufti Muhammad Kadwa
FATWA DEPT.
checked & approved by: mUFTI EBRAHIM DESAI (FATWA DEPT.)