What is the ruling of Sharia on a zero balance credit card (Visa and Master Card)?
Answer:
All perfect praise be to Allah the Lord of the Worlds. May His peace and blessings be upon our Prophet Mohammad and upon all his family and companions.
A zero balance "Visa" and "Master Card", which include a usurious condition whereby the cardholder pays interest in case he was late in repayment of debt (Overdraft), aren`t permissible to benefit from, even if the holder is sure that he will adhere to the date of repayment. This is because, in principle, stipulating interest in a loan suffices for prohibiting it, and this is the case with the cards issued by most conventional banks, however, this isn`t the case with Islamic banks.
Resolution No. (108/12/2) of the International Islamic Fiqh Academy states: "It isn`t permissible to issue a zero balance credit card nor to deal with it if there is conditional interest, even if the applicant is determined to repay the debt during the grace period." And Allah the Almighty know best.