There is an Islamic finance institution that I have an account in. Besides the buying and selling big products like houses etc. They also do credit card business in a different way. They don’t have interest, but if someone buys a product with a payment plan with their card, they later divide the bill and charge the customer more than what they paid for originally in total. And with my account with this institution I accumulate money if they do well, and I might lose money if they do bad. Is my accumulation considered riba? Or is it completely halal?
wa `alaykum salam,
Interest-based transactions are haram. If you have signed the contract that does not include interest for credit cards then it is safe to have one.
Imam Senad Agic
Head Imam (IABNA)
The Islamic Association of Bosniaks in North America
American Islamic Center – Chicago