Resolution No.(57): "Ruling on Halalcom Card Issued by Middle Solutions Company (MSC)"
Date:12/10/1422 AH, corresponding to 26/12/2001.
The Board has received the following question:
What is the ruling of Islamic Sharia on Halalcom card, which "Middle Solutions Company" intends to put into circulation. For further clarification, I will refer to the following:
The relationship between the company and the client:
The company issues Halalcom card, which enables the client to purchase any product in the company`s possession, or any of its branches in Jordan. After the issuance of Halalcom card to the client, he/she is given a certain number through which each independent act of purchase is dealt with, and each transaction constitutes an independent contract in its own right. The client pays (3%) from the overall value of the invoice, and repays the rest as equal monthly installments, up to (26) as a maximum. Moreover, the client can`t withdraw any cash amounts through this card, it doesn`t authorize him/her to purchase products from other companies, he/she doesn`t pay any interests for the installments, or any other sums added to the overall value of the product`s price, which has the same value whether it was paid for in cash or by installments.
The relationship between Jordan Ahli Bank and the client of the {MSC}.
There is no relationship between the Bank and the {MSC} clients.
As regards the relationship between the {MSC} and the Jordan Ahli Bank:
The Bank issues the above card on the following grounds:
A- Owing to the fact that the Jordan Ahli Bank is the only bank in the H.K.J which is fully qualified to issue and deal with credit cards in line with the instructions of the Jordan Central Bank, it has agreed with the {MSC} to issue cards holding the name of the latter, with the logo "Halalcom" inscribed under the its name. The Bank`s task is to issue these cards. In return, it charges two and a half JDs for each card it issues to the company`s clients; still, the latter aren`t charged with any amount.
B- Consequently, the Bank doesn`t charge the client or the company with any interest or amounts in return for the issuance of the cards.
C- The Bank is obliged to preserve the credibility of the cards it issues to the company`s clients, and to guarantee that they aren`t tied to cash bonds or deposits.
The above summarizes how these cards, to be put into circulation, operate, hoping that your Fatwa includes the position of Sharia in the following situations:
A- The company sells its products via these cards (Halalcom), where the cash price is paid via installments, and no extra charges or interests is collected in return.
B- The company may buy a product, which it doesn`t have, from the local market upon the client`s request, then sells it to him/her for its cash price through installments after determining the cash price of that product , and at the same time acquainting the client with that price when concluding that deal. This is provided that the profit margin is reasonable and within the proper limits.
Moreover, the client can purchase any of the company`s products through Islamic Murabaha…?
Answer:
All perfect praise be to Allah, The Lord of The Worlds; and may His blessings and peace be upon our Prophet Mohammad and upon all his family and companions.
The Iftaa` Board has reviewed the above, and came to realize that the company gives that card to the client who purchases any of its products through an installment-sale contract concluded between the two parties without any interests, and without charging the client with any amounts in return for getting that card.
Having reviewed the letter of the Jordan Ahli Bank`s manager by our Board, in which the former clarified the nature of that card within the letter and how it operates, our view that it doesn`t involve any interests, and that the Bank`s task is to issue it in return for an annual fee paid by the company.
The Installment-sale method adopted by (MSC) via the above mentioned card is permissible so long as it involves zero-interest and complies with the rules of Islamic Sharia. Moreover, it is permissible for the (MSC) to employ Islamic Murabaha provided that it adheres to its Sharia rules and conditions. And Allah Knows Best.
Iftaa` Board
Chairman of the Iftaa` Board, Chief Justice, Izz Al-Deen Al-Tamimi
Dr. Mohammad Abu Yahia
Dr. Abdulsalam Al-Abbadi
Sheikh Saeid Hijjawi
Sheikh Na`eim Mojahid
Dr. Wasif Al-Bakhri
Dr. Yousef Gheezaan