Is Using Credit Cards To Pay Tuition Permissible?

28 February, 2020

Q What is the ruling of the Shariah on using credit card (Visa, Master…) by parents to pay the tuition of their children where the company which issues the cards deducts an agreed upon percentage and deposits the rest in the school's bank account within two or three days?

Answer

In the Name of Allah, Most Gracious, Most Merciful.

All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.

In this fatwa:

It is permissible to deal with the aforesaid credit cards and collect payments using them, provided that no additional fees are added to the percentage which is already agreed upon with the parents of the students.

Answering your question, the General Iftaa’ Department in Jordan, states the following:

The contractual relationship between the company which issues the credit cards and the school is based on authorization and brokerage. The school administration authorizes the company to collect the tuition fees paid by parents through credit cards in return for an agreed upon percentage.

Accordingly, it is permissible to deal with the aforesaid credit cards and collect payments using them, provided that no additional fees are added to the percentage which is already agreed upon with the parents of the students.

The resolution of the International Islamic Fiqh Assembly issued in its twelfth session stated, “It is permissible for the bank which issues the credit cards to charge a commission from the seller in return for the purchases of the customer, provided that commodities prices paid for by credit card are the same as in cash.”

Almighty Allah knows best.

Source: https://www.aliftaa.jo