Fatwa #1776828 March 2009United States of America
Is it halal to use this kind of debit card?
Question
I pray this question finds you in good health and Iman.
A local bank issues prepaid debit cards in such a way that if the initial deposit is less than 100 Eur, then the setup fee will be 5 Eur. If it's between 100 and 500 Eur, the fee is 7.5 Eur. If it's above 500 Eur the fee is 10 Eur. For any additional future deposit there's no such fee. Of course, there are fees that are charged when a transaction occurs, monthly administration fees etc., but this initial fee is a bit problematic.
Is it halal to use this kind of debit card?
Answer
In the name of Allah, Most Gracious, Most Merciful
Assalaamu `alaykum waRahmatullahi Wabarakatuh
At the outset, it is important to mention that the system of conventional banking is completely against the rules and principles of Shari’ah.
If it is possible to avoid the use of the debit card and the conventional bank, one should do so. However, out of darurah (necessity) ‘Ulama have given the permissibility to utilize its services. While one is using the bank’s services, tawbah and istighfaar should be made consequently.
And Allah knows best
Wassalamu Alaikum
Ml. Asif Umar,
Student Darul Iftaa
Checked and Approved by:
Mufti Ebrahim Desai
Darul Iftaa