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Service Fees On Credit Card's Balance Transfer Facility
Asalam u Alaikum!
I want to ask about a couple of things regarding balance transfers and money transfers offer on credit cards.
The commission or the service fees charge on balance transfers and money transfers on the credit card is that okay?
Is this not classified as an interest even though they do advertise as 0% and they don’t charge any interest on the amount borrowed whether it balance transfer or money transfer?
I want to know, specially with regards to money transfer as we are borrowing money from a credit card Which is like a 3% service fees taken in advance but you’re not paying any interest on it so this is the service fees or the commission charged in advance is ok as per Islamic rulings?
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4 Replies
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Service Fees On Credit Card's Balance Transfer Facility
updated 3 weeks, 1 day ago
3 Members
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4
Replies
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Please refer to the following video
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Asalam u alaikum!
Thanks for your reply unfortunately this doesn’t answer my query.
I was asking in terms of the commission that is charged up at the front when requesting a balance transfer or money transfer from my credit card. This video relates to shopping on a credit card and then not clearing the credit card every month and then whatever interested is charged. This is classified as penalty. but my query is if you are transferring a balance from one credit card to another or if we are requesting the money to be a transferred from a credit card to our current account there is a commission that is charged at the front but they do advertise as 0% interest so there’s no interest charged on further but there’s only commission or service fee that is charged at the front so I was asking whether that is allowed or not?
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The credit balance given against credit card is a loan nevertheless, but when we avail Balance Transfer Facility, the bank charges a service fee and not interest on that loan amount. Therefore, such commission/service fee doesn’t constitute interest payment.
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Asalam u alaikum!
If possible can you please reply to my query as the original reply doesn’t answer my query.
JazakaAllah khair
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