What is the rule on KFH issuing VISA credit cards that can also be used to withdraw money from ATM machines? What is the rule on acting as an intermediary to issue credit cards?
Credit cards include banking services that benefit both the cardholder and the seller who accepts them, and in some cases they include qard hasan by paying its holder’s financial obligations when his account is overdrawn. In many cases it includes a guarantee (i.e., standing surety, with the right of the bank to ask the customer to refund the amount paid by the bank). There are charges to be paid by the cardholder in return for these services, and this is allowed. In addition, there is a commission to be paid by the seller who accepts dealing with the credit card, and this commission is considered an agency fee for acting as an intermediary between the seller and the cardholder, for [the card issuer] promotes dealing with the seller, secures clients for him, and collects debts [owed to him]. The guarantee (if any) has no effect on the commission because the commission is not increased in return for a guarantee and the guaranteed amount is not taken into account. The commission is also not affected by the actual amount of the payment. This is applicable to the relation between KFH and the credit card sponsor where the commission is in return for the service between these two parties.
The credit card can also be used to withdraw money from ATM machines for a fee. This fee is for transferring the money to the cardholder, and is thus allowed, whether the payment is from the holder’s account positive balance or from the holder’s overdrawn account for qard hasan. The transfer fee can be fixed or a percentage on the condition that the fee is not linked to time.
This answer is applicable to VISA credit cards that are independently issued and managed by KFH. It is also applicable to the mediation performed by KFH in nominating customers to obtain similar credit cards where it only acts as a mediator and merits a fee for doing so.
Kuwait Finance House