The First Topic: Currency Exchange via Entries in the Client's Account
Currency exchange via entries in the client's account is permissible, as mentioned in the resolution of the Islamic Fiqh Council [442] -Decision No. (55/4/6) Regarding Al-Qabd: Its Forms - Especially the New Ones - and Their Rulings: (The Islamic Fiqh Academy Council convened during its sixth conference in Jeddah, Kingdom of Saudi Arabia, from 17 to 23 Sha'ban 1410 AH, corresponding to March 14-20, 1990 AD.) After reviewing the research submitted to the Academy regarding the topic of "Al-Qabd: Its Forms - Especially the New Ones - and Their Rulings," and listening to the discussions that took place around it, it was decided that: Firstly: The taking possession of funds, whether physically through hand-to-hand transfer, measurement, or weighing in food, or through transportation and transfer to the possession of the receiver, is considered valid in terms of both acknowledgment and ruling through mere allowance for disposal, even if physical possession is not present. The manner of taking possession varies according to the nature of the items and the differing customs regarding what constitutes possession for them. Secondly: Among the forms of the legal possession recognized in Shari'ah and custom are: 1.      The banking entry for a sum of money in the client’s account in the following cases:        A: If a sum of money is deposited directly into the client’s account or through a bank transfer.= =B: If the client concludes an instant currency exchange contract between him and the bank when purchasing currency for another currency on behalf of the client. C: If the bank, at the request of the client, deducts an amount from one account to another account in another currency, either within the same bank or another, for the benefit of the client or another beneficiary. Banks must adhere to the rules of currency exchange contracts in Islamic Shari'ah. The delay in banking entry is permissible in a manner that allows the beneficiary to receive actual possession for the periods customary in financial markets. However, the beneficiary is not permitted to dispose of the currency during the permissible delay except after the effect of the banking entry allows for actual receipt. ((Majallah Majma' Al-Fiqh Al-Islami (= Journal of the Islamic Fiqh Council), (Issue Six (1/772)). , and this has also been endorsed by the Dar al-Efta in Kuwait [443] -The Fatwa Committee in Kuwait stated the following: "The recording in current accounts, as it is commonly practiced in a manner that cannot be reverted except by the will of the account holder, is considered a form of possession, and it is deemed possession in legal terms based on the prevailing custom in currency transactions. This is because possession has been established in Sharia by the command to do so, and no specific method for it has been defined. There is no difference between gold and paper currencies regarding possession, provided that deferring payment in this transaction is strictly prohibited due to the usury of deferred transactions, which is forbidden by the text of the hadith, on the condition that it is hand-to-hand." "Al-Durar Al-Bahiyyah Min Al-Fatawa Al-Kuwaitiyyah" (6/8). and the Fatwa Committee in Jordan [444] - "The" Fatwa of Dar al-Efta" in Jordan stated the following: "Islam has mandated the exchange in contracts of mutual compensation to serve as a tool for safeguarding rights and a standard for stabilizing contracts and transactions. Islam has emphasized the importance of the exchange of usurious assets and currency exchange more than it has in other matters. The jurists have stipulated that this exchange must be actual, whereby the delivery of both compensations occurs within the same session, without requiring immediacy in the delivery; it suffices that the transaction takes place in the same session, even if the delivery is delayed, as long as the contracting parties remain in the same session and do not separate. With the advancement of humanity, modern means for conducting transactions of mutual compensation in general and currency exchange in particular have emerged, making it difficult to effect actual possession. Therefore, it has become necessary to establish a legal possession in place of the actual possession to alleviate hardship and difficulty from people. Legal possession is a conceptual possession that serves as a substitute for actual possession. Legal possession can substitute for actual possession if two conditions are met: First, that common commercial practices and international laws accept these means and consider them complete possession. In this regard, economic and legal customs in possession operations must be taken into account as long as they do not contradict the principles of Sharia. Examples of this include: deposits and bank entries, and checks with sufficient funds that are negotiable." Official Website of the Fatwa Committee in Jordan - Fatwa (No: 3035). ; this is because the command regarding possession is stated in Islamic law in general terms, and what is mentioned in general terms in Islamic law must return to customary practices, and it has become customary to consider bank entries as valid possession [445] - See: "Al-Mughni "by Ibn Qudamah (4/85); "Majallat Majma' Al-Fiqh Al-Islami" (Journal of the Islamic Fiqh Council) (6/592), Decision No. (55/4/6). .
The second Topic: Currency Exchange via Instant Deduction Cards.
It is permissible to engage in currency exchange through instant deduction cards [446] -Debit Card: An example of such cards is the ATM card, which is issued to customers who have accounts with the issuing bank; this allows for immediate deductions from the customer's account upon usage through ATM machines. The use of this type of card is generally limited to ATM machines or electronic immediate deduction systems.    This card is characterized by the following: It is issued to customers who have a credit balance with the issuing bank. It is typically provided for free. It is usually used within the geographical area of the state or in the areas where the bank's branches are connected to a computer system linked to the database regarding the customer's account and balance. The deduction is made from the customer's account immediately upon using the card. In case of computer system failure—and sometimes there is a limit (a small amount)—the customer can use this card within the confines of this limit until the computer system is restored. It is mainly used for cash withdrawals from ATMs or to inquire about specific information related to the customer, or to obtain some services offered by the bank, such as currency exchange rates, purchasing traveler's checks, in addition to checking the balance, or requesting a summarized or detailed account statement, or transferring between the customer’s accounts. Source: "Majallat Majma' al-Fiqh al-Islami al-Duwali" (=International Journal of Islamic Fiqh Academy), Issue 7 (1/448, 449).   , as indicated by the resolution of the Islamic Fiqh Council [447] -Decision No. (55/4/6) Regarding "The Taking of Possession: Its Forms - Particularly the New Forms - and Their Rules": The Islamic Fiqh  Council convened in its sixth conference in Jeddah, Kingdom of Saudi Arabia, from 17 to 23 Sha'ban 1410 AH, corresponding to March 14 - 20, 1990. After reviewing the research submitted to the Academy regarding the subject of "The Taking of Possession: Its Forms - Particularly the New Forms - and Their Rules," and listening to the discussions that took place on the matter, it was decided: First: The taking of possession of assets, whether it is physical, as in the case of taking by hand, weighing, or measuring food, or transferring to the possession of the taker; is considered as valid both in terms of legal recognition and rulings through clearance, along with the empowerment to dispose of the assets, even if physical possession is not realized. The manner of taking possession of items varies according to their nature and the differing customs regarding what constitutes possession. Second: Among the forms of legal possession recognized by Islamic law and custom are: 1.    The banking entry of a sum of money in the client’s account in the following cases: (a) If a sum of money is directly deposited into the client's account or through a bank transfer. (b) If the client enters into an immediate exchange contract with the bank for the purchase of one currency with another on behalf of the client. (c) If the bank, upon the client's request, deducts a sum from one account to another in a different currency, whether at the same bank or another, for the benefit of the client or another beneficiary. Banks must adhere to the rules of exchange contracts in Islamic law. It is permissible to delay the banking entry in a manner that allows the beneficiary to achieve actual receipt for the customary periods in trading markets. However, it is not permissible for the beneficiary to dispose of the currency during the permissible period except after the effect of the banking entry allowing actual receipt has occurred. ((International Journal of Islamic Fiqh Council)), Issue Six (1/772), see also (1/132). . This is because the instant deduction card is covered, and the price is deducted immediately upon the conclusion of the sale, which constitutes a legal transfer in place of actual delivery [448] - See: "International Journal of Islamic Fiqh Council", (Issue Seven). .
The Third Topic: Currency Exchange via Credit Cards
It is permissible to engage in currency exchange through covered credit cards; however, it is not permissible to do so with uncovered cards.