Question:
I wanted to know if it is permissible to purchase gift cards from ebay at a lower price. Example a £135 gift card is being sold for £120.
Can we purchase that or is that not permissible in Islam?
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
The Answer:
It is not permissible to purchase or sell pre-loaded gift cards at a different rate to the loaded monetary value. Furthermore, in many gift cards, it is against the agreement to sell to third parties.
The Fiqh (jurisprudence of the answer):
The money loaded onto a gift card is a form of e-money as discussed in the Electronic Money Regulations 2011 by the Financial Conduct Authority (FCA)[1]. Furthermore, the FCA has regarded e-money as a monetary value represented by a claim on the issuer[2].
From an Islamic jurisprudence perspective, the money loaded onto the card will be maḍmūn (guaranteed) and effectively a dayn (claim). It is not permissible to transact such claims with other than the debtor[3].
And Allah Ta’ālā Alone Knows Best
Mufti Faraz Adam
www.darulfiqh.com
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https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/81328/emoney_directive_consultation.pdf
“E-money is not strictly a surrogate for cash. Nor are prepaid cards a direct substitute for debit or credit cards. E-money works best when it facilitates new solutions to existing problems. This is, first, because e-money has its own cost and revenue structures, depending on different business models; and secondly, because customers tend to switch away from existing payment methods only when e-money offers a better way to make a payment. The most successful emoney applications have been those that have solved specific problems. Examples include path breaking ways to make internet payments; send and receive money on-line; a host of prepaid card applications such as gift cards and travel money cards; and nascent mobile phone payment methods.”
[2] FCA (2013) ‘ The FCA’s role under the Electronic Money Regulations 2011’ Available at
2.2 Regulation 2 defines e-money as monetary value represented by a claim on the issuer that is:
• stored electronically, including magnetically;
• issued on receipt of funds for the purpose of making payment transactions (see regulation 2 of the PSRs);
• accepted as a means of payment by persons other than the issuer; and
• is not excluded by regulation 3 of the EMRs (see paragraphs 2.4-2.6 below). 2.3 Examples of e-money include prepaid cards that can be used to pay for goods at a range of retailers, or virtual purses that can be used to pay for goods or services online.