Is it permissible for me to set up an Internet business where customers are allowed to purchase with credit cards, permissible checks, etc.? Is it permissible for customers to use credit cards to pay for their purchases?

All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad is His slave and Messenger.

Trading through Internet is allowed if the conditions of a valid transaction are observed. Using and issuing credit cards are permissible provided they do not contain any Riba (interest and/or usury) in any transaction. This is the resolution that is passed in the Twelfth Session of the Fiqh Council.

As for a seller, he can sell against credit cards regardless of their sources and kinds since the Prophet and his Companions used to purchase from and sell to the Jews while they were aware of the fact that the Jews deal with Riba and own ill-gotten properties as mentioned in the Quran.

Allaah Knows best.