Tradable and negotiable, money-market certificates that represent pecuniary rights payable at sight or a after a short period of time. In customary practice, commercial paper are instruments of payment and can replace cash in transactions. Commercial paper include bills of exchange, promissory notes, and cheques. Under shari’a, it is permissible to transact in commercial paper provided that it doesn’t contravene shari’a precepts and principles. For example, shari’a prohibits dealings in commercial paper which involve riba receipt or payment or delay of payment in transactions that require simultaneous possession (taqabud). More specifically, bills of exchange or promissory notes cannot be used as countervalues in currency exchange transactions (contract of sarf) or as countervalues for capital in salam transactions.

Furthermore, shari’a prohibits the discounting of commercial paper. However, it not impermissible to pay less than the face value of a commercial paper to the first beneficiary prior to maturity date as long as this is not provided in an agreement made before maturity date. Shari’a doesn’t permit, also, the selling of commercial paper that has not fallen due for an amount equal to or higher than its face value as this results in riba of waiting (riba al-nasi’ah) or both riba of deferment and riba of surplus (riba al-fadl), respectively