[Phadlie]

I would like to know how islamic bank introduce credit card and how does it follow Shariah rules in prohibiting interest rate in credit card?

[wynelle]

i would like to know how islamic bank introduce credit card and how does it follow Shariah rules in prohibiting interest rate in credit card?

Well, I'd imagine it doesn't care about the Shariah rules, since the bank probably isn't a religious institution but a financial one. In what country, would this bank be located? Knowing the rules of Shariah, why would any practicing Muslim want to get a credit card knowing that it would charge interest?

In the USA, banks don't care what religion a credit card user is. To take out a credit card, the user must sign an agreement that states interest will be charged. So would it also be a violation of Shariah to apply for a credit card and use a credit card knowing that interest will be charged?

[Emland]

Credit card issuers make more money off the merchant transaction fees than they do interest, so I suppose there could be such a thing.

Introducing it would be something for the marketing department.

[heyyabeyya]

Islamic Credit Card Based on Bai` `inah
Islamic banking institution proposed to offer Islamic credit card based on the combination
of bai` `inah and wadiah concepts. The proposed mechanism is as follows:
i. The customer purchases an asset from the bank on deferred terms (the purchase
price comprises cost plus profit); for example, RM11, 800 (RM10, 000 + RM1,
800) to be paid within one year by the customer;
ii. The customer thereafter will sell back the asset to the bank on cash basis (at
cost value); for example, RM10,000. The selling price of the asset is lower than
the purchase price. This is the amount which will be credited into a marginal
wadiah account of the bank for customer's use.
The above mechanism of Islamic credit card was proposed to the Council for
deliberation to determine whether it is in compliance with Shariah.
Resolution
The Council in its 18th meeting held on 12th April 2001 / 22nd Muharram 1422
resolved that the mechanism of Islamic credit card which applies bai` `inah
concept to generate funds for credit purposes by a customer who requests for
the Islamic credit card is permissible.

[heyyabeyya]

Islamic Credit Card Based on Bai` `inah
Islamic banking institution proposed to offer Islamic credit card based on the combination
of bai` `inah and wadiah concepts. The proposed mechanism is as follows:
i. The customer purchases an asset from the bank on deferred terms (the purchase
price comprises cost plus profit); for example, RM11, 800 (RM10, 000 + RM1,
800) to be paid within one year by the customer;
ii. The customer thereafter will sell back the asset to the bank on cash basis (at
cost value); for example, RM10,000. The selling price of the asset is lower than
the purchase price. This is the amount which will be credited into a marginal
wadiah account of the bank for customer's use.
The above mechanism of Islamic credit card was proposed to the Council for
deliberation to determine whether it is in compliance with Shariah.
Resolution
The Council in its 18th meeting held on 12th April 2001 / 22nd Muharram 1422
resolved that the mechanism of Islamic credit card which applies bai` `inah
concept to generate funds for credit purposes by a customer who requests for
the Islamic credit card is permissible.

[heyyabeyya]

Islamic Credit Card Based on Bai` `inah
Islamic banking institution proposed to offer Islamic credit card based on the combination
of bai` `inah and wadiah concepts. The proposed mechanism is as follows:
i. The customer purchases an asset from the bank on deferred terms (the purchase
price comprises cost plus profit); for example, RM11, 800 (RM10, 000 + RM1,
800) to be paid within one year by the customer;
ii. The customer thereafter will sell back the asset to the bank on cash basis (at
cost value); for example, RM10,000. The selling price of the asset is lower than
the purchase price. This is the amount which will be credited into a marginal
wadiah account of the bank for customer's use.
The above mechanism of Islamic credit card was proposed to the Council for
deliberation to determine whether it is in compliance with Shariah.
Resolution
The Council in its 18th meeting held on 12th April 2001 / 22nd Muharram 1422
resolved that the mechanism of Islamic credit card which applies bai` `inah
concept to generate funds for credit purposes by a customer who requests for
the Islamic credit card is permissible.