A shari’a-compliant credit card which provides a revolving credit facility within a credit limit and during a credit period determined by the issuer. This card allows the holder to pay for purchases of goods and services and to withdraw cash within a period limit as specified in the card contract. The cardholder has access to a interest-free credit amount during the approved period, i.e., without having or being required to pay any interest.
Furthermore, it is impermissible to charge the cardholder any interest in the case of delay in paying the amount due. In order to avoid the payment of interest, the credit card can, from a shari’a perspective, be based on either of four shari’a-acceptable contracts: hawalah, wakalah, kafalah, or qard.
Nevertheless, it is permissible for the issuer to charge a commission to the trader or party accepting the card. The commission is typically a percentage of the purchase price of the goods or services purchased using the card.
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