The islamic credit card based on ujrah concept: conceptual review
Islam is a way of life that seeks to protect the human being from financial harm through prohibiting riba, maysir, and gharar. Islamic credit card is one of the alternative banking products offered by Islamic financial institutions to replace the conventional credit card. The Islamic credit card...
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| Main Authors: | , |
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| Format: | Article |
| Language: | English English |
| Published: |
2020
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| Subjects: | |
| Online Access: | http://eprints.unisza.edu.my/7232/1/FH02-FPP-20-42416.pdf http://eprints.unisza.edu.my/7232/2/FH02-FPP-21-52244.pdf http://eprints.unisza.edu.my/7232/ |
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| Summary: | Islam is a way of life that seeks to protect the human being from financial
harm through prohibiting riba, maysir, and gharar. Islamic credit card is
one of the alternative banking products offered by Islamic financial
institutions to replace the conventional credit card. The Islamic credit
card was initially based on the Inah concept. However, this concept was
criticized by both contemporary and classical Islamic jurists, especially
in the Hambali, Maliki, and Hanafi school of thought. Therefore, some
Islamic banks of Malaysia offer a better alternative, developing the credit
card on the concept of Ujrah, which is less ambiguous among Islamic
scholars. This study will explore the background of Islamic credit card
base on the concept of Ujrah. It will then further discuss the justification
for the permissibility of the concept. Finally, this paper will highlight the
issues related to the practice of Ujrah in Islamic credit card operations.
The findings indicate that the credit cards based on Ujrah (fee) are
permitted from the Sharia perspective as long as they do not involve any
element of riba (interest). However, it involves Shariah issues on its
practice of ibra (rebate) and penalty charge. To fulfil the objectives of
the study, it will refer to the Quran, Hadith, classical Islamic
jurisprudence, juristic opinion of Islamic scholars, Shariah standards of
international Islamic standard-setting bodies, and other policy
documents of the Islamic banks. |
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