Fiqh Review on The Use of Sharia Credit Card Based on Fatwa DSN MUI No: 54/DSN-MUI/X/2006 (original) (raw)
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Islam is the perfect religious concept, all of life's activities are measured in the purpose of sharia enforcement. Maqashid sharia is a benchmark in determining activity in the determination, whether it is by these objectives or not. Credit card is a form of facility created to facilitate consumers in making transactions. This product is multiplying and changing the paradigm of consumers in making transactions in the digital era. Credit card has many benefits and functions, one of its functions is substituted for cash. Method of this study using literacy, data collection and collection of objects. The finding is that the contemporary scholars agree that in practice sharia credit cards are permissible as long as there are no aspects of gharar, usury, but also contain the maslahah of the users. DSN MUI responded favourably to the credit card with the issuance of the fatwa DSN No. 54/DSN/-MUI/X/2006 concerning KKS (Sharia Credit Card).
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The purpose of this paper is to conceptualise an Islamic credit card (or mushārakacard) based on the Islamic principles of mushāraka mutanāqisa. A qualitativemethodology was employed, with qualitative content analysis used on AAOIFI Shari’aStandard (SS) No. 12 “Sharikah (Musharaka) and Modern Corporations” to derivekey rulings and controls for mushāraka mutanāqisa, which were then used toconceptualise an Islamic credit card based on mushāraka mutanāqisa. Theoretically,it should be possible to develop an Islamic credit card based on the Islamic rulings ofmushāraka mutanāqisa. The concept provided in this paper could be adopted as apilot project by Islamic retail banks. Evidence suggests that a new revised standardfor credit cards (included within AAOIFI Shari’a Standard (SS) No. 2) was underconstruction while this research was being undertaken. Therefore, it was not possibleto review what perhaps may be relevant information for conceptualising a new Islamiccredit card. The research i...
THE STUDY ON ISLAMIC CREDIT CARDS (PRACTICE BY ISLAMIC BANKS IN MALAYSIA
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Sri Lankan Journal of Arabic and Islamic Studie, 2018
Credit card is one of the easy facilitation provided by banks and financial institutions. Nowadays the demand for credit cards is increased because of safety and easy access to money. In this manner the model for Islamic credit cards has been introduced by scholars in the field to substitute the conventional credit cards. Islamic credit card has played a vital role in the development and success of Islamic banking all over the world, especially in Malaysia and Indonesia; those are the leading countries in practicing the Islamic credit cards on the basis of Shariah compliance contracts. At the same time, the conventional credit cards have achieved a significant growth among the Sri Lankan customers, where all non-Shariah banks have credit card facility. So there's a need to examine the possible application of Islamic credit cards by the Islamic banks too. So, this research aims to analyze the possibility to introduce the Islamic credit cards in Sri Lanka in order to facilitate the customers' financial needs. The researcher has taken Malaysian and Indonesian Islamic credit card models to analyze the permissibility of contracts and to propose a suitable model for Sri Lanka. The data collected for this research are both primary and secondary sources. Primary data is collected by interview and discussion. Library references, books, journals, magazines, websites and any other banks related documents have been used as secondary data. Also this research is analyzed through comparative analyzing system. According to the data analyzed, Islamic credit cards are still not applied by Islamic financial institutions in Sri Lanka because of some internal barriers that involved on it.
The Islamic Credit Card Based on Ujrah Concept
Journal of Emerging Economies and Islamic Research
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...
Shariah Compliant Credit Cards: Disputes and Steps Forward
Journal of Emerging Economies and Islamic Research, 2018
The major studies on Islamic credit card (ICC) started in 2011 until 2013 specifically examining operations and structures of ICC and behavioural studies. The other studies mostly explored and investigated behaviour and intention to utilise ICC. There are however, few studies comparing between ICC and conventional credit card (CCC) preference. On the same note, only a small number of studies have explored the importance of shariah compliance in influencing the behaviour of ICC adoption. Since shariah compliant credit cards are not popular as compared to the conventional ones, it is timely to review the breadth and depth of ICC studies in order to acknowledge the existence of the product in the market. Whether the product has been unattractive, lack of marketing and promotion from the bankers' part or the public's ignorance, insensitivity and unconsciousness about the products, the paper will provide an overview of the research work that has been conducted thus far. The studies on ICC are still limited in numbers and the focus areas are only skewed towards behaviour, satisfaction and the structure of the cards. The key features of ICC that differentiate the product with CCC still remain invisible and unnoticed. There is a critical need to further investigate another perspective of ICC by identifying the key features of shariah compliance and leverage on the benefits to consumers by protecting and preserving basic needs as well as promoting healthy banking environment.
Current practices of Islamic credit cards in Malaysia
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The practice of Islamic credit cards today is still controversial among Muslim scholars particularly concerning to its contracts and as well as its efficiency to attain Maslahah. The Islamic credit card is very important and some studies have done on it. Conversely, studying about the contrast of the various product of Islamic credit cards practiced in Malaysia, although in the recent year is still limited. Consequently, this paper would like to undertake this concern by comparing the various products of Islamic Credit Cards in Malaysia. Islamic credit card known as Credit Card-i is such of the alternate banking products instigated through Bank Negara Malaysia (BNM), also Islamic financial institutions in Malaysia to exchange the conventional credit card. This article aims on evaluating the bay‟ al-„Inah, Tawarruq as well as Ujrah development while practiced over Bank Negara Malaysia (BNM) as well as Islamic Financial Institutions in Malaysia with Shariah compliance perceptions. The...
SSRN Electronic Journal, 2000
For all practical purpose, qard and qard hasan are generally regarded synonymous from orthodox Islamic viewpoint, because, due to the categorical prohibition of riba in the Qur'an, qard (loan) is considered ribawi (subject to the rules pertaining to riba prohibition), and therefore only gratuitous monetary loans-without any benefit to the lender-are considered permissible. The concept of qard hasan has gained new relevance and importance as it is being used to structure Islamic financial products, such as demand deposit products in banks and credit cards. Using qard hasan as the basis for such products leads to some serious anomalies. But more importantly, is the traditional understanding of qard hasan consistent with the Qur'an as well as hadith? What scriptural evidences are there to support the traditional understanding? Also, in light of the impact of credit cards on personal financial health, is the concept of qard hasan at all compatible with credit cards, and thus, structuring Islamic credit cards? In this paper, we focus on how the Qur'an illuminates this concept of qard hasan and also how it is treated in hadith. While evidence from hadith is looked at, the primary purpose of this paper is to examine the Qur'anic approach to this concept and practical implications for Islamic product structuring. This conceptual paper critically examines the Qur'anic perspective on qard hasan and identifies implications that are seriously at odd with the traditional understanding and with some contemporary practices in Islamic banking and finance.
Analysis Of Accounting Treatment Of Islamic Credit Card In The Islamic Perspective
2009
The Islamic Credit Card is facility provided by Bank for the communities and the customer as one of the facilities in order to fulfill the basic need and secondary need. However, the community began to consider to use credit card in being caused by the existence of the interest element that was regarded as something that was prohibited by Islamic Law. Savirul "Analysis of Accounting Treatment of Islamic CreditCard in the Islamic Perspective (Study Case in Bank Danamon Syariah)". One of the indicators that could be made to measure Sharia Compliance is avoidance of Islamic prohibited acts, especially in providing the credit card service. This research aimed at knowing as well as studying the system and the accounting treatment that was done by Islamic Banking in providing the credit card service. The analysis method used by writer in this research is the Qualitative Descriptive Analysis.