Submitted by: Submitted by zizebra
Views: 335
Words: 1816
Pages: 8
Category: Business and Industry
Date Submitted: 04/13/2012 03:41 PM
Credit Cards from Shari’a
Perspective
Dr. Abdulazeem Abozaid
Consultant & Shari’a
Trainer
Emirates Islamic Bank
1
ﺑﺴﻢ اﷲ اﻟﺮﺣﻤﻦ اﻟﺮﺣﻴﻢ
THE FEATURES & USES OF CREDIT
CARDS
Credit Card provides a revolving credit facility within the
credit limit and credit period determined by the issuer of
the card. It is also a means of payment.
The holder of a credit card is able to pay for purchases
of goods and services and to withdraw cash, within the
approved limit.
The amount of the purchase becomes the cardholder’s
debt to the credit card issuer.
The card issuer determines the credit limit and taking
into account customer’s salary and previous credit rating
when deciding on how much credit to give.
3
When purchasing goods or services, the cardholder is
billed on a monthly basis and is given a free credit period
during which the amount due should be paid and no
interest is chargeable. The cardholder is also allowed to
defer paying the amount due and is charged interest for
the duration of the credit. In the case of a cash
withdrawal, there is no free credit period.
If using the card overseas, foreign exchange charges
and transaction charges may also be applicable.
4
Card networks (Visa, MasterCard, DinersClub etc.) are
accepted worldwide and allow a cardholder to purchase
goods directly.
Credit cards can be used online (on the Internet).
Also, they can be used to withdraw cash from a bank or
ATM.
Having a credit card is safer and more practical than
carrying large amounts of cash when traveling, or for
buying high value items such as jewelry.
Credit cards are also useful to make direct debit
arrangement for regular bills such as utilities and
telephony charges, and for paying in foreign currency
when traveling abroad
5
Some cards come with additional services such as
medical cover for international holidays, purchase
protection and a variety of promotional offers.
The interest charges on credit cards...