1. Is it Islamic Credit Card is Permissible
in Islam?
Ahmad Hizamudeen Bin Hang Tuah
Muhamad Izudin Bin R.Azeman
Muhammad Fitri Hakim Bin Mihat
2. Definition of Credit Card
• Card , cheque , voucher, coupon give to
individual.
• Card make the individual which is cardholder
get a cash, good and service in credit.
• The cardholder will make the agreement with
issuer of card (bank).
3. History of Credit Card
• New York 1951, Frank NcNamara America, Chairman
of the Hamilton Credit Corporation with his old
pals, Alfred Bloomingdale and his lawyer, Ralpd
Sneider dinner at a top restaurant in New York
• However , he was forget to bring a wallet to
pay the bill. So, contact his wife to bring
money to pay the restaurant bill. This incident
was embarrassed him
4. • He got an idea to start credt card when people
can eat and drink without bringing money
together
• He suggest to other restaurant and start the
Dinner’s Club
• Customer will eat and drink in restaurant and
Dinner’s Club will pay for it. Than, customer
will pay to Dinner Club specific charge.
5. • Since then , America Express credit was
introduced in 1958.
• Then credit card known as Visa was
introduced and the uses of magnetic strip on
the back introduced in 1970.
11. • Using a conventional credit card is within
period allowed
~ In a case, a person intends to use the
conventional credit card that is apply with the
condition of Interest or usury, but the aims is
to always care of the repayment period before
the interest charged which is Riba.
= OIC International Fiqh Academy-Not
Permissible
12. • Participation Fees, Renewal and Conversion Card
~ The Sanction: It is Permissible. There is no conflict
from the perspective of Islamic law, it is considered
as a fee set by the manufacturer for the services
provided.
• Condition to terminate the contract according to
the issuer only
~ The issuer has the right to terminate the contract
even without the consent of the cardholder.
= The Sanction: The conditions are accepted and
PERMISSIBLE
13. • Currency Conversion with the Credit Card
(Money Exchange or 'As-Sarf').
~ Typically, the cardholder can use this card in
many countries in the world to buy whatever
goods he wanted, to use this card, the bank
will pay the bills outside the country just as
quickly with the currency of the country
involved
= The Sanction : HARAM.
14. • Penalties For Late payment of Obligation bills
for 'Credit Card.
~ As contained in the contract for the 'Credit
card, that card holders will pay a fine due to
the late settlement of compulsory bills within
30 days.
= The Sanction : HARAM, there are elements of
Riba An-nasiah
15. • Interest or charge on renewal of Credit Card
Bill.
~ As contained in the contract 'Credit Card' the
cardholders that are not willing to settle the
bill in full, then the remaining bills will be
charged.
= The Sanction : HARAM, in Islam without any
doubt it is prohibited due to Riba.
17. • Different opinion among Muslim jurist.
• Bay al Inah is invalid.
( according to imam Hanafi school, Imam Malik, Imam
Hambali)
• Bay al Inah is permissible.
( according to Imam Shafie)
• Less acceptable to some middle eastern investors because
Inah legitimize riba.
18. CONCLUSION
• As a conclusion, Islamic credit card is
permissible in Islam according to imam
Shafie, it is because Bay al Inah have a perfect
contract rule and requirements, and can help
people based on our intention to help others.
