A Critical Shariah and Maqasid Appraisal of Islamic Credit Cards
Islamic banks and financial institutions have recently started issuing Islamic credit cards as substitutes for conventional credit cards after the Shariah scholars, due to the Riba involved, unanimously deemed the traditional credit cards unlawful. However, Islamic credit cards have different struct...
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| Format: | Article |
| Language: | English |
| Published: |
Università degli Studi di Torino
2022-12-01
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| Series: | European Journal of Islamic Finance |
| Subjects: | |
| Online Access: | https://www.ojs.unito.it/index.php/EJIF/article/view/6816 |
| _version_ | 1828084553314467840 |
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| author | Abdulazeem Abozaid, Dr. Saqib Hafiz Khateeb |
| author_facet | Abdulazeem Abozaid, Dr. Saqib Hafiz Khateeb |
| author_sort | Abdulazeem Abozaid, Dr. |
| collection | DOAJ |
| description | Islamic banks and financial institutions have recently started issuing Islamic credit cards as substitutes for conventional credit cards after the Shariah scholars, due to the Riba involved, unanimously deemed the traditional credit cards unlawful. However, Islamic credit cards have different structures; some have been structured based on Eina or Tawarruq sales even though these two types of deals were ruled unlawful by the Fiqh academies. However, the most common structure of Islamic credit cards is the Ijarah model, where the card issuer is deemed a lessor of the services embedded in the credit card, apart from the provision of credit, against fixed periodical fees. Although this structure seems acceptable from a Shariah point of view and has been endorsed by the Shariah boards of the issuing Islamic banks, it involves some issues that must be carefully addressed. The paper elaborates on these critical issues and analyses the different contractual relationships involved in these cards to outline the prospectus of a genuine Shariah-compliant credit card.
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| first_indexed | 2024-04-11T04:26:39Z |
| format | Article |
| id | doaj.art-fbdef89e809d4558a6d3124a780bd750 |
| institution | Directory Open Access Journal |
| issn | 2421-2172 |
| language | English |
| last_indexed | 2024-04-11T04:26:39Z |
| publishDate | 2022-12-01 |
| publisher | Università degli Studi di Torino |
| record_format | Article |
| series | European Journal of Islamic Finance |
| spelling | doaj.art-fbdef89e809d4558a6d3124a780bd7502022-12-29T17:06:15ZengUniversità degli Studi di TorinoEuropean Journal of Islamic Finance2421-21722022-12-019310.13135/2421-2172/6816A Critical Shariah and Maqasid Appraisal of Islamic Credit CardsAbdulazeem Abozaid, Dr.0Saqib Hafiz Khateeb1College of Islamic Studies, Hamad Bin Khalifa University, Doha, QatarCollege of Islamic Studies, Hamad Bin Khalifa University, Doha, QatarIslamic banks and financial institutions have recently started issuing Islamic credit cards as substitutes for conventional credit cards after the Shariah scholars, due to the Riba involved, unanimously deemed the traditional credit cards unlawful. However, Islamic credit cards have different structures; some have been structured based on Eina or Tawarruq sales even though these two types of deals were ruled unlawful by the Fiqh academies. However, the most common structure of Islamic credit cards is the Ijarah model, where the card issuer is deemed a lessor of the services embedded in the credit card, apart from the provision of credit, against fixed periodical fees. Although this structure seems acceptable from a Shariah point of view and has been endorsed by the Shariah boards of the issuing Islamic banks, it involves some issues that must be carefully addressed. The paper elaborates on these critical issues and analyses the different contractual relationships involved in these cards to outline the prospectus of a genuine Shariah-compliant credit card. https://www.ojs.unito.it/index.php/EJIF/article/view/6816Credit CardIslamic Credit CardIslamic FinanceIslamic BankingIslamic Product Development |
| spellingShingle | Abdulazeem Abozaid, Dr. Saqib Hafiz Khateeb A Critical Shariah and Maqasid Appraisal of Islamic Credit Cards European Journal of Islamic Finance Credit Card Islamic Credit Card Islamic Finance Islamic Banking Islamic Product Development |
| title | A Critical Shariah and Maqasid Appraisal of Islamic Credit Cards |
| title_full | A Critical Shariah and Maqasid Appraisal of Islamic Credit Cards |
| title_fullStr | A Critical Shariah and Maqasid Appraisal of Islamic Credit Cards |
| title_full_unstemmed | A Critical Shariah and Maqasid Appraisal of Islamic Credit Cards |
| title_short | A Critical Shariah and Maqasid Appraisal of Islamic Credit Cards |
| title_sort | critical shariah and maqasid appraisal of islamic credit cards |
| topic | Credit Card Islamic Credit Card Islamic Finance Islamic Banking Islamic Product Development |
| url | https://www.ojs.unito.it/index.php/EJIF/article/view/6816 |
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