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CREDIT CARDS FROM SHAIRIAH PERSPECTIVE
BY
MANAWEE NIRINGJUERAE
G 0914751
COURSE TITLE: ISLAMIC JURISPRUDENCE
Assoc. Prof. Dr.Muhamad Bin Arifin
INTERNATIONAL ISLAMIC UNIVERSITY MALAYSIA
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Contents
INTRODUCTION .................................................................................................................3
Statement of the Problem .......................................................................................................3
Hypothesis .............................................................................................................................3
CHAPTER 1 CONVENTIONAL CREDITCARDS ..............................................................4
1.1 Definition .........................................................................................................................4
1.2 Importance of Credit Cards in the Contemporary Society..................................................5
1.3 How Payment System Work? ...........................................................................................6
1.4 Fatwa’s – What Scholars Say? ..........................................................................................8
CHAPTER 2 ISLAMIC CREDIT CARD IN MALAYSIA .................................................. 10
2.1 Background ................................................................................................................... 10
2.2 What does it mean by Islamic credit cards? .................................................................... 10
2.3 Details of Bank Islam Card ............................................................................................ 11
2.4 The Figure of Bay Inah in Bank Islam ............................................................................ 13
2.5 Bai’inah according to Muslim scholar............................................................................ 16
CONCLUSION.................................................................................................................... 20
Reference ............................................................................................................................. 21
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INTRODUCTION
The development of technology has enabled bank to issue product that satisfy
the need of clients. Credit card is one of the latest banking gadgets. It facilitates
people to make transaction without carrying cash since the credit card issuer pays the
proceeds of the transaction on behalf of the buyer. Most goods and services can be
bought either online or at the usual “brick and mortar” sales outlets by using this card.
This convenience has led the widespread of credit card. Therefore, not only
conventional banks interested to issue credit card, Islamic banks which notably have
to comply with the Islamic principle also start to come out with this product.
Statement of the Problem
Credit cards are very important in the contemporary society. The need to use them
has been a necessity in many circumstances although the safety considerations
sometimes have to be compromised. The issue is that whether Islamic law allows the
usage of credit cards. If their usages are allowed, another issue is whether they are
considered as Islamic law compliant. To answer there issue, Muslim Jurist needs to
address them accordingly.
Hypothesis
The best way to address the issue of credit cards is to adopt the principle pertaining to
contracts of credit (aqd-qard) guarantee (aqd-kafalah) and agency (aqd-wakalah) in
Islamic law as the underlying contract for credit cards.
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CHAPTER 1 CONVENTIONAL CREDITCARDS
1.1 Definition
Credit cards are not new. They are some equivalents of them, have existed
since the beginning of last century. The use credit cards originated in the United
States in the 1920s according to some sources.1 As per Tony Dury forms of credit
cards have existed even before 1920; some large department stores in the United
States began to issue “credit cards”.2
A credit card is part of a system of payments named after the small plastic card
issued to users of the system. It is a card entitling its holder to buy goods and services
on the holder’s promise to pay for these goods and services. The issues of the card
grants a line of credit to the consumer (or the user) from which the user can borrow
money for payment to a merchant or as a cash advance to the user.3
The credit card, which is known as ‘plastic money’, is essential mode of
payments in today’s society. People own credit card for various reasons such as to
obtain credit facility, cash advance, easy payment, charge and prestige. It has become
way of life in the society nowadays that different types of credit card such as Master
and Visa and category gold and platinum, represent the wealth status of a person.
Undoubtedly the role of credit card is more than that. It is important role in e-
commerce transaction is undisputable.
1 Peter E. Sayer, Credit Cards and The Law :An Introduction, Fourmat Publishing, London, 1988, p.1.
2 Tony Drury, Charles W Ferries, Credit Cards, Butterworth, London,1984, p.19.
3 See: credit cards and debit card <www.wikipedia.com/creditcard>
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However, how dose Islam accept the role of credit card as a medium of
payment? What are the underlying principle required by Shari’ah in the functionality
of credit card? What would be the possible legal issues and how Islam addresses these
issues? What are the differentiation factors in the Islamic credit card?
1.2 Importance of Credit Cards in the Contemporary Society
Credit cards have become essential means of exchange in the economy
because they provide consumers and merchants considerable advantages over cash
and cheques. There is a lot of security risk involved in carrying cash. Cash is easier
to steal and harder to trace once lost or stolen. Perhaps this is why most people do not
like to carry to much cash of it on them. Cheques have their own disadvantages. To
begin with, chequebooks are in convenient to carry. They are often difficult to use
outside one’s local community because of the risk of bad cheques.4
Credit cards can offer certain advantages to the holder. Firstly, they provide
easy means of obtaining credit for an interest free credit period from a week to a
mouth. Secondly, credit card can easily be used to withdraw cash over the counter or
from an Automated machine (ATM).5 Furthermore, credit card may also offer the
holder an additional protection such as, in the event of loss, damage or theft of an item
bought by the card holder, he may be indemnified under the insurance.6 And with the
4 David S. Evans, paying with plastic: The digital Revolution in Buying and Borrowing, Cambridge, Massachusetts, London,1999, p.30-31.
5 Pheng, Banking Law, Bangkok,2000, p 232.
6 See http:// www.mtscil.org/skills budget-12.html
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development of high technology and the internet, credit card also allow their holders
to purchase goods from anywhere around the world over the phone or online.
Nevertheless, there are some disadvantages of credit cards, the holder will be
encouraged to spend more money than they need. This is because the most credit
cards do not limit the balance to pay off each month. Although the card holder, only
has say, RM 100.00, he may still be able to spend up to RM500.00 or 1,000.00 on his
credit card. While this may seem like ‘free money’ at the time, the customer will have
to pay it off and the longer he waits the more money
1.3 How Payment System Work?
Visa, Switch and MasterCard all operate four party payment schemes. Any
card transaction made through one of these schemes involves four main participants.
These are:
• The customer, who makes a payment using the card;
• The card issuer who supplies the card to the customer and operates the account from
which payment is made;
• The retailer (or ‘merchant’) who exchanges goods or services for the
customer’s card details and consent to make the payment;
• The merchant acquirer who recruits retailers to the scheme, reimburses the retailer
and obtains funds from the card issuer.7 The merchant acquirer often has an existing
customer relationship with the merchant, but need not do so. A payment will involve
7 Adil Manzoor Bakhshi, Developing a financial model for Islamic credit card for the UK. Master
dissertation, University of Salford 2006, p.5
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both a flow of assets - money and goods - and also a flow of information about
transactions that are taking place. These are shown on the diagram using solid and
dashed lines respectively.8
Figure: 1 (Cruick shank, 2000) Main parties involved in credit cards system.
The transaction starts with a customer deciding to buy some goods from a
retailer at a given price. The customer gives his card details to the retailer and
confirms his identity, for example with a signature. For some transactions the retailer
may be required to seek authorization from the card issuer, for example to check that
the card is not stolen. The retailer then sends transaction details to the merchant
acquirer. Transaction details may either be sent in a batch at the end of the trading day
or online. The acquirer in turn forwards transaction and cardholder details to the
relevant card issuers– usually through a telecoms network under the control of the
scheme. The merchant acquirer pays the retailer the retail price less a fee, known as a
merchant service charge (or MSC). The issuer in turn pays the merchant acquirer the
8 Adil Manzoor Bakhshi, “Developing a financial model for Islamic credit card for the UK”, Dissertation submitted in partial fulfillment for the degree of MSc in International Banking & Finance, University of Salford 2006, p.6.
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retail price less a further fee known as an interchange fee. The timing of the payment
from issuer to acquirer is typically determined by the rules of the payment scheme.
The timing of the payment by the merchant acquirer to the retailer is determined by
agreement between these two participants.
The final stage is for the issuer to debit the customer’s account - this might be
a credit card account or a current or savings account, in the case of a debit card. The
issuer will typically provide the customer with transaction details through a regular
statement. The customer will be debited the retail price, plus any fees specified in the
terms of the account.
1.4 Fatwa’s – What Scholars Say?
There are many questions pertaining to credit cards whether or not Muslim can
or cannot use the credit cards. Some Muslim scholar, it is permissible if certain
conditions are met. However, there is a large group which considers conventional
cards are prohibited.
However, there are various areas of interpretation that enable some Muslims to
believe that credit card usage can be done within religious beliefs by paying off the
full outstanding balance every billing month and never rolling over any balance to
next statement period and avoiding cash withdrawals. According to them, by not
carrying any outstanding balance to next billing period and avoiding cash
withdrawals, riba can be avoided and thus, using a card in this way could be halal.
This argument can be supported further by stating that all deeds are by intention and
since the intention is to clear the full balance every time and not withdraw cash, card
is halal.
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Shaykh Ibn ‘Uthaymeen (may Allah have mercy on him) argues that a contract of this
type is not permissible, because it involves riba which is the price of the card, and it
also means committing to pay interest if payment is delayed. (Shaykh, 2002)9
In another fatwa he issued he states that credit card transaction is haram, because the
one who enters into it commits himself to paying riba if he does not pay on time. This
is an invalid commitment, even if he believes or thinks it most likely that he will pay it
before the time is up, because circumstances may change and he may not be able to
pay it off. This is a matter that is in the future, and no one knows what will happen to
him in the future. So dealings of this type are haram. (Shaykh)
9 Ibid, p.20
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CHAPTER 2 ISLAMIC CREDIT CARD IN MALAYSIA
2.1 Background
On 23rd of July 2003, Bank Islam Malaysia Bhd has issued a shariah
compliant credit card named Bank Islam Card (BIC). This first Islamic credit card in
Malaysian market was issued to response the need of its Muslim clients. It is also the
first credit card in Southeast Asia adopting the Europay-Mastercard-Visa (EMV)
Smart Card with the “chip” technology. The card has all features as payment
instrument, however, profit rate is only charged to clients who fail to pay back the
minimum repayment within the 20 days grace period.10.
Malaysia is considered as one of the development of the Islamic banking and
finance system and has continued a lead position in the field. In this chapter we are
going to study how Islamic bank in Malaysia practice credit cards as well as the point
of view of Islamic scholars pertaining to this issue.
2.2 What does it mean by Islamic credit cards?
Massey defined Islamic credit card as a payment instrument that meet with at
least three criteria of Islamic principles. Firstly, the card must meet the shariah
requirements on lending, which vary from region to region. In general, it must avoid
the three essential prohibitions in Islamic finance, which are riba, gharar and maysir.
Riba, as applied in the interest concept, is clearly proscribed in the Holy Qur’an and
the Hadith of Prophet Muhammad peace be on him. Therefore, an Islamic credit card
is not allowed to charge any interest to payments even if the user is late in paying.
Gharar, or uncertainty, in the practice of Islamic credit card should be avoided by
10 Ilham Reza Ferdian, Miranti Kartika Dewi, Faried Kurnia Rahman, The Practice of Islamic Credit
Cards: A Comparative Look between Bank Danamon Indonesia’s Dirham Card and Bank IslamMalaysia’s BI Card, No date status.
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excluding a charging scheme where the monthly repayment or service charges are
variable based on a number of factors. Maysir or gambling is also prohibited. Thus,
apart from preventing the card holder to access sites such as online gambling, Islamic
cards need some other form of insurance cover. Secondly, an Islamic credit card must
have certainty to be accepted widely. It has to use international payment schemes,
such as MasterCard or Visa. Besides that, the card should provide facilities that are
not available on debit cards such as CVV numbers for “card not present” transactions
and hold amounts. Furthermore, the merchant charges and issuer’s fees should not be
withheld. Thirdly, an Islamic credit card should not encourage behavior that is
considered haram. This includes all manner of forbidden behaviors and transactions
of an inappropriate nature.11
To look forward on the application of Islamic credit card, this paper will
discuss the practice of Islamic credit cards in Malaysia, by taking a closer look on BI
Card which is issued by Bank Islam Malaysia Bhd.
2.3 Details of Bank Islam Card
The holders of the card are only permitted carry out halal transactions, which
exclude transactions related with six categories that don’t meet shariah requirements.
These categories are bars, discos, night clubs, purchase of beers, escort and massage
services and gambling. Operation of BIC involves three aqad (contract), namely Bay
al inah,Wadiah, and Qard al hasan.
Bay al inah consist of two agreements. In the first agreement the customer
buys merchandise from the bank at a stipulated price. Whereas, the bank buys back
11 James Massey, What is so special about Islamic credit cards? ,MONEY works , September 2007
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the merchandise from the client at a lower price. The bank’s profit from this
transaction is derived from the difference of the two prices. The profit rate levied by
Islamic bank is known in advance.
Furthermore, the cash proceeds of the second agreement are deposited into the
wadiah account of the customer. Wadiah is a contract of safekeeping where the
custodian is not allowed to use or benefit from the asset. However, if the asset is
destroyed or damaged he is not held liable unless proven negligent. The wadiah
account is created and maintained by the bank. Then, the customer can use his or her
card to purchase goods and services same as the conventional credit card. The only
difference is that BIC card is backed by cash held in the wadiah account.12
The last contract used by Bank Islam in the operation of BIC is qard al hasan.
The bank enables the customer to withdraw more than the available balance in his
wadiah account. No financial charge is levied on that extra amount used. However,
the client is required to settle it in a specific time later.
Moreover, for BIC the profit is calculated monthly and it is based on the sum
of transaction made during that particular month, the profit is not compounded unlike
conventional bank and the total profit cannot be more than the profit stated in the
contract of bay al inah. However, for conventional credit card the interest rate
imposed is undetermined.
Similarly, the fee charged for withdrawal service is not exorbitant as compared
to conventional bank because when a client withdraws RM 1,000 or below, a fee of
RM 12 is charged. On the other hand, in the case if conventional credit card, a fee of
12 Obaidullah, M 2005, Islamic Financial Services, Jeddah, King Abdulaziz University, 5 February 2008, <http://islamic-finance-net/ifs/ifstitle.html>
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3% or RM 50 is charged for every withdrawal.13
2.4 The Figure of Bay Inah in Bank Islam
First of all, bay al’inah as the underlying contract consists of two separate
contracts, the property sale agreement and the property purchase agreement, which are
executed separately with a difference in both selling price. The transaction of the said
contract works in the following fashion:
Step 1: Bank sells the its asset to the customer (hereinafter called card holder) on a
deferred repayment basis. This transaction affects the debt payable by the customer to
the bank.
13 Ilham Reza Ferdian, Miranti Kartika Dewi, Faried Kurnia Rahman, The Practice of Islamic Credit
Cards: A Comparative Look between Bank Danamon Indonesia’s Dirham Card and Bank IslamMalaysia’s BI Card, No date status.
14
Step 2: Bank buys the same asset from the card holder on cash basis at a lower price
than the price it sold under step 1.
Step 3: The bank disburses the amount of cash proceeds from the “buy back”
transaction into the card holder’s wadi’ah marginal account.
Step 4: The bank creates an Islamic credit card account for the card holder.
Step 5: The credit card is issued to the customer to utilize the balance available in the
wadi’ah marginal deposit account
Step 6: The card holder makes a credit purchase from a merchant. In cases where the
card holder makes purchases over the financing limit and exceeds his available
balances, the bank in its jurisdiction, will decide whether or not to give the card holder
qard al hasan on a case-to-case basis. If the bank decides to allow the card holder an
overdraft, he will not be levied with extra charges or fees but will be required to repay
the amount used.
Step 7: The merchant transfers his right to claim the debt to the bank under the
contract of hawalah mutlaqah (absolute transfer to debt).
Step 8: The card holder settles his outstanding balance and that results in his line of
credit being revolved.14
Suppose Aminah intends to obtain BIC card from BIMB. Firstly, she will be
asked to fill up an application form, notifying her annual income to the bank. Based
on Aminah‟ financial circumstances, the bank will offer different types of BIC card.
Premium card (gold or platinum) with large amount of credit will be offered if her
annual income is pretty high. Let us assume that Aminah is qualify to have a gold BIC
card with credit facility up to RM11,000. In granting the said amount to Aminah, the
14 See http://www.bankislam.com.my/product_pgnpempiyck01_e.htm
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bank will execute a bay' al-Inah transaction. BIMB will identify a specific asset, for
example a piece of land which will then be sold to Aminah, say for RM15,000 in
deferred sale. Immediately, the bank will buy back the land from Aminah for
RM11,000 in cash. When the second transaction is executed, Aminah who formerly
came to the bank with empty pocket now will have a substantial amount of cash to
spend with. The bank will disburse the cash (RM11,000) which is the proceeds of the
second agreement into Aminah's BIC wadi‘ah account. Having the money, Aminah
now can use her BIC card for various commercial transactions just similar to the
conventional credit card. She is required to pay back the money she had used from the
account within a given period. Otherwise, the bank will impose additional payment for
the late settlement.
BIMB contends that its additional payment for the late settlement is legitimate
since it is regarded as profit not interest. The profit is referred to the difference
between the sell and the buy back prices (RM15,000 – RM11,00) in the bay' al-Inah
transaction executed earlier. In other words, through the act of selling land to Aminah,
BIMB is actually entitled RM4000 of profit. However, the profit is only claimed on
Aminah when she struggles to pay her debt on time. The maximum additional
payment however is fixed (RM4000 in our example). According to BIMB, the fixed
maximum profit demonstrates BIC card main advantage over its conventional
counterparts. This is because in the conventional credit card system, the interest is
perpetuate as it is charged compounded until cardholders‟ outstanding debts are been
settled.
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2.5 Bai’inah according to Muslim scholar
The main issue here is how does the shari’ah regard such a contract: should the sale
be allowed or disallowed because motive behind the sale is to legalize that which is
illegal or usurious? There are two different opinions on this matter.
First: Shafi’i Opinion
According to Imam Shafi’i, “if a man buys from another goods on debt which
he received it from the seller, there is no harm that the buyer sells it back to the same
seller or to another person either at a lower price or higher one. There is no
relationship between the first sale and the second one.”15 The contract is valid as long
as the condition of the contract is fulfilled. The real intention is left to God there is no
way we can discovered it. The unlawful intention (niyah,qasd) of the parties is
immaterial and it is dose not invalidate their act, unless expressed in the act. For that
Shafi’i takes the example of someone who marries his wife for a short term. This
marriage, however, is valid because others do not know the real intention. Although
the said marriage is reprehensible (makru), it is valid, whereas a temporary marriage
(mutah) is invalid.16 Furthermore, Shafi’i above view is only applicable in the case
where the true intention of the parties is hidden and unknown.
According to al-Imam Nawawi, Bay’al-inah is not of the prohibited sale. It is
to sell a person an item on deferred payment and hand over the item to him. Then the
seller buys it from the same person on the spot with a lower price cash before
receiving the previously agreed upon payment. Likewise, it is permissible to purchase
15 Muhammad Idris al shafi’I, Kitab al-umm, Dar al-kutub al ‘Ilmiyyah, Beirut, 1973, Vol.3, p.95.
16 Ibid, p.74
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an item on cash and later sell it back with an increased price on a deferred basis,
regardless of the fact whether the first seller received the price or not and weather or
not the inah becomes the dominated culture in the country.17
Second: Hanafi’, Maliki and Hanbali Opinion
Hambali and Maliki assert that the contract of inah is not valid. According to them,
the permissibility of the contract is determined by the motive of the parties. In the
case of BIC, the motive of the parties is to get the loan. Hence, invalid. And the sale
is not valid because it constitutes a legal device (hilah) to obtain a loan with interest
which should be averted at all cost according to the Shairi’ah.18 Another Hambali
scholar said that if someone sells his grape to someone else and knew that the buyer
would use it for the purpose of making wine, this contract is void. This is analog of
bay al inah.
Furthermore, nowadays there are documents indicating the objective of the
contract. Since the sale and contract is a cover up to give a loan, then this is
considered as invalid contract.19
The Hanafi view is base on a narration pertaining to Aisha’s disapproval of
Zaid bin Arqam’s practice of bay’ al-inah:
17 Abu Zakariya Yahya bin Sharaf al-Nawawi, Rawdat al-talibin, Dar al-kutub al-Ilmiyyah, Beirut,
142H/2000, vol.3 pp.85-86.
18 Abu al-Walid Muhammad ibn Rushd, Bidayat al-Mujtahid wa Nihayat al Muqtasid, Beirut, vol.2,
p.58. see also al-Zuhayli, al-Fiqh a-Islami wa Adillatuh,pp.3457.
19 Ilham Reza Ferdian, Miranti Kartika Dewi, Faried Kurnia Rahman, The Practice of Islamic Credit
Cards: A Comparative Look between Bank Danamon Indonesia’s Dirham Card and Bank IslamMalaysia’s BI Card, No date status.
18
دخلت وأنا ام ولد زید : وھي ان العالیة بنت ایفع قالت : عائشة رضي اهللا عنھا لما روي من قصة زید بن ارقم مع السیدة اني بعت غالما من زید بن أرقم بثمانمائة درھم : (فقالت أم ولد زید بن أرقم، بن أرقم وامرأتھ على عأشة رضي اهللا عنھا
أبلغي زیدا أنھ قد أبطل ، شریت و بئسما شریتبئسما : فقالت عائشة) أي حالة: (ثم اشتریتھ منھ بستمائة درھم ، الي العطاءوتبایعوا ، ادا ضن الناس بالدینار والدرھم: وقال صلى اهللا علیھ وسلم) جھاده مع رسول اهللا صلى اهللا علیھ وسلم ان لم یتب
.دینھمفال یرفعھ حتى یراجعوا ، أنزل اهللا بھم بالء، وتركوا الجھاد في سبیل اهللا، واتبعوا أدناب البقر، بالعینة
‘Aisha binti Awfa’ said: the wife of Zaid, the mother of his child and I visited Aisha,
then the mother of his child said: “I sold ‘Aisha’s slave to Zaid ibn ‘Arqam in
exchange for 800.00 Dirhams deferred, then I bought him back for 600.00 Dirhams in
cash”, Aisha said: “Woe to what you sold and what you bought, tell Zaid that he has
voided his jihad with the Prophet unless he repents”. ‘The Prophet, may Allah bless
him and grant him peace, said: When people are miserly with their Dinar and
Darhams and siver coins, (comprising the currencies being used at his time), trade in
ina, follow the tail of cows, and disert the striving in the cause of Allah, Allah will
send unto them a suffering that he will never lift until they rediscover their
religion”.20
In bay’ al-‘inah, the object of sale is made to exist only to fulfill the
requirements of contract (‘aqad) as the buyer has no intention to use the object of sale
(mahallul ‘aqdi). Likewise the seller too is interested to conclude the deal as doing so
brings profits to the bank. He can only make a loan with a contractual extra payment.
However, both will not enter into a contract of debt bearing a contractual returns, but
will use the contract of sale (al-bay’) to achieve the same end as any profits made
from sale is deemed permissible (halal) in Islam.
20 Sunan al- Dar Qutni, Kitab al-Bayu’, Hadith no 2983, Dar al Kutub al ilmiyyah, Beirut, 2003
19
Now, some may say the intention of the buyer and seller is not sincere, as there is no
real intention to consume or utilize the object of sale. The object (‘ain or ‘in) holds a
mere fictitious function. This transaction is pursued only to legalize making loan with
interest. At least this is what many Middle-eastern jurists have been saying all along.
Whatever suspicion one has about bay’ al-‘Inah, the Shafi’ school of fiqh still
considered legal and valid contract. The Shafi’ school says the intention or niyyah is
not a significant element in determining the validity of a contract. This is the
viewpoint taken up by the Shari’ah scholars in Bank Negara and the Securities
Commission. However, the niyyah element is a crucial factor in the Hanafi, Hanbali
and Maliki schools.21
In credit card transaction, the doctrine of Bai Al-Inah is used to validate the
transaction. The argument of validity of bai al Inah is debated between Muslim The
doctrine of bai al-Inah or buy back sale is not recognized by some scholars including
the Ulama from the Middle-East. But in Malaysia, the doctrine of Bai Al-Inah is
recognized, and is used as one of the basis to justify the implementation of credit card
under the Shariah discipline.22
In the primary sources there are no clear indications of validity in Bai Al-Inah
transaction. But there is one hadith saying that this type of transaction is not valid
however the authentic of the hadith and the class of the hadith is unknown.23 In the
21 Prof. Saiful Azhar Rosly, Critical issues on Islamic banking and financial markets”, Authorhouse, 2005.www.authorhouse.com Some viewpoints on Bay’ al-‘Inah,
22 Mohd. Ma’sum Billah Islamic Credit Card in Practice, No date status, p.5
23 Ibid, p.6
20
context of bai Al Inah, the use of doctrine Al Masalih Al Mursalah is adopted in order
to justify the using of such transaction in the credit cards. In the new era of
globalization, many financial dealings were not exactly the same to the practice in
time of prophet (peace be upon him) People try to innovate a new thing that can make
life better off. This is not only goods and service innovation but to the financial
products as well. The idea was to ensure a comfortable life, which is also a wish of
Allah(s.w.t.) as evident in the following ayat:
“ Allah (s.w.t.) intends every facility for you; He does not want to put you to
difficulties”24
The used of Masalih Al Mursalah can be applied in the credit card transaction, since
Allah want us to have easiness in the life but off course to be harmonized with the
Quran and Sunnah so it will not deviate from the Shariah teaching.
CONCLUSION
Islamic credit card is issued by the Islamic banks especially to meet the need of
Muslim customers to make transactions without holding any cash on hand. Despite of
It’s function to let those customers to do transaction that in line with Islamic
principles, the Islamic credit card also has invited debates among jurists. Some of
them said that the aqad used in the operation of this card is like another form of
interest which is applied in the conventional credit card. Others argued that Islam
permits the use of a credit card so long it does not involve the element of riba, e.g.
24 Al Quran, surah Al Baqarah 2:185
21
however, In the credit card transaction among the advantages of using it is
convenience to the buyer, security wise, and cost effective are considered to benefits
the user in tern of giving comfortable life. Thus, the principle of Maslahah Al
Mursalah can be applied in the credit card transaction, since Allah want us to have
easiness in life but of course to be harmonized with the Holy Quran and Hadith of
Prophet Muhammad p.b.u.h. so it will not deviate from shariah teaching.
Reference
1. Al Quran, 2. Adil Manzoor Bakhshi, “Developing a financial model for Islamic credit card
for the UK”, Dissertation submitted in partial fulfillment for the degree of MSc in International Banking & Finance, University of Salford 2006
3. Abu Zakariya Yahya bin Sharaf al-Nawawi, Rawdat al-talibin, Dar al-kutub al-Ilmiyyah, Beirut, 142H/2000,
4. Abu al-Walid Muhammad ibn Rushd, Bidayat al-Mujtahid wa Nihayat al Muqtasid, Beirutsee
5. David S. Evans, paying with plastic: The digital Revolution in Buying and Borrowing, Cambrige, Massachusetts, London,1999
6. James Massey, What is so special about Islamic credit cards? ,MONEYworks , September 2007
7. Peter E. Sayer, Credit Cards and The Law :An Introduction, Fourmat Publishing, London, 1988
8. Tony Drury, Charles W Ferries, Credit Cards, Butterworth, London,1984 9. See:www.wikipedia.com/creditcard 10. Sunan al- Dar Qutni, Kitab al-Bayu’, Hadith no 2983, Dar al Kutub al
ilmiyyah, Beirut, 2003 11. See http:// www.mtscil.org/skills budget-12.html 12. See http://www.bankislam.com.my/product_pgnpempiyck01_e.htm 13. Pheng, Banking Law 14. Ilham Reza Ferdian, Miranti Kartika Dewi, Faried Kurnia Rahman, The
Practice of Islamic Credit Cards: A Comparative Look between Bank
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Danamon Indonesia’s Dirham Card and Bank IslamMalaysia’s BI Card, No date status.
15. Obaidullah, M 2005, Islamic Financial Services, Jeddah, King Abdulaziz University, 5 February 2008, <http://islamic-finance-net/ifs/ifstitle.html>
16. Ilham Reza Ferdian, Miranti Kartika Dewi, Faried Kurnia Rahman, The Practice of Islamic Credit Cards: A Comparative Look between Bank Danamon Indonesia’s Dirham Card and Bank
17. Muhammad Idris al=shafi’I, Kitab al-umm, Dar al-kutub al ‘Ilmiyyah, Beirut, 1973,
18. Mohd. Ma’sum Billah Islamic Credit Card in Practice, 19. Prof. Saiful Azhar Rosly, Critical issues on Islamic banking and financial
markets”, Authorhouse, 2005.www.authorhouse.com Some viewpoints on Bay’ al-‘Inah,
20. Ilham Reza Ferdian, Miranti Kartika Dewi, Faried Kurnia Rahman, The Practice of Islamic Credit Cards: A Comparative Look between Bank Danamon Indonesia’s Dirham Card and Bank IslamMalaysia’s BI Card