Finance Frame

Recent development of technology has enabled Islamic banks to adopt new ways of offering the necessary products that could satisfy the needs of its clients. The addition that Islamic banks have undertaken includes the issuance and the development of Islamic credit cards.

Islamic Credit Card are able to facilitate its users to make different transactions without the need to carry cash. From the first appearance of the credit card concept into the world economy, this method has proven to be extremely effective. Thus not only conventional banks are currently using the credit card strategies. The interest of Islamic banks for the credit card product has increased recently which have successfully brought the service to Islamic finances at the benefit of the Muslim society.

The general idea of credit cards and how it works is that the card issuer pays the proceeds of the transaction on behalf of the buyer and this enables the user to make purchases online or in stores by using the funds on the card. Customers can benefit from a grace period in order to pay the credit card loan free from any charges for a late payment.

Islamic Credit Card must meet certain criteria as part of the Islamic principles. It is about meeting the Shariah regulations on lending in the first place which may vary from one bank to another. The existing Islamic credit card services, as well as the newly adopted products, must strictly comply with the Shariah laws which makes them unique and at the same time reliable products. Conventional credit cards were considered as forbidden due to the interest being involved. That is why, when Islamic banks decided to develop its own credit cards, Shariah experts had to make sure that its services are complying with the Islamic laws and does not involve any prohibited activities.

Some Shariah scholars think that it is important that the cash advance withdrawal results in transactions and activities that are not forbidden due to the Islamic regularities. Financial experts suggest that the credit card product is something that people need, however further operations should be improved so that it can purely comply with the Islamic principles which prohibits mainly interest, uncertainty and gambling. They also suggest that the Islamic credit card should be used wisely and not as something that may bring material satisfaction.

The general idea about Islamic finances is easiness and convenience in an environment that does not deviate from the Shariah teaching. Islamic banks have learned to provide different credit card products that target simplicity and comfort while helping the community to achieve a social harmony.

Islamic Bank credit cards are the payment instruments that require the use of international payment schemes for a wide acceptance and development. Islamic credit cards have to offer more facilities that a debit card is not able to offer which mainly includes the situations of a credit card absent environment where the CVV code must be present.

Islamic banks have also developed security features for the cardholders that could allow them to perform safe credit card transactions in a reliable and secure environment. This way, suspicious transactions or unauthorized activities with the credit card can be checked and reported fast and easy. This places an additional interest for the Islamic bank credit card products which makes the segment more and more popular.