SYARIAH CREDIT CARD

Arranged by:

Lucky Suryo Wicaksono (08410204)

International Program

University of Islam Indonesia

2010
 A. DEFINITION OF SYARIAH CREDIT CARD

Acoording to al-Majma’ al-Fiqhiy al Islamiy

Credit Cards or “bithaqah I’timan” is a kind of card issued to users as a system of

payment. It allows its holder to buy goods and services based on the holder's promise to pay
for these goods and services. The issuer of the card creates a revolving account and grants
aline 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.1

Based on Fatwa which issued by DSN-MUI No.54/DSN-MUI/X/2006, Islamic Credit

Card is a card that functions like a Credit Card that the legal relationship (based on existing
systems ) between the parties based on Shariah principles with the provisions contained in
this fatwa. The Issuance of Islamic Credit Card based on certain considerations, as follows:

1. Along with the development of the world today, the Islamic banking activities also
increased. Therefore, Islamic Banking is also required to provide service facilities in
transaction for all its customers, while it is in accordance with Islamic guidelines that exist.

2. In line with the conditions, where an existing credit card system is still using the
principle of interest, which is not in accordance with Islamic Shari'a principle.

3. The presence of Islamic Credit Cards becomes the best alternative, which can be used by
Indonesian peoples who are predominantly Muslim as a substitute for conventional credit
card which based on interest.

B. CHARACTERISTIC OF CREDIT CARD SYARIAH

In fatwa of DSN-MUI stated that Syaria Credit card is allowed, with provisions as
stipulated in the fatwa. The provisions used in Sharia Card are2;

a. Kafalah : in this case the Card Issuer is the guarantor (kafil) for Cardholder toward
Merchant for all obligations to pay (dayn) arising from transactions between the Cardholder
with the Merchant. Based on the present of Kafalah, the card issuer may receive a fee (ujrah
kafalah).
1 http://ahlussunnah.info/blog/2010/07/08/artikel-ke-75-kartu-kredit/

2 http://www.dakwatuna.com/2009/hukum-kartu-kredit-syariah/
b.Qardh; in this case the Card Issuer is lenders (muqridh) to the Cardholder (muqtaridh)
through cash withdrawals from a bank or a bank ATM Card Issuer.

c. Ijarah; in this case the Card Issuer is provider of payment services to the Cardholder. Based
on the present of Ijarah, the membership fee charged to Cardholder.

DSN-MUI issued fatwa No. 42/DSN-MUI/V/2004 about syaria charge card which
allow the utility of sredit card with the some requirement, as follows:

a. No cause of usury or riba

b. Not used for transactions that are not in accordance with the sharia,
c. Not encourage excessive spending (israf), by other ways by determined the maximum of
expenditure,
d. The main card holder must have the financial ability to repay on time,
e. Do not provide facilities that are contrary to sharia principle.

C. PARTIES IN CREDIT CARD

In the credit card activity both Islamic and conventional, there are several subjects
involved, namely3:
1. Issuer is the Company or the Bank who issued Credit cards like VISA, Master Card etc.
2. Card Holder is Individuals or companies that have a Credit Card, after submit request to
the publisher.
3. Merchant is Stores, Restaurants, and Hotels etc who are willing to accept the payment by
Credit Card.
4. Acquirer is an institution that manages the use of credit cards, especially in billing and
payment between the Issuer with the Merchant

D. DIFFERENCE BETWEEN CONVENTIONAL AND SYARIAH CREDIT CARD

The fundamental different between credit card Syaria with conventional namely:
Credit Card Conventional put the interest between 2-4% per month as a form of taking
advantage. Therefore, in 1 year alone the value of the interest can reach values initial
3 Wahab Ibrahim, Dr. Abdul, Banking Cards Syari’ah Kartu Kredit dan Debit Dalam Perspektif Fiqh .page. 98
transaction. While in the syaria credit card, there are certain akad that are not exist in the
conventional system, namely: ijara, kafalah and Qard.

Therefore, to differenciate Islamic credit card with conventional credit card, which
prevents the existence of usury/riba, the mechanism of Islamic credit cards there are 3
provision, as follows :

1. Goodwill investment. The users have to deposit the goodwillinvestment in the amout of
10 % rom the limit. This is aimed to prevent the userd of credit cards are not arbitrary.

2. The opening accounts at the Bank that issued credit cards Sharia.

3. The Imposition of fines. Where the fine will be donated to BAZIS and not the the bank's
right.

E. THE LEGALITY OF SYARIAH CREDIT CARD

In principle, Islamic credit cards are allowed for in practice as long as not dealing
with usury system that is enforcing the provisions of interest if the repayment of debt to the
guarantor of past-due payments. In addition, provisions had kafalah fees should not be too
expensive not exceeds the limits of rational, so thats not burden the user. In order to keep
the purpose of kafalah , namely in the form of guarantees of debt relief services to
merchants, sellers of goods or services who accept certain credit cards . 4

Therefore, Muslims allowed to use the services of a credit card that does not use
rate system. But when forced to oblige the needs or demands using conventional credit
cards that use the provisions of interest, then for ease of transaction is allowed to use any
credit card with full confidence in the financial and economic conditions can afford the
debt and a commitment to pay it off on time before the due date to avoid paying debts.
This is based on the principles of fiqh 'Saddudz Dzari'ah', thats means the attitudes and
preventive measures to prevent the acts of sin.5

4 DR. Wahbah az-Zuhaili, al-Fiqh al-Islami wa Adillatuhu, vol. V/130-161

5 http://www.dakwatuna.com/2009/hukum-kartu-kredit-syariah/
 REFFERENCES

Wahab Ibrahim, Dr. Abdul, Banking Cards Syari’ah Kartu Kredit dan Debit Dalam
Perspektif Fiqh, Jakarta : PT. Raja Grafindo Persada, 2006.

Ad Duwaisy, Ahmad bin Abdurrazaq, Fatwa-fatwa Jual Beli, Pustaka Imam Asy Syafi’i,
2004.
http://alihozi77.blogspot.com/2008/06/kartu-kredit-syariah-manfaat-atau.html last
viewed on 25 /11/2010.
http://tomygnt.wordpress.com/2010/09/30/kartu-kredit-credit-card-oleh-prof-dr-shalah-
ash-shawi-dan-prof-dr-abdullah-al-mushlih/ last viewed on 25 /11/2010.
http://ahlussunnah.info/blog/2010/07/08/artikel-ke-75-kartu-kredit/ last viewed on 25 /
11/2010.