Syariah Compliance Case Study

The syariah compliance islamic credit card is known as free from riba’ and gharar. The free from riba is as there is no interest rate on the credit card compare to how the conventional bank handle their credit card. There is a condition where the card holder have to abide all the terms and conditions that based on syariah compliance.

The Islamic credit card concept is based on Ujrah concept which is refer to payment of a service fee in exchange for services rendered. Ujrah refers to a fee that is permissible in Islam based on sources from the verse of al-Quran and hadith as follows: Allah SWT says: “... the best of men for you to hire is the strong, the trustworthy.” A hadith of Rasulullah SAW provides: “Pay the worker his wages before his

Also known as easy to revise most terms, for example the most common things is it can be increases in credit limits but all this things based on the minimum annual income payment of the Cardholder. A different fee structure and mechanism instead of the fee is charged based on transactions, the fee is charged based on the RHB Bank providing the customer with the service to purchase goods, via the Islamic Credit Card. Based on Islamic Credit Card the profit calculation is different from the Conventional Credit Card, for the monthly profit Islamic Credit Card is calculated on monthly basis based on outstanding due or total transaction made for that particular month. The profit is not compounded as compared to conventional card where the interest is compounded. The

Merchant means establishments or merchants who accept the credit card as a mode of payment for goods and services and such payment shall be charged to the relevant Card Account. Annual fee as prescribed by RHB Islamic Bank for the relevant cards issued or renewed which fee shall be determined or varied by RHB Islamic Bank from time to time as approved by its Group Shariah Committee. The annual fee shall not be refundable. The amount of annual fee shall be fixed. Cash Advance fees at the rate of 5% (or any other rate as determined by RHB Islamic Bank from time to time at its discretion) charged on the cash amount withdrawn or a minimum of RM15.90 (or any other amount as determined by RHB Islamic Bank from time to time as its discretion) whichever is higher, with effect from 1 Mar 2010. The Cash Advance fee shall be debited to the Card Account at the date of the Cash Advance. In addition to the Cash Advance fee, an Actual management Fee will be charged at the rate of 1.5% per month (or such other amount or rate as may be determined by RHB Islamic Bank from time to time in its discretion) calculated on a daily basis from date the Cash Advance is made until full payment is received and credited in the Card Account. This