SS 2 – Debit Card, Charge Card and Credit Card

The purpose of the standard on debit card, charge card and credit card is to explain their types and characteristics, and to lay down the Shari’ah principles for dealing with the three types of card by both Islamic financial Institutions and their customers who hold their cards and use them. The standard also explains the Shari’ah rulings on the use of the cards in various circumstances. The word (Institution/Institutions) is used here to refer, in short, to Islamic financial institutions including Islamic Banks.

Scope of the Standard

The standard covers debit cards, charge cards and credit cards that are issued by Institutions to their customers to enable the latter, by using the cards, either to withdraw cash from their accounts or to obtain credit or to pay for goods or services purchased. These cards include the following types: • • Debit card

Debit card

• • Charge card

Charge card

• • Credit card

Credit card

2. Characteristics of Different Types of Card While some of the characteristics are common to more than one type of card, some are specific to a particular type of card.