The development of technology has enabled banks to issue products that satisfy the need of its clients. Credit card is one of the latest banking gadgets. It facilitates people to make spot transaction without carrying cash as well as on-line transaction since the credit card issuer pays the proceeds of the transaction on behalf of the buyer. However, for Muslim customers, the usage of conventional credit card which involves practice of riba when there is late payment has brought a conflict with their belief. Therefore, there is a need for a payment instrument which has function as credit card but comply with the Islamic principles. This study will elaborate the practice of Islamic credit cards issued by Bank Danamon Indonesia and Bank Islam Malaysia, which are the first Islamic credit card issuer in both countries. The paper discusses the issue from both economic and shariah point of views. From the practice, it can be seen that the contracts used in Malaysian BI Card are relatively more lenient than which used in Indonesian Dirham Card.
The Practice of Islamic Credit Cards: A Comparative Look between Bank Danamon Indonesia’s Dirham Card and Bank Islam Malaysia’s BI Card1
Tanggal Publikasi: 6 Jan 2023
Islamic credit card, Dirham Card, Bank Islam Card