Credit Cards in Non-Interest Banking

The Rapid expansion of markets and the increasing developments in the felid of electronics and telecommunications have paved the way for innovations of new and novel banking instruments. One of the instruments that have grown substantially in recent years is the banking credit cards. The quickness of use, facility and intrestes of use of these cards have encouraged the banks, financial institutes, service and business centers and customers to welcome the application of these cards.These cards, though of different nature, may be categorized in three major groups:Cash cards, non-interest debt cards, and interest based loan cards. Each of the above groups may be classified as cards for cash, cards for purchase of goods and services, and multi-purpose cards. Most of these cards are designed in economies that recognize the interest based transactions and debts. thus, they are involved in usury and interest. Therefore, to comply with Islamic Jurisprudence they require certain modifications. The author investigates different types of such cards from a jurisprudential perspective and seeks to find a criterion to determine and distinguish the legal cards from illegal ones