In our daily life we cannot be separated from the ease of payment such as using plastic cards. If the previous article has been discussed about debit
card in Islam, article this week and next week is about charge card and credit card.
There are several views or laws of plastic cards according to the fiqh scholars,
Credit Contract law (al-qardh)
In the book of Al-Mughni li Ibni Qudamah stated that if a person transferring the debt (in this case the customer) to others who have no debt (in this case the bank), could not be said hiwalah (transferring the debt to others). Credit card if it is applied under the law credit agreement (al-qardh) is not quite right. Because the accounts payable or debt only involves two parties namely the credit giver/ account receivable (mu’aridh) and the credit receiver (mustaqridh). If the illustration is applied to a credit card, then there is a link between customers –in this case is loan recipients (mustaqridh), with bank lenders (muqridh) and a third party –merchant (tajir).
Transfer of Receivables (hiwalah)
If we apply transfer of receivables (hiwalah) for credit card practice, the process will be, first the transferor (muhil) which in this case is the customer. Second is the party that responsible for paying the debt of muhil called Muhal ‘alaih that is the bank. While the third party is the party who is willing to extend credit to customers (muhil) and ask for credit to the Muhal ‘alaih called muhtal, and in this case is the merchant.
There is some doubt in terms of debt between transfers of receivables (hiwalah) and the credit card operation. In the credit card practice there is only one debt i.e. customer debt to the bank whereas in practice of transfer of receivable there are two debts are debt (payable) Muhal ‘alaiih to muhil and debt muhil to Muhal’ alaih.
Therefore it is not appropriate if operational credit card practice is categorized as transfer of receivables (hiwalah).
Guarantees law (Adh-dhaman)
If we apply guarantees law in credit card operations will be as follows:
There are three parties involved: the bank as a guarantor (Adh-dhamin), customer as the party who is guaranteed (madhmun ‘anhu), and the merchant who are willing to give credit based on guarantee proposed by dhamin (madhmun lahu).
In credit card operations, credit which is used by the customer is in unspecified amount. This is according to ma lam dhamanu yajib meaning permissible to guarantee something that is not yet specified. This is allowed by the four scholars.
There is an agreement between banks and customers in the use of charge card (to be paid on the due date agreed) and credit card holders to use the credit until predetermined limit. This is in line with the practice of guarantee stated in al-Mughni uhtaj li al-Khatib al-Syarbini.
Among the terms that is proposed by bank to its customers is a bank has full authority to freeze the card without agreement from customers. This does not oppose to Islamic law, even it is according to warranty issues i.e. ruju fi al dhaman and it is allowed.
Next part is discussing about the questionable issues of credit card.
Source: Prof Dr Husein Syahatah (2004) Islamic Bank Products; theory and practice, 2nd ed., Center for Islamic Economics (PAKEIS), ICMI Orsat Kairo
