2021_Ujrah Based Credit Card in Malaysia: A Shariah Analysis
| Format: | General Document |
|---|
| _version_ | 1860798195159793664 |
|---|---|
| building | INTELEK Repository |
| collection | Online Access |
| collectionurl | https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection3 |
| copyright | Copyright©PWB2025 |
| country | Malaysia |
| date | 2022-02-06 |
| format | General Document |
| id | 16374 |
| institution | UniSZA |
| originalfilename | UJRAH BASED CREDIT CARD IN MALAYSIA_ A SHARIAH ANALYSIS (MASTER_2021).pdf |
| person | Abubakar Balarabe |
| recordtype | oai_dc |
| resourceurl | https://intelek.unisza.edu.my/intelek/pages/view.php?ref=16374 |
| sourcemedia | Server storage Scanned document |
| spelling | 16374 https://intelek.unisza.edu.my/intelek/pages/view.php?ref=16374 https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection3 General Document Malaysia Library Staff (Top Management) Library Staff (Management) Library Staff (Support) Terengganu Faculty of Business and Management English application/pdf 1.5 Server storage Scanned document Universiti Sultan Zainal Abidin UniSZA Private Access Universiti Sultan Zainal Abidin SAMBox 2.3.4; modified using iTextSharp™ 5.5.10 ©2000-2016 iText Group NV (AGPL-version) Copyright©PWB2025 2022-02-06 Dissertations, Academic 163 UJRAH BASED CREDIT CARD IN MALAYSIA_ A SHARIAH ANALYSIS (MASTER_2021).pdf Abubakar Balarabe Ujrah Credit Card In Malaysia Shariah Analysis Islamic credit cards – Malaysia Ujrah (Islamic finance) Shariah compliance – Banking Islamic banking – Malaysia Financial products – Islamic perspective 2021_Ujrah Based Credit Card in Malaysia: A Shariah Analysis This research considers the practice of Ujrah in Islamic credit cards by CIMB Islamic Bank in Malaysia. Ujrah is a service charge in which the bank charges a customer whenever they use a credit card. The customer is charged a fixed service fee for each transaction by launching this service. Regardless of the amount, a fixed fee is charged for using the card. The customer is also required to pay the fee on time. The bank provides a payment apparatus for purchases via a card issued to the customer. Ujrah, on its own, is acceptable in Shariah, but it has an issue when it is made conditional and integrated with ibra (rebate). Consequently, integrating Ujrah and ibra’ constitutes problems in the practice of Ujrah according to the Islamic banking system. Likewise, a group of jurists has an unfavorable opinion on rebate when they argue that it is a hilah (legal trick) or resembles the idea of riba. Hence, this study aims at determining the Shariah status of Ujrah and related Shariah principles for Islamic credit card operation. The study examines the existing practice of Islamic credit cards based on Ujrah by Malaysian Islamic banks and the permissibility of the Ujrah-based Islamic credit card in Shariah. The study adopts a qualitative method to achieve the objectives of the study, and a descriptive analysis was employed. The data were collected using semi-structured interviews as primary data, while manuscript reviews and library research formed the secondary data. For the interviews, seven participants were selected. Among them, six were Shariah scholars and one practitioner from CIMB Islamic Bank. A thematic approach was used for data analysis. This study’s findings show that Ujrah is permissible among classical and modern jurists and is accepted as a recommended product used in Islamic credit cards. Most regulatory bodies of Islamic financial institutions accept Islamic credit cards based on Ujrah, such as the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and the Shariah Advisory Council (SAC) of Bank Negara Malaysia (BNM). An Islamic credit card structured based on Ujrah is allowed in Shariah to pay for services and benefits. The finding reveals that ibra (rebate) is permitted by AAOIFI and Bank Negara Malaysia to uphold justice for customers and community development. Islamic financial institutions implement the concept of rebate in Islamic credit card not for hilah (legal trick) but for the benefit of the people. Similarly, the study shows that Ujrah is not linked to a rebate in a single contract, as each works on its own part. Ujrah-based Islamic credit cards can be an alternative to conventional financing to support Islamic financial institutions. Ujrah also helps banks charge services to avoid usury, violating Shariah principles. It can also serve as a guide to enhance community and support national economic growth by preventing riba. As noted earlier, the issue of Islamic credit cards has received considerable academic attention. This study differs from previous studies because it gives an essential view of Ujrah contract in Islamic credit cards from the Shariah perspective. This study offers practical and theoretical contributions to the federal government and Islamic financial institutions. The study recommends that the government provide guidelines on the practice of Ujrah in Islamic credit cards through Bank Negara Malaysia (BNM). The study is limited because it focuses on Ujrah, ibra’ and qard in Malaysian Islamic credit cards and does not discuss other contracts related to Islamic credit cards such as wadiah, wa’ad and kafalah. Therefore, the results can be applied in other countries. Thesis |
| spellingShingle | 2021_Ujrah Based Credit Card in Malaysia: A Shariah Analysis |
| state | Terengganu |
| subject | Dissertations, Academic Islamic credit cards – Malaysia Ujrah (Islamic finance) Shariah compliance – Banking Islamic banking – Malaysia Financial products – Islamic perspective |
| summary | This research considers the practice of Ujrah in Islamic credit cards by CIMB Islamic Bank in Malaysia. Ujrah is a service charge in which the bank charges a customer whenever they use a credit card. The customer is charged a fixed service fee for each transaction by launching this service. Regardless of the amount, a fixed fee is charged for using the card. The customer is also required to pay the fee on time. The bank provides a payment apparatus for purchases via a card issued to the customer. Ujrah, on its own, is acceptable in Shariah, but it has an issue when it is made conditional and integrated with ibra (rebate). Consequently, integrating Ujrah and ibra’ constitutes problems in the practice of Ujrah according to the Islamic banking system. Likewise, a group of jurists has an unfavorable opinion on rebate when they argue that it is a hilah (legal trick) or resembles the idea of riba. Hence, this study aims at determining the Shariah status of Ujrah and related Shariah principles for Islamic credit card operation. The study examines the existing practice of Islamic credit cards based on Ujrah by Malaysian Islamic banks and the permissibility of the Ujrah-based Islamic credit card in Shariah. The study adopts a qualitative method to achieve the objectives of the study, and a descriptive analysis was employed. The data were collected using semi-structured interviews as primary data, while manuscript reviews and library research formed the secondary data. For the interviews, seven participants were selected. Among them, six were Shariah scholars and one practitioner from CIMB Islamic Bank. A thematic approach was used for data analysis. This study’s findings show that Ujrah is permissible among classical and modern jurists and is accepted as a recommended product used in Islamic credit cards. Most regulatory bodies of Islamic financial institutions accept Islamic credit cards based on Ujrah, such as the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and the Shariah Advisory Council (SAC) of Bank Negara Malaysia (BNM). An Islamic credit card structured based on Ujrah is allowed in Shariah to pay for services and benefits. The finding reveals that ibra (rebate) is permitted by AAOIFI and Bank Negara Malaysia to uphold justice for customers and community development. Islamic financial institutions implement the concept of rebate in Islamic credit card not for hilah (legal trick) but for the benefit of the people. Similarly, the study shows that Ujrah is not linked to a rebate in a single contract, as each works on its own part. Ujrah-based Islamic credit cards can be an alternative to conventional financing to support Islamic financial institutions. Ujrah also helps banks charge services to avoid usury, violating Shariah principles. It can also serve as a guide to enhance community and support national economic growth by preventing riba. As noted earlier, the issue of Islamic credit cards has received considerable academic attention. This study differs from previous studies because it gives an essential view of Ujrah contract in Islamic credit cards from the Shariah perspective. This study offers practical and theoretical contributions to the federal government and Islamic financial institutions. The study recommends that the government provide guidelines on the practice of Ujrah in Islamic credit cards through Bank Negara Malaysia (BNM). The study is limited because it focuses on Ujrah, ibra’ and qard in Malaysian Islamic credit cards and does not discuss other contracts related to Islamic credit cards such as wadiah, wa’ad and kafalah. Therefore, the results can be applied in other countries. |
| title | 2021_Ujrah Based Credit Card in Malaysia: A Shariah Analysis |
| title_full | 2021_Ujrah Based Credit Card in Malaysia: A Shariah Analysis |
| title_fullStr | 2021_Ujrah Based Credit Card in Malaysia: A Shariah Analysis |
| title_full_unstemmed | 2021_Ujrah Based Credit Card in Malaysia: A Shariah Analysis |
| title_short | 2021_Ujrah Based Credit Card in Malaysia: A Shariah Analysis |
| title_sort | 2021_ujrah based credit card in malaysia: a shariah analysis |