Ujrah application in Islamic credit card

• Auteur principal: Mirzan, Mohideen Bathusha
• Format: Thèse
• Langue: anglais
• Publié: 2021
• Sujets: BP174 The practice of Islam; HG Finance
• Accès en ligne: https://etd.uum.edu.my/10028/1/s826582_01.pdf

Ujrah contract has been broadly applied by Islamic banks in the credit card underlying contract. Evidently, seven out of ten Islamic banks have used ujrah as compared to other underlying contract in Islamic credit card. Hence, it intrigued this study into a thorough probing of the real meaning for ujrah application in Islamic credit card in particular the applications, operations, modus operandi, issues and effectiveness. Consequently, this study was conducted to realize three primary objectives which are to identify the applications and operations of ujrah contract in Islamic credit card, to investigate issues related to ujrah contract in Islamic credit card as well as to evaluate the effectiveness of ujrah contract as a solution to the current issues of other underlying contract in Islamic credit card. Qualitative method was used in this study and the data collection was done by way of semi-structured interview and library search. Subsequently, the semi-structured interviews were conducted with four eminent Shariah experts in Islamic banking sphere that have direct information with the ujrah application in Islamic credit card. The findings showed that ujrah contract in Islamic credit card is in line with the Shariah teachings albeit the perception from several quarters is unwarranted. Apparently, there are two contracts in ujrah based credit card which are the ujrah which acts as a primary contract and qard as a secondary or incidental. Seemingly, both contracts are independent and do not in any way correlate to each other and able to circumvent the issue of bay’ wa salaf (combination of sale and loan) which has been prohibited by Rasulullah SAW. Ujrah contract is able to be enhanced for the effectiveness of the Islamic credit card. Thus, this study would be able to create awareness and consciousness of the Islamic credit card notably ujrah based credit card so that each and every Muslims would eliminate the thought of having a conventional credit card which associates with the prohibition element particularly riba.