Chapter 6: Perception of Credit Card on Maqasid Shariah (Protection on Wealth)

Abstract

The modern society uses credit cards as a payment system. Physically it is a rectangular card with data storage capabilities (Carcillo et al., 2021). There are three main payment system types: credit cards, debit cards and charge cards. Unlike debit cards, credit cards allow debt collection, and no deposit is required. Users need to deposit funds in their accounts with the bank before using a debit card (Amin, 2012; Amin, 2013). Credit cards are plastic cards issued by a financial institution to the customer as an extended form of credit, which customers can use in cash in any merchant’s outlets. Financial institutions issue cards as a form of business where they can profit, primarily through late payment charges and various fees, including replacement cards and incurring fees. What is unique about the credit card industry is that financial institutions are at a cost when customers make total payments on time. Hence, the credit card business grows to those who need help fulfilling their payment obligations (Dornadula & Geetha, 2019).