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Shari ‘ah & Fiqh
I) Definition
Literal meaning:
- Understanding
- Profound and correct understanding
Technical meaning:
1- General meaning (early stage)
- A person’s knowledge of his rights and duties
2- Later definition (separation of sciences)
The knowledge of detailed shar‘i akham (legal
rules) pertaining to conduct derived from their
specific evidences
Shari ‘ah
A comprehensive term which include both fiqh
(Islamic law) and tenets.
It include all texts, teachings and principles
Beliefs + Law + ethics
- Wider
- Source = divine
- Immutable
- Narrower
- divine + sunnah +
human endeavor
- some parts may
Madhahib Fiqhiyyah
(Schools of Islamic legal thought)
The emergence of madhahib fiqhiyyah is
the result of practising ijtihad
What is ijtihad?
- Interpretation of texts
- Deduction of ahkam (legal rulings) on
new incidents
Why ijtihad is needed?
- Texts which impart more than one
meaning =
imply more than one interpretation
- Texts are limited in number while new
incidents are unlimited in number
- A lot of texts are in the form of general
rules and principles to embrace new
Brief history of ijtihad
1- Ijtihad in the era of revelation
- The main source of law was Revelation
(the Qur’an)
- Sunnah as an inspiration and guidance
from Allah to His Messenger
- Ijtihad of the Prophet in interpreting and
applying the texts of the Qur’an
- Ijtihad of Sahabah
= limited
= Corrected by the Prophet or
= If they disagree on any issue
they refer it the Prophet and his
decision is final
2- Ijtihad in the era of Sahabah
- The scope of ijtihad widened = new
= Expansion of Muslim state = new
people, new customs and traditions
= Development of life = new challenges
- The result of this ijtihad:
= Agreement = ijma‘ (consensus of
= Disagreement = no higher authority to
make a final ruling and unite all opinions
- That was the seed of madhahib fiqhiyyah
3- Ijtihad after the era of Sahabah
More developments in social, economic and
intellectual life = the scope of ijtihad
became wider and wider
Mujtahids (scholars who are specialized in
religious studies and mastered it)
developed their methods of ijtihad
Madhahib shaped and developed
What is a madh-hab?
First stage: emergence
A scholar’s approach of ijtihad =
rules and principles of interpretation
+ legal views and opinions
The last stage: development
The sum total of the scholar’s legal rulings
as well as the rulings of his students and
that of all the scholars who adhered to
their approach of ijtihad.
Mujtahid = rules of interpretation + legal opinions
Students = adopt his approach + narrate & record his
legal opinions + spread those opinions + enrich them
Those who adhere to his methodology of ijtihad = spread
the madh-hab + enrich it +formalize the madh-hab
How many madhahib are there?
- In the first sense of madh-hab
There were many madhahib
- But those madhahib which continued to exist and
established themselves are five
- The reason behind this continuation is mainly
because of the number and the role of students
and followers
Those five madhahib are:
1- The Hanafi madh-hab
2- The Maliki madh-hab
3- The Shafi‘i madh-hab
4- The Hanbali madh-hab
5- The Zahiri madh-hab
Shi‘i schools:
- The Zidi madh-hab
- Imami/ Ja‘fari madh-hab
The objectives of Shari ‘ah
(maqasid al-Shari‘ah)
(Islamic criterion for measuring human needs )
The main objectives of the shari‘ah are of two
1- to secure the interest of mankind that
pertains to Hereafter,
2- to secure the interest
pertaining to this world.
Who is to determine what is in man’s
- The lawgiver (Allah & His Messenger)
- Human reason (in light of texts,
general principles = should not
contradict or violate the texts the
general principles)
a) Classification of interest pertaining to
its compliance with Shari‘ah
= (Criterion for evaluating the acceptance of
1- Acknowledged/ accredited interest:
- Explicitly
- Implicitly = new interest which may be
related to this type of interest
2- Rejected/ discredited:
- Explicitly
- Implicitly = what may be considered
by some people as interest but which is
in contradiction with the texts and
principles, or which may violate the
objectives of shari‘ah.
b) Classification of interest pertaining to
its importance
(for the existence and preservation of human life)
1- The essentials/ necessities (primary objectives):
Basic requirements to the survival and spiritual
well-being of individuals and societies
Their destruction lead to seriously affecting
human life (basic human rights), demise of
normal order, chaos in the society
2- The needs/ exigencies (secondary objectives):
Those interests which are needed to:
- support necessities
- remove severity and hardship
Their absence does not impose a threat to the
very survival of normal order and basic human
The complementary interests (supporting
To attain perfection and refinement in human life
= The relation between the three
Each outer shell forms a supportive and
protective boundary for the inner shell.
The basic human rights:
1- Religion
2- Life
3- Lineage/ progeny/ family
4- Intellect/ reason
5- Property/ wealth
= The benefit of this classification:
- To resolve any conflict between these
different categories of interest
Rule one:
The rules of conflict and priority:
1- The stronger interest shall prevail:
Although all the necessities should be
observed, promoted and protected, in
case of conflict they should be taken in the
order in which they are stated:
- Daruriyyat have priority over the hajiyyat,
which in turn have priority over the
- Din has precedence over life (jihad);
- Religion # intellect = freedom of thinking
- Religion # property = spending/ haram
- Life has precedence over nasl (abortion);
- life has precedence over ‘aql (drinking
wine, drugs for medical purposes);
- ‘aql has precedence over wealth
(education) ...etc.
Legal maxims which govern
this rule
1. Committing the lesser of two
2. Necessity dictates exception/
necessity overrules prohibition.
3. That which became permissible by
necessity is estimated by the extent
4. Avoiding harm is prior to acquiring
Rule two:
The public interest is prior to the
Legal maxim: Committing a specific
harm for the sake of preventing a
general harm.
1- Taking preventive measures
against people who are carrying
transmitted diseases;
2- Punishments;
professional from practising;
4- Prohibition of hoarding
How shari ‘ah preserves the five
basic human rights?
1- Affirmative measures =
establishment + maintenance (obligations,
recommendations, permissible)
2- Protective measures = prohibition +
1- Religion:
Affirmative measures:
- Establishment: revelation
- Maintenance: continuous practice, da‘wah/
al-’amru bil m‘ruf
Protective measures:
a) Against insiders: punishment for
neglecting religious obligations and
apostasy, preventing evil
b) Against outsiders: defending religion
intellectually, power and independence,
2- Life:
Affirmative measures:
- Establishment: creation, marriage
- Maintenance: providing sustenance,
maintaining good health
Protective measures:
- Prohibition of any attack on human life
without legal justification (homicide,
suicide, injuries) + Qisas
3- Lineage:
Affirmative measures:
- Establishment: marriage
- Maintenance: establishment of family +
responsibilities towards children
Protective measures:
a) Against its discontinuity (demise):
prohibition of abortion, sterilization,
b) Against its confusion:
prohibition of adultery, false
accusation, surrogate motherhood
and surrogated fatherhood
4- Intellect:
Affirmative measures:
- Establishment: created by Allah
- Maintenance: education and pursuit of
Protective measures:
prohibition of intoxicants, drugs, prohibition of
believing in superstitions
5- Property/ wealth:
Affirmative measures:
Bounties given by Allah
Permission of trade and conducting business,
private ownership
Protective measures:
Prohibition of violating the property of other,
extravagance, theft, misappropriation
Family planning
Birth control
The use of birth control methods to choose the
number and timing of children born into a family
1. To limit the number of children to a very small
number (1, 2)
2. To distance the occurrences of pregnancies for
a specific period of time
3. To eliminate the possibility of having children
1. To limit the number of children to a very small
- This practice is not in line with the general
guidance from the Qur’an and the Sunnah.
- Following are some examples that appear to
be discouraging this practice:
1. Islam encourages people to have children.
a) To marry fertile spouse:
“Marry women who are loving and fertile (childbearing), for I shall outnumber the peoples by
b) Rejection of celibacy: “I pray and I sleep; I
fast and I break my fast; and I marry women.
Whoever turns away from my way of life is not
from me.” (hadith)
2. Allah has warned about killing one’s
children out of fear of poverty.
)151 :‫َوال تَ ْقتُ لُوا أ َْوال َد ُك ْْم ِم ْْن إِ ْمالقْ ََْن ُْن نَ ْرُزْقُ ُُك ْْم َوإِ اَّي ُه ْْم} (األنعام‬
“Kill not your children because of poverty - We
provide sustenance for you and for them" (6:
‫الق ََْن ُنْ نَْ ْرُزقُ ُه ْمْ َوإِ اَّي ُك ْْم إِ اْن قَ ْت لَ ُْه ْْم َكا َنْ ِخطْئًا‬
ْ ‫َوال تَ ْقتُ لُوا أ َْوال َد ُك ْْم َخ ْشيَةَْ إِ ْم‬
)‫)} (اإلسراء‬31(‫ريا‬
ً ‫َكب‬
“And kill not your children for fear of poverty.
We shall provide for them as well as for you.
Surely, the killing of them is a great sin" (17:
3. The Prophet (saw) said about
“There is no harm if you do not do that,
because the birth of the child is something
4. The Prophet (saw) said on 'azl
(contraception): That is the secret
way of burying alive.”
5. It is exploited by anti-Muslims to
reduce their population.
2. To control the timing of births with the
intent of distancing the occurrences of
a way of avoiding pregnancy temporarily,
using either artificial methods such as
condoms and birth-control pills or natural
methods such as avoiding sex during the
woman’s known fertile periods.
a) One form of contraception was practised
during the time of the Prophet (saw) while
the Qur’an was being revealed but neither
the Qur’an nor the Prophet (saw)
prohibited it.
Jabir reported: “We used to practise 'azl
(withdrawing the male sexual organ
before emission of semen to avoid
conception) during the lifetime of Allah's
Messenger (saw). The news of this
practice reached Allah's Messenger (saw),
and he did not forbid us.”
- When 'azl was mentioned in the presence of
Allah's messenger (saw) he said: Why do you
practise it? They said: There is a man whose wife
has to suckle the child, and if that person has a
sexual intercourse with her she may conceive
which he does not like, and there is another
person who has a slave-girl and he has a sexual
intercourse with her, but he does not like her to
have conception so that she may not become
Umm Walad, whereupon the Prophet (saw) said:
There is no harm if you do not do that, because
the birth of the child is something pre-ordained.”
b) The Messenger of Allah said: “I intended
to prohibit cohabitation with the suckling
women to avoid pregnancy within suckling
period, but I considered the Greeks and
Persians, and saw that they used to
cohabit with their suckling wives and that
did not harm their children. Then they
asked him about 'azl, whereupon he said.
That is the secret way of burying alive.”
The Prophet (saw) did not prohibit
contraception but he did not encourage it.
- It would be lawful for a couple to use
contraceptive methods if they opt for it,
provided that:
- It does not involve pregnancy termination.
- It should not be made as a general policy
of a Muslim community as it may be
exploited by anti-Muslims to affect Muslim
communities and turn them to minorities.
- It should not be imposed on anyone by
anyone, as it is the absolute right of
everyone to have children.
- It should be practised only with the consent
of both sides: husband and wife.
3. To eliminate the possibility of having
Surgical contraception (sterilization)
This method of contraception is done
through removing or blocking sex organs.
- Vasectomy is a surgical procedure leading
to the sterilization of man. It is a procedure
that involves cutting, tying and sealing
both the tubes running sperm from
testicles to the urethra and penis.
It is a way to prevent ejaculation
- For women, oviducts (tubes that run eggs) are
surgically cut and sealed, preventing an egg
from reaching the womb or from even coming
in contact with sperm but allowing ovulation
to continue.
It is also a way to prevent pregnancy
permanently for women.
- Sterilization is not lawful in Islam. It is against
one of the main objectives of creating the two
different sexes; that is to have children and
cause the continuation of human race.
ْ‫صلاى اّللاْ َعلَْي ِْه َو َسلا َْم َعلَى عُْث َما َنْ بْ ِْن َمظ ُْعون‬
َْ ‫اّلل‬
ِْ‫ َراْد َر ُسولُْ ا‬:َْ‫َب َوقااصْ قَال‬
ْ ِ‫َع ْْن َس ْع ِْد بْ ِْن أ‬
.)‫ كتاب النُكاح‬:‫ص ْي نَا" (صحيح مسلم‬
َْ ‫التابَ ت‬
َ َ‫ُّل َولَ ْْو أَذ َْن لَْهُ ال ْخت‬
Sa'd b. Abi Waqqas says: the idea of 'Uthman
b. Madh'un for living in celibacy was rejected
by the Prophet (saw), and if he had been given
permission they would have got themselves
castrated (sterilized).”
Abdullah b. ‘Umar said: We used to participate in
jihad with the Prophet (saw) and we had no
wives with us. So we said (to the Prophet).
“Shall we castrate (sterilize) ourselves?” But the
Prophet forbade us to do that and after that he
allowed us to marry a woman by giving her even
a garment, and then he recited: “O you who
believe! Do not make unlawful the good things
which Allah has made lawful for you.”
Sterilization may be practised under cases
of necessity
- When pregnancy becomes dangerous to the
mother’s life (determined by trustworthyMuslim doctors) and when other alternatives
of contraception have been exhausted
without being effective.
- Marriage for tow persons infected with AIDS,
Human reproduction methods
1- In vitro fertilization/ IVF (test
tube babies)
- This is a method of assisted reproduction in
the man’s sperm and woman’s egg are taken
and then combined in a laboratory dish,
where fertilization occurs.
The resulting pre-embryo is then transferred
to the woman’s uterus.
This practice is lawful only when it involves a
married couple while
the marriage contract is still valid, and
necessary measures are taken to prevent any
manipulation of this practice to avoid any
lineage confusion.
2- Artificial insemination
A method of inducing pregnancy in a
female mammal by injecting sperm into
the womb.
This would be lawful if:
- If the sperm is taken from the legal husband
- in a continuing marital life
But if the sperm used is from a third party or one
who is not a legal husband or from the husband
but after divorce or his death, it will be
3- Surrogacy
Surrogate: taking place of somebody or
something else.
Surrogate mother:
A woman who bears a child for a couple,
with the intention of handing it over at
birth. She usually either is artificially
inseminated by the man or implanted with
a fertilized egg from the woman.
1- The sperm and the egg are taken
respectively from a legitimate husband
and wife. The egg fertilized and then
implanted in the womb of another woman
who is not the wife of that man. (uterus)
2- The sperm is taken from the legitimate
husband but the egg is taken from another
woman who is not his legal wife. The egg
is fertilized and then implanted in the
womb of his legal wife. (egg)
3- The sperm is taken from the legitimate husband but
the egg is taken from another woman who is not his
legal wife. The egg is fertilized and then implanted in
the womb of the same woman from whom the egg
was taken. (egg + uterus – same woman)
4- The sperm is taken from the legitimate husband but
the egg is taken from another woman who is not his
legal wife. The egg is fertilized and then implanted in
the womb of a third woman. (egg + uterus – different
- These four forms are haram because in each case a
third party who is not a legitimate wife is involved.
5- The sperm is taken from a husband who have
more than one wife. The egg is taken from one
wife. After fertilizing the egg the pre-embryo is
implanted in the womb of the second wife.
Regarding this case, most of Muslim scholars
believe it is unlawful also. Although the sperm is
not strange to the womb since it is the womb of
his second wife, but the egg is a stranger
because it is from another woman.
Another objection is that the woman who is
bearing the embryo may conceive from her
husband using her own egg whereas the embryo
implanted may fail to develop and this may lead
to confusion: to whom the foetus belongs?
- Marital life is limited to its legitimate parties.
Any practice that may involve any third party
(either a man or a woman) in any form
(whether in the form of semen, an ovum, an
embryo, or a womb) is unlawful.
- Any interference to violate the contract of
marriage by introducing any third party (male
or female) by a normal way or a biomedical
technique is violation of Islamic law. Thus, it
is forbidden.
- Blood relationship is the fundamental basis of
marriage and inheritance in Islam. Any practice
that may undermine the family ties or create
lineage confusion is forbidden.
- Destruction of the concept of motherhood
- Weakening familial relations
- Confusion in lineage
Surrogate fatherhood
This is when the sperm is taken from a man who is
not the legitimate husband of the woman.
This is forbidden because it involves a person who
is not tied to that woman with a legitimate marital
Remedies for barren (infertile)
1- Using artificial techniques of fertilization
2- Foster parenting
Legal adoption
foster parenting
- Take the name of the - retains the name of
new family
his original family
- May be entitled to
- not entitled/ may be
given through will
(wasiyyah) up to 1/3
- Not a mahram
Plastic surgery
the surgical speciality concerned with the
treatment of structural deformity and
disfigurement. It is also involved with the
enhancement of the appearance of a person
a) Cosmetic surgery
b) Reconstructive surgery
a) Cosmetic surgery:
Performed to reshape normal structures of the
body to improve the person’s appearance.
Like facelift (a medical operation in which the
skin of a person’s face is tightened in order to
make them look younger) and attempts to
reverse the signs of ageing, and surgery of
breasts (to increase or decrease the size of
the breasts).
‘Abdullah reported that Allah had cursed those
women who tattoo and who have themselves
tattooed, those who pluck hair from their
faces and who have their facial hair plucked,
and those who make spaces between their
teeth for beautification changing what Allah
has created.
Prohibited because of:
- Excessive beautification
- Entails deception
- Changing creation of Allah
- Entails dissatisfaction with one’s creation
- Pride and show-off
- Not needed/ no harm to be removed
- Concentration on carnal beauty
- Wasting of money
b) Reconstructive surgery:
Performed on abnormal structures of the
body caused by:
- Congenital defects (defects that exist
since or before birth): abnormally
turned-out lips, split lips, twisted fingers
or toes...etc.
- developmental abnormalities: tumours
(a mass of cells growing in or on a part
of the body where they should not,
deformed teeth…etc.
- Injuries: scars left by leprosy or other skin
diseases, or scars caused by accidents and
This type of surgery may be permitted because
these faults and scars usually cause physical
and psychological pain to the person inflicted
with them. Moreover, operating on them is
not considered to be changing the creation of
Termination of human life
1- Suicide
ِ ِ ْ‫{وال تَ ْقت لُوا أَن ُفس ُُك ْم إِ اْن ا‬
)29 :‫يما} (النساء‬
ُ َ
ْ َ
ً ‫اّللَ َكا َْن ب ُُك ْْم َرح‬
“You shall not kill yourselves” (4: 29)
ِ ‫{ َوالْتُ ْل ُق‬
)195 :‫اهلُ َُك ِْة} (البقرة‬
ْ ‫واِْبَيْ ِدي ُُك ْمْإِ ََلْالت‬
“Do not expose yourselves to ruin” (2: 195)
“And whoever commits suicide with a piece
of iron will be punished with the same piece
of iron in the Hell Fire.” (hadith)
Narrated Jundab the Prophet said: "A man was
inflicted with wounds and he committed
suicide, and so Allah said: My slave has
caused death on himself hurriedly, so I forbid
Paradise for him."
Cause of suicide:
Overwhelming sense of despair
2- Euthanasia (mercy killing)
People involved:
- A patient in a persistent vegetative state who
is awake but is not aware of self or the
- Patient in terminal illness who may or may not
be subject to life-support machine.
- People suffering from great pain.
Types of Euthanasia:
a) Active Euthanasia:
An act of commission by taking action that
leads to death, e.g. a lethal injection.
b) Passive Euthanasia:
- Letting a person die by taking no action to
maintain his life, like stopping giving
medications to one whose life is dependent
on it.
- Withholding medical or surgical procedures
and life-support systems.
3- Abortion
The expulsion of the products of pregnancy
before the foetus is viable. Any interruption of
human pregnancy prior to the 28th week (6
months) is known as Abortion.
This term is used for the delivery of a nonviable
embryo or foetus due to foetal or maternal
Induced Abortion
This is made by an elective decision to
terminate the pregnancy through the
ways and means available.
- If the induced Abortion is performed to
prevent the health or life of the mother,
it is called therapeutic abortion.
Abortion: lawful or haram?
1- After quickening (the soul breathed in
the body)
- Prohibited
- When quickening takes place?
After 120 days
After 40 days
2- Before quickening (40 days/120)
- Few scholars: permissible
- Few scholars: reprehensible
- The majority: prohibited only for justifiable
reasons (rape, incest, genetic diseases)
Why prohibited?
- Assault against human life
- Harmful (mentally, emotionally, physically)
- Ethical impact: encourage adultery especially
among teens.
4. Organ donation and transplantation
Legal justification
Violation of human body/ dignity
In favour:
- And if anyone saved a life it would be as if he saved
the lives of all mankind.” (5: 32)
- Charity
- Necessity dictates exception
- Choice of the lesser evil if both can’t be avoided
- Prohibition of sale or exchange
Organs donated:
1- Primary organs essential for life
Heart , brain
Brain stem death – keeping some organs
2- Secondary organs essential for life
- Two: kidneys, lungs
- One: liver
3- Secondary organs, not essential for life
- Irreplaceable: hands, ears, nose, legs, eyes,
4- Other parts of the body
- Replaceable: blood, skin, other tissues
5- Organs involved in reproduction
Testicles, ovary, womb
The donor
1- Animals: lawful, unlawful
2- Humans:
- Miscarried foetuses
- Aborted foetuses
- Children/ minors/ under guardianship
- Adults:
- Living
- Dead:
- explicit acceptance or
- no will
The recipient
- Muslim
- Non-Muslim
Transsexual (Transsexualism)
Transgender (Transgenderism)
What is gender?
The term gender is used to distinguish
between what is considered as
‘masculine’ or ‘feminine’
What determines gender identity?
1- Biological factor: sexual organs, physical
appearance (shape of the body),
2- Characteristics, attributes, behaviour: Dress,
mannerism, speech patterns, social
behaviour and interaction.
3- Psychological factor: The feeling or desire of
someone to express his gender identity in a
form which is not in conformity with their
biological sex.
Who is to assign gender identity?
1. The Creator: the biological gender
2. Can society assign gender identity to
3. Can gender identity be changed based
on mere psychological factors: feeling
and desire?
Type of those seek gender/sex
reassignment (transsexuality)
1. Hermaphrodite: one who has both
male and female sexual organs
2. People with hormone disorder
3. People with mere desire to move to the
other gender (social, family, and
psychological factors).
Islamic financial
1- Prohibition of riba (usury/ interest)
2- Prohibition of gambling
3- Prohibition of involvement in prohibited
commodities (production, sale, buy)
4- Avoidance
5- Risk-sharing or help
 If
you want to get profit in this life you have to
accept risk-sharing
 If
you want to get profit in the second life you
help the needy through al-qardh al-hassan
== Application of all transactions which don’t entail
the above-mentioned prohibitions
- Islamic banking business runs on the basis of
commercial and trading principles.
Islamic Financial Markets
Conventional Financial Markets
- Comparison between Islamic and
conventional financial markets in theory
and practice.
- Deposits / Accounts
- Money transfer
- Loans
Credit Card
A small plastic card issued to users of the credit
system after approval from a provider (bank), in
which they will be able to make purchases from
merchants supporting that credit card up to a
prenegotiated credit limit.
When a purchase is made, the credit card user
indicates their consent to pay, usually by signing
a receipt.
- Some services can be paid for over the
telephone by credit card merely by quoting the
credit card number, and they can be used in a
similar manner to pay for purchases from online
vendors. (“card not present" transactions)
- Each month, the credit card user is sent a
statement indicating the purchases undertaken
with the card, and the total amount owing.
- The cardholder must then pay a minimum
proportion of the bill by a due date, or pay the
entire amount owing.
Secured Credit Cards
- A secured credit card is a special type of
credit card in which you must first put
down a deposit between 100% and 150%
of the total amount of credit you desire.
- Thus if you put down $1000, you will be
given credit in the range of $500-$1000.
- This deposit is held in a special savings
- The owner of the secured credit card is still
expected to make regular payment, as he or she
would with a regular credit card.
- Should he/she default on a payment, the card
issuer can deduct payments on the card out of
the deposit.
- They are often offered to people as a means of
rebuilding one’s credit.
- Secured credit cards are available with both Visa
and MasterCard logos on them.
Types of credit given
1. Some credit card issuers offer interest-free
If the balance is paid in full each month (or the
stipulated period) the interest charges will be
waived. This allows the credit card to serve as a
form of revolving credit.
If the balance is not paid as stipulated by the
agreement on the which the card was issued,
interest charges will be imposed on the credit
card holder.
Typically, the rate of interest charges on the
amount owing is much higher than most other
forms of debt.
2. Some credit providers charge interest on the
amount owing from the very beginning.
In this case the interest rates are much lower than
those imposed in the first type.
Guarantee to merchants:
- Credit card companies generally provide a
guarantee the merchant will be paid on
legitimate transactions regardless of whether the
consumer pays their credit card bill.
- However, credit card companies generally will not
pay a merchant if the consumer challenges the
legitimacy of the transaction.
Benefits to card companies:
1. The interest charges imposed on debts given
(from the beginning or after the due date of
2. card companies charge merchants fees/
commission for money transfer.
3. Annual fees
Credit Card Organizations:
1. Diners Club (Dinners Club International)
2. MasterCard (Master Card Incorporated)
3. BankCard (Australian Financial Institutions)
4. VISA (International Service Association)
5. American Express (American Express, NY)
6. Discover Card (Discover Bank/ Morgan Stanley)
7. JCB (Japan Credit Bureau)
Adventages vs. Disadvantages:
- Conveniency in payment/ no need to carry cash
- Emmidiate availability of (short term) loans in
case of an urgent need
- Avoidance of long procedures.
- Face saving in case of need for short loans.
- Enhances the culture of borrowing
- Enhances consumerism:
- Difficulty in controlling expenses
- Uunwise use especially by young people
- Suffer the long-term consequences of
carrying high debt.
- Payment of prohibited interest (riba)
- Extra burden on consumers
The credit card companies usually prevent the
money transfer fees from being passed on to
credit card users the merchants, certainly, don’t
bear those fees.
The fees are spread among all customers by
adding them to the normal prices.
especially as some credit providers give their
users incentives such as frequent flier miles or
gift certificates
The credit card users (some individuals) are using
a public good without bearing the entire cost of
their actions. The costs are borne by others.
Debit Card
A debit card is a card which physically resembles a
credit card, and, like a credit card, is used as an
alternative to cash when making purchases
when purchases are made with a debit card, the
funds are withdrawn directly from the
purchaser's checking or savings account at a
Types of debit card:
1. Online debit cards: use the same underlying
technology as ATMs (Canada)
2. Offline debit cards: carry the logotypes of, and
can be used in a manner nearly identical to,
major credit cards (e.g. Visa or MasterCard).
The use of a debit card in this manner may have a
daily limit, with the maximum limit being the
amount of money on deposit.
A debit card used in this manner is similar to a
secured credit card.
A small fee may be charged for "debit"
transactions (often absorbed by the retailer)
from the merchant's standpoint, the merchant pays
lower fees on a "debit" transaction as compared
to "credit" transactions.
To the consumer, a debit transaction is real-time;
i.e. the money is withdrawn from their account
immediately following the authorization request
from the merchant.
Ruling on debit /credit card
1. Debit card: lawful
2. Secured credit card: lawful
3. Other credit cards:
- It is strictly prohibited for a Muslim/ Islamic bank
to issue interest-based credit cards.
- A lot of scholars are of the opinion that signing a
credit card contract and using it is permissible
with two conditions:
1) that the user is keen and able to pay within the
grace period
– the purchases made don’t exceed the amount
that one can pay when the bill comes/ within the
grace period;
2) the user will not withdraw cash (because cash
withdrawal generates interest from the day of
withdrawal and does not have a grace period).
Justification of permissibility
One is not signing a loan contract with interest but
he is signing a contract that gives him the choice
to make the interest applied or not.
Consequently, if you know for sure that you can
use it without incurring any interest you make
the interest clause useless and it is permissible
to sign such a contract and use the card.”