What Makes a Credit Card Islamic?

Other than conventional credit cards, Malaysians have the option to own an Islamic credit card. Also known as credit card-i, it is a card that follows the concept of Islamic banking. For non-Muslims who prefer banking governed by the Islamic law, these credits cards are available for them as well.


You might wonder, what’s the difference between a conventional credit card and an Islamic credit card? Find out the difference by reading this article!



Credit card-i is to follow the strict standards of the Islam known as Shariah. In general, it means users can only use Islam credit cards in halal transactions. For example, gambling and buying cigarettes are prohibited.


A filtering system exists for Islamic cards to restrict users from getting involved in unlawful activities according to the Islamic law.

islamic credit card

Zero interests

The prohibition of gharar, which means overcharging, and riba, which means interest, is what makes a credit card Islamic. Any Islamic credit card holder is not supposed to pay for interest or receive interest.


To compensate the bank for not paying interest, Islamic credit card users are charged for a service called ‘profit charge.’ If they don’t pay the outstanding amount within the grace period, they will be charged.


Islamic credit cardholders typically have to make a monthly repayment of 5% on their bills. If you pay them in time consistently, you can enjoy a lower profit rate charge and rise to a higher tier.


Privileges and benefits

The perks of an Islamic credit card is different from a conventional credit card. For example, a credit card-i usually offers takaful coverage and benevolence expenses. In the event of a deceased credit card user, the bank will offer benevolence expenses to cover some or the entire outstanding balance.


Besides that, Islamic credit cards provide the convenience of paying Zakat to Muslims.

Other Shariah concepts

In Arabic, Ujrah means fees. Islamic banks use this concept when in exchange for a service, benefits or privileges, a fee is charged instead of interest.


Another concept, Tawarruq, is when there is a transfer of ownership of a tangible asset from a seller to a buyer. The bank will provide aid to purchase a said asset, and the customer will repay the bank through the means of an Islamic credit card.



And there you go! These are some of the differences between a conventional credit card and an Islamic credit card.


Muslims or non-Muslims who prefer the Islamic way of banking can always apply for a credit card-i at https://www.rhbgroup.com/products-and-services/personal/islamic/cards/credit-cards.