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International Journal of Law and Management: The Islamic credit card as an electronic payment method: the technical trick in the installment payment contract as a financial product
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Abstract
Purpose – This study aims to examine the validity of the installment payment contract when using the first
Islamic credit card (ICC) in Jordan and will explore the hidden techniques that are used to operate such a
financial product. The purpose of the study will be achieved by examining the structure and the issues
surrounding the first ICC that was introduced to the Jordanian market as a hybrid contract of Qard Hassan
(benevolent loan), Murabaha, Wakalah (agency) and Bay‘ Al Ajjal (credit sale). In addition, a further objective
is to examine whether this credit card is a Sharia-compliant financial product.
Design/methodology/approach – A qualitative research method approach was adopted to understand
the issues, nature and structure of the first Jordanian ICC. This was due to the explanatory nature of the
product, the different financial solutions it offered and the fact that the ICC in Jordan is, to date, relatively
unexplored. This paper used the technique of content/thematic analysis that involves multiple sequenced
steps to analyze these matters.
Findings – The main finding of this research is that the first ICC in the Jordanian financial market has
caused a degree of uncertainty. This is because, once a customer decides to choose the installment payment
contract option, the bank does not have real possession of the assets in question. The issue of constructive
possession has been denied by several classic and contemporary Islamic scholars, including the General Iftaa
Department of Jordan. Therefore, it can be seen that the installment payment contract option does not comply
with Islamic principles and particular Fatwas that have been decreed.
Originality/value – This is the first study that shows how the first ICC, being a new Islamic financial
product in Jordan, operates in relation to the installment payment contract. In addition, focusing on the
concept of changing the nature of the contract from a Qard Hassan (benevolent loan) to a hybrid contract is
significant, to encourage Islamic scholars to take a clear, legal stand under Sharia law.
Ahmad Abed Alla Alhusban - Personal Name
NONE
Text
ENGLISH
EMERALD INSIGHT
2021
ENGLAND
JURNAL ILMU HUKUM
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APA Citation
Ahmad Abed Alla Alhusban. (2021).International Journal of Law and Management:
The Islamic credit card as an
electronic payment method: the
technical trick in the
installment payment contract
as a financial product.(Electronic Thesis or Dissertation). Retrieved from https://localhost/etd