Functionally, both are intended for the same benefit, namely facilitating transactions with non-cash transactions. But of course you are wondering, then why should a credit card be made if it makes no difference? Of course there are fundamental differences, some of which are as follows:


Credit Card Issuer

Credit Card Issuer

Simply put, conventional credit cards are issued by conventional banks while Islamic credit cards are issued by Islamic banks or Islamic financial institutions (LKS). But now conventional banks have collaborated a lot to participate in issuing Islamic credit cards, for example Bank BNN Sarah, which has worked with the Master Card since 2008. Like conventional banks, all Islamic bank businesses are monitored by the Financial Services Authority (OJK).


Contract System

Contract System

Based on Islamic law, there is no interest system in Islamic credit cards. For example, on a conventional credit card there is a fine in the form of interest if you make a cash withdrawal or loan on a credit card. Unlike the case with conventional credit cards, the provisions of credit cards are regulated in the qardh contract. In addition to the qardh contract, several other contracts apply which will be discussed further at the next point.


How to Calculate Credit Card Installments

How to Calculate Credit Card Installments

In the calculation of conventional credit card installments, generally there are two main components, namely the principal of debt and interest. However, due to the absence of interest in Islamic credit cards, there are differences in how to calculate the amount of the installments each month. In Islamic credit cards, a fee is called a monthly fee , which is a fee that appears on a credit card according to the credit card limit. The fees charged are equally large for all credit card holder customers with a certain card limit range.

One of the striking differences in Islamic credit cards compared to conventional credit cards is the calculation of the monthly fee . The pattern of calculation on credit cards if you are unable to pay bills in full, ie monthly fees are only charged to the remaining debt. Whereas in conventional credit cards, interest is calculated against all usage or bills that occurred in the previous month. Because of this difference, generally the amount of installments on Islamic credit cards is smaller than conventional credit cards.

The formulas and calculation examples used in the net monthly fee are as follows:

Net monthly fee = Outstanding (remaining debt) x ( monthly fee : card limit)

The customer made a transaction on March 3, 2016 amounting to 1,000,000 rupiah. The bill will be printed on March 15, 2016 and will mature on April 5, 2016. However, the customer concerned paid off a bill of 600,000 rupiah on April 2, 2016, so that the remaining and unpaid debts are:

Net monthly fee = Rp.400,000 x (Rp295,000: Rp.10,000,000) = 11,800 rupiah


Determination of fines is carried out at the beginning

credit penalty

In Islamic credit cards, a fine system is imposed if you are late making payments. This fine which is usually called Tawidh has been calculated and determined at the beginning. As a result, fines are not calculated based on the length of the delay or the amount of the bill that is late to be paid as in conventional credit cards.

Each bank has its own policies that are different from each other in the determination of the amount of this laughter . For example, based on the type of card or the expiration date. But everything has been set up and informed from the beginning you signed up to make a credit card.


Promos and Price Discounts

credit card promos

Some customers or users choose to use credit cards in transactions not because of credit needs or convenience, but because of the many promos and discounts offered at certain retailers.

Unfortunately, one of the differences in Islamic credit cards with conventional credit cards is the promotional offer. Because it adheres to principles and provisions governed by Islamic law, the purpose of using credit cards is for productive transactions. Thus, there are not many promotions or attractive offers provided by this credit card.

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