Ambit Card Management for Islamic Banking
Islamic banks are faced with an insistent demand from their customers for card-based financing options, payment convenience and ability to pay for purchases in accordance with the Sharia’h. The ability to accomplish this through conventional credit cards is however considered haram or prohibited due to the interest-based nature of the conventional card business. However, this does not prevent Islamic banks from offering halal card products by removing Riba or interest as the major earning mechanism.
SunGard can help. SunGard’s Ambit Card Management for Islamic Banking can help Islamic banks provide interest-free Sharia’h- compliant card products through a combination of fee-based charging schemes.
Features
- No interest is charged on outstanding balance
- Credit is limited to and guaranteed by funds coming from the customer’s account that is based on a Wadiah contract or other deposits of the customer in the Islamic bank
- Total profit chargeable over the card’s duration is fixed at the start
- Sharing of card operations cost with cardholders
- Additional funds can be made available to customers through a Qard Hassan contract
- Charge membership fees
- Charge administration fees
- Charge variable fees to guarantee purchase payments to merchants or as a fee for the provision of the credit facility
Benefits
- Allows design of competitive Sharia’h-compliant debit, credit and stored-value card solutions for retail and commercial banking payments applications