Understanding and applying shariah principles in Islamic credit card products: a study at Maybank Tanah Merah / Mohammed Haikal Hanan

The increasing awareness of Shariah-compliant financial practices has driven the demand for Islamic financial products in Malaysia, particularly Islamic credit. These products offer a Shariah-compliant alternative to conventional credit cards, adhering to principles that prohibit riba (interest), gharar (uncertainty), and unlawful transactions. Maybank Islamic Berhad, a leading institution in the Islamic banking sector, offers the Ikhwan Islamic credit card, which is structured on an Ujrah (fee-based service) contract to ensure compliance with Shariah laws. However, implementing this product remains a challenge, especially at the Maybank Tanah Merah branch level, due to the complexity of the Shariah contract and the varying levels of Shariah knowledge among bank officers. The background of this study is to understand and investigate the operation of Islamic credit cards at Maybank Tanah Merah branches, focusing on Shariah principles, compliance controls, and the influence of officers’ Shariah knowledge on promoting this product. The findings indicate that through the implementation of the Ujrah contract on Islamic credit cards, transparency and alignment with modern financial practices are prioritized, although some officers show a modest understanding of Shariah principles. This gap impacts their ability to confidently explain product features to customers, which is a barrier to promoting Islamic financial products. Training initiatives were identified as a critical factor in improving Shariah knowledge, with respondents highlighting comprehensive workshops as beneficial. Apart from that, challenges such as the complexity of terms and customer misconceptions persist, emphasizing the need for simplified communication tools.