Skip to content
Islamic Credit Cards
Countries:United Arab Emirates101Malaysia88Saudi Arabia111Pakistan8Indonesia10Qatar38All countries

Glossary

Muqassah

Set-off: cancelling what you owe against what you are owed, so only the difference is paid.

مقاصةmuqāṣṣah

Muqassah is the settlement of mutual debts by offsetting them, covered by AAOIFI Shariah Standard No. 4 on settlement of debts by set-off. It has a direct consequence for cardholders: AAOIFI Shariah Standard No. 3 clause 2/5/3 permits an institution to stipulate that if the debtor is late, it may recoup the amount due from any of the customer's accounts with it, current or investment, without further consent, provided the currency matches, and at the prevailing exchange rate if it does not. So a late Islamic card payment can be taken from your savings account if the contract says so.

Related terms

DaynA debt: money you owe to somebody.HawalahTransferring a debt from one person to another, so a different person now owes it.Ta'widhCompensation for money the bank actually lost because you paid late.

Sources

  • AAOIFI Shariah Standard No. (4); Shariah Standard No. (3) clause 2/5/3

Back to the glossary