Islamic banking allows financial institutions in the country to offer Islamic banking products and services, such as the Syariah-based Islamic credit card which falls under the Islamic Banking Scheme.

The Islamic credit card is offered by Islamic banks and non-Islamic banks to Muslims and non-Muslims.

It is based on three basic Syariah principles - Bai Inah (sale and purchase), Wadiah (safe custody) and Qardhul-Hasan (over limit usage without any profit charge).  It is free from Riba (interest) and Gharar (uncertainty).

Additionally, Islamic credit cards offer great savings in terms of compound interest, making it a cheaper alternative to conventional credit cards.

Some also charge lower cash withdrawal fee and provide other value-added services such as free takaful coverage and bonus profit rebate of up to 2.5% per annum.  Apart from that the Islamic credit card offers more or less the same benefits as conventional credit cards.