Islamic Banks Prohibit Card Transactions at Vape Shops

Islamic banks in the United Arab Emirates that issue credit cards operating according to Sharia principles have started prohibiting card transactions at shops selling electronic cigarettes and shisha. This unprecedented move applies to both credit and direct debit cards issued by these banks. Shoppers holding such cards have confirmed to “Emarat Al Youm” that all shops in this category now reject payments using these banks’ cards.

Amjad Nasr, a banking expert, explained that Islamic banks utilize a coding system provided by Visa and MasterCard to identify the nature of the activities practiced by various shops. This coding allows the banks to classify shops according to their compliance with Islamic Sharia provisions. The classification and coding system applies both locally and internationally, ensuring that Islamic bank cards cannot be used for transactions at shops selling alcoholic beverages, tobacco, or any other products that contradict the terms and conditions of the card.

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Programmed Rejection and Audit Processes

Nasr further elaborated that Islamic banks program their card systems to automatically reject purchase transactions from non-compliant shops. The terms and conditions of Islamic cards clearly state these restrictions. Although some transactions may occasionally slip through, regular inspections and audits by Sharia authorities or the Central Bank uncover any instances of facilitated purchases from prohibited areas. In such cases, the banks must halt these transactions and strictly enforce the established system.

Expected Nationwide Implementation

While Sharia bodies in some countries consider cards as the customer’s private money, allowing them to bear the consequences of their purchases, Islamic banks in the UAE have reached a consensus. They agree that cards issued by Islamic banks cannot be used to purchase products that violate Sharia provisions. Nasr expects all Islamic banks in the country to implement this approach uniformly.

Source:
بنوك إسلامية توقف استخدام البطاقات في محال «السجائر الإلكترونية»

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Matthew Ma

Marketing at Ecigator

With over a decade of experience in the e-cigarette industry, Matthew Ma is a seasoned expert in both the manufacturing and usage aspects of vaping products. His extensive background has provided him with a deep understanding of the intricacies and evolving dynamics of e-cigarettes.