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TAWARRUQ CREDIT CARD

TAWARRUQ CREDIT CARD

WHAT IS A TAWARRUQ CREDIT CARD?

A Tawarruq-based credit card is an Islamic card structured around a sequence of Sharia-compliant commodity trades rather than an interest-bearing loan. The bank (or its agent) sells you a commodity at a disclosed, deferred cost-plus (Murabahah) price; you then appoint the bank to sell that commodity for cash to a third party.

The cash proceeds fund your card account, and you repay the deferred selling price via your monthly statements—with profit known upfront and no riba.