My first post is going to talk about the different between credit and debit card. Why I want to talk about this is because Islam is prohibiting Riba or Interest. It is additional money given to a debt either because by the installment itself or because of late fee, etc. I cannot go further because of the lack of my knowledge, please ask some salaf scholars or you can search from authentic sources in the Internet.
The debit or credit card is basically a card used to pay for goods we purchase. Before the chip technology, it was basically using magnetic stripe, in which electronic data is encoded inside it. The data are PAN (Primary Account Number), Name, Expiration Date, CVV or PVV and so on. Once the card is swiped on to the terminal/ATM, the machine reader will read the data and send it to the Bank system for authorization. However, there is no mechanism which could tell that the card is authentic/original and the magstripe data is easy to copy to another magstripe card.
Then comes the chip technology or EMV. However not until DDA was introduced, the chip is also prone for duplication because of the data in the card is just static data (SDA), although in my opinion it will be difficult to trick the online transaction. Also there is called CVM list, Cardholder Verification Method. It is a list of verification need to be done to verify if the cardholder is legitimate.
Wait a minute, what is the relation of this explanation compared to the title of the article?
Well, as far as I know, there is no difference in between credit and debit card in term of technology used. For credit card maybe there is, for example there is COTA; Cumulative Transaction Amount or COTN Cumulative Transaction Number, which is the total amount and no of transactions summed by offline transaction. However it is actually up to the issuer/bank to choose which profile they want for their customers. For debit, most -if not all- of the transactions are online, because it needs to check the balance before authorizing the transaction.
However the clear different between credit and debit is not on the card, but at the settlement by the bank it self. While the debit is PAY NOW and credit is PAY LATER. And it is up to the bank's policy to either setup the late fee, interest and so on.
This blog will talk about the technology of EMV/security/chip/smart card itself and mostly related to payment. This blog is not made to support any implementation of Riba in any forms. Period.
The debit or credit card is basically a card used to pay for goods we purchase. Before the chip technology, it was basically using magnetic stripe, in which electronic data is encoded inside it. The data are PAN (Primary Account Number), Name, Expiration Date, CVV or PVV and so on. Once the card is swiped on to the terminal/ATM, the machine reader will read the data and send it to the Bank system for authorization. However, there is no mechanism which could tell that the card is authentic/original and the magstripe data is easy to copy to another magstripe card.
Then comes the chip technology or EMV. However not until DDA was introduced, the chip is also prone for duplication because of the data in the card is just static data (SDA), although in my opinion it will be difficult to trick the online transaction. Also there is called CVM list, Cardholder Verification Method. It is a list of verification need to be done to verify if the cardholder is legitimate.
Wait a minute, what is the relation of this explanation compared to the title of the article?
Well, as far as I know, there is no difference in between credit and debit card in term of technology used. For credit card maybe there is, for example there is COTA; Cumulative Transaction Amount or COTN Cumulative Transaction Number, which is the total amount and no of transactions summed by offline transaction. However it is actually up to the issuer/bank to choose which profile they want for their customers. For debit, most -if not all- of the transactions are online, because it needs to check the balance before authorizing the transaction.
However the clear different between credit and debit is not on the card, but at the settlement by the bank it self. While the debit is PAY NOW and credit is PAY LATER. And it is up to the bank's policy to either setup the late fee, interest and so on.
This blog will talk about the technology of EMV/security/chip/smart card itself and mostly related to payment. This blog is not made to support any implementation of Riba in any forms. Period.
