CARA® Credit Card

According to the Islamic rules and instructions of Central bank of Iran, credit card is a type of financing provisioning in the form of modern and electronic way, which is applying in the framework of Islamic Contracts. This card, which granted by bank or financial institutions offers customer the option to make purchases from sale terminals and online stores. In CARA Credit Card System, the management of all credit profiles, account settlements, calculation of bank or financial institution commitments for various types of cards as well as customer commitments can be calculated and monitored in customer basis. 

It should be noted that CARA credit card system has the ability to manage all provisioning and settlements according to Islamic rules and riba free Islamic banking instructions. In this case, granted credit financing application of this system is performed in the initial period of the loan in form of Qard-al-Hasanah and in secondary period as the form of other Islamic installment contract such as installment sales, Jualah and Murabaha.

Key Features

  • Three layers design and Service-Oriented architecture (SOA)
  • Java Technology
  • Flexibility and capability to integrate with any other third part system
  • Comprising of complete internal accounting system with different accounting relations based on main accounts and various type of certain or accrual fee separation

 Unique Features

  • Credit card profile management according to Islamic contracts and Central Bank instructions
  • Credit card transaction processing
  • Customers credit scoring, account settlement and debt collection in bank branch
  • Automatic procedures management to perform processes and services in certain orders
  • Various fee management
  • Statistical and executive reports management
  • Log and system events management




Applied Islamic Principals

Qard-Al-Hasan or Gratuitous Loan Qard-Al-Hasan is a contract wherein a party (the lender) gives a part of his own property to the other party (the borrower). Based on this contract, the borrower is the owner of the property for a specified period in the contract and after the termination of the contract, the borrower is obliged to return the lender in kind or, where not possible, its cash value.

Murabaha is a contract of deferred payment is used for purchase of goods, raw materials, requirements to start a production, or other products based on the existing credit. Here, the goods are sold through deferred payment at a fixed and clarified price to customer, in a way that the all the price or part of it will be paid in equal or non-equal installments. In other words, the customer buys certain goods as the bank representative and then the bank sells the goods with a higher price to the customer. In this contract, the bank declares honestly and specifically the price of the goods and its own profit margin for the customer, and the customer pays the cost and the profit in due date.

Musharaka / Partnership
Financing Musharaka contract is a partnership which aims to finance a project in a given time. The bank enters in a partnership contract with the customer and both have shares. Apart from the management costs, the generated profit or any possible loss will be divided between the two parties in proportion to each partner’s share of capital. Musharaka contract is much similar to the conventional contract of Joint Venture Financing.