a plastic card the same size as a credit
card, with a magnetic strip, chip and other identifying details.
The difference is that a debit card is linked electronically to a bank account and not a
credit card account. Therefore, any money spent is money that the buyer already
has in his or her bank account; it is not accruing debt (unless the purchase
sends the buyer into overdraft).
Attempting to make a purchase when the bank account has insufficient funds
could result in the sale being declined, rather like when a credit card reaches
its credit limit; alternatively it could send the buyer into an unauthorised
overdraft, with possible fees incurred.
debt?Money owed by one
person or organisation to another person or organisation. It does not
necessarily have negative implications, as a situation of debt (borrowing) can
be an essential part of investing. However, excessive debt can cause
insurmountable problems both to the debtor and to the debtee. Islam is very clear in its treatment of
debt. It is permissible to get into debt as long as the debtor has the ability
to pay it back in agreement with the terms of the contract. In other words,
debt is allowed (indeed, inevitable if it is taken to its ultimate
interpretation of money owed, even for a few hours) but it must be treated with
respect, responsibility and care. Interest,
however, is another matter, and interest-bearing debt is forbidden in Islam.
That is why a whole new industry, Islamic finance, came into being.
debtee?A person or
organisation who is owed money. A creditor.
debtor?A person or
organisation who owes money to another person or organisation.
deen, dean, din?Religion,
faith, belief, way of life.
default?To fail to
repay a debt or an
instalment of a debt as per the contract. Default is technically a breach of
contract, so even an instalment payment one day late can be considered default
and punitive action can be taken against the late payer. Complete cessation of
repayments can cause the wheels of collateral
recovery (in a secured
loan) to be put in motion, or legal means can be used to recover
the debt (for example, bailiffs). However these tend to be last resorts, and it
is often preferable for all parties concerned to re-negotiate the repayment