An islamic credit card is firstly, Shariah compliant. The main differences between Islamic credit cards and conventional credit cards are the prohibition of gharar and riba. Gharar is overcharging, while riba is interest. There are no compound charges as overcharging is also prohibited under Shariah law. Secondly, Islamic credit cards do not charge interest. Any interest or riba is strictly prohibited under the Shariah law. Therefore, what Islamic banks do is provide Islamic credit cards by charging for their service, which is known as the ?profit charge?, and only charged if there is an outstanding amount that is not paid within the grace period. Thirdly, an Islamic credit card offers takaful coverage. Aside from that, Muslims will also have the added convenience of paying being able to pay their Zakat with an Islamic credit card.