With the iFreedom Plus Mastercard, holders load up their card with cash in advance, up to $6,000. Each purchase draws down on the account without accruing interest.Mastercard gets a $50 fee for each card, and they get the transaction fee that merchants pay them to process payments via card. Also, they get 95 cents for each "reload" of the card. Mastercard is basically just doing the same thing that any prepaid Visa card is doing.The concept follows the Islamic principle that finance should be backed by owned assets. It was approved by a panel of Muslim religious scholars, Mr. Kalair said.
"You're spending money you actually own," he said. "There's a certain degree of stress when you use a credit card. On this one there isn't."
Cardholders pay $50 for two years of use and each transfer of cash on to the card costs 95 cents.
And since the new product doesn't actually involve credit, applicants are approved without a credit check.
MC also gets the float on the money deposited——the infidels still get interest.