Cashback Covered Card Terms and Conditions

Cashback Covered Card Terms and Conditions (Download)

1.1. Definitions

“Bank” or “the Bank” means Sharjah Islamic Bank or SIB.
“Card(s)” means the SIB Cashback Covered Card.
“Cardholder(s)” means the holder of SIB Cashback Covered credit card.
“Calendar Month” means calendar month according to the Gregorian calendar.
“Accelerated Categories” means spend categories as decided by the Bank earning higher cashback amount including wallets, card on file and e-commerce payments.
“Cashback” means an amount in AED, earned on Qualifying Transactions amongst different Categories at rates decided by the Bank from time to time at its absolute discretion.
“Qualifying transactions” means transactions eligible for earning cashback as decided by the Bank.
“Customer” means a person who is banking with SIB and has been underwritten based on the documents submitted and has been termed as primary Cardholder.
“Enrolment Date” means the date of the Card issuance.
“Annual Fees” means the fees charged to the primary Cardholder’s Card upon the issuance of the Card and on every anniversary.
“Merchant Category Codes (MCC)” means a 4 digit numeric code which is used by the payment scheme “MasterCard” to classify merchants and businesses by the type of goods or services provided.
“Monthly Total Spends” means the Calendar Month total cumulative retail spends , excluding non-qualifying transactions, as detailed in the Program terms and conditions.
“Program” means governing conditions for customer enrollment, earning, redeeming and the cancellation of cashback points.
“Posting Date” means the date specified in a Statement of Account when a Card Transaction is received by the Bank and posted to the Card Account.
1.2. Interpretation (1) The Program compliments, but does not in any way amend the Covered Credit Card Agreement between the Bank and the Cardholder signed by the Customer at the time of applying for a Covered Card or any later amendments published on www.sib.ae , and any term referenced but not defined herein would be interpreted in accordance with the agreement pertaining to Covered credit cards entered between the Primary Cardholder and the Bank (the “Covered credit card Agreement”). (2) Nevertheless in the event there is any contradiction between these Terms and Conditions and the Covered credit card Agreement, then terms of Covered credit card Agreement shall prevail.
1.3. The Program Specification Cashback Covered credit cards allow eligible Cardholders to accumulate Cashback on Qualifying Transactions posted on their Cards during the Calendar Month and as per the maximum amount set by the Bank from time to time, as detailed in Cashback section (Article 4) given below.
Only Qualifying Transactions within the specified categories and posted in the Card statement during the Calendar Month by the Bank would be considered eligible for the Program. Any unbilled amount will not be considered for Cashback calculation in the statement till it is confirmed and posted on cards account.

2. Eligibility

2.1. The Program is open to Cardholders as determined by the Bank from time to time whose Cards are not blocked, and are in good standing as determined by the Bank at its sole discretion.
2.2. Cashback earned on the transactions made by using the Supplementary Card(s) will accrue to the account of the Primary Cardholder.
2.3. The Bank has the right to change any of the cashback Program from time to time after notifying customers with the changes through its communication channels.

3. Enrolment

3.1. Once the Card is issued, the Cardholder shall be automatically enrolled in the Program.

4. Cashback

4.1. There is no minimum spend amount required to start earning Cashback. The Cardholder will earn Cashback as a percentage of the transaction value of the Qualifying Transactions according to the category where the transaction falls into.
4.2. Non-Qualifying Transactions which are posted in the Card Account will not earn any Cashback.
4.3. The percentage of Cashback earned on the qualified transactions will be limited to Monthly Total Spends without exceeding the card limit as detailed in Table 1 below. Any excessive spends over the assigned card limit will not be considered for Cashback calculation.
4.4. Cashback earned per Customer per accelerated categories will be capped to AED 300 per calendar month. There is no maximum cashback earned on other spends categories (up to Covered Card limit spends)

Cashback Classification	Category	Cashback Rate	Monthly Cap
Accelerated	Online purchases, saved cards on websites and apps payments, Samsung Wallet and Apple Pay (excluding utility ,telecom, government, supermarket, hypermarket, & education payments; whether made inside or outside the UAE,)	10%	AED 300
Standard	International Retail Spends (spends made outside UAE in foreign currency)	2%	No Cap
Standard	Domestic Retail Spends (spends made in UAE)	1%	No Cap
standard	Utility ,telecom, government, supermarket, hypermarket, & education payments (whether made inside or outside UAE excluding transactions made through Online & Mobile Banking)	0.5%	No Cap

4.5. Utilities (Water , electricity, gas , etc…) , Telecom, Government and Education payments will be identified based on Merchant Category Codes (MCC) as defined in MasterCard scheme and provided in the Table 2 below

Category	Merchant category code "MCC"
Utility & Telecom	4900, 4813, 4814
Government	9399, 9402
Education payments	8299, 8220, 8211
Supermarkets	5411

4.6. MCC classification is decided by MasterCard and may vary from time to time. The Bank will not entertain, or be liable for, Cashback claims made by the Cardholder due to incorrect classification or interpretation of MCCs.

4.7. The percentage rate of Cashback and the maximum value of Cashback earned in a Calendar Month will be determined by the Bank and may be changed by the Bank at its sole discretion and shall be published in the Bank’s website – www.sib.ae
4.8. The Bank may, at its sole discretion, amend the Cashback Categories or the MCC used to identify Qualifying Transactions for earning Cashback.
4.9. All Qualifying Transactions within Cashback Program are listed as below: 1. Card-not-Present transactions including wallets, card on file, e-commerce transactions. 2. Card-Present transactions at Retail merchants e.g. transactions at point-of-sale (POS) terminals 3. Utility Bill Payment transactions at merchant websites (e.g. Etisalat, DU, DEWA, SEWA, etc. where payment is made directly at the merchant store or on the respective websites or kiosks)
4.10. The following transactions are not qualified for any Cashback and will be termed as Non-Qualified transactions: 1. All transactions other than Qualifying Transactions 2. Utility Bill payments (e.g. Etisalat, DU, DEWA, SEWA, ADDC, RTA & other payments) made through the Bank's digital channels e.g. SIB Online Banking, SIB Mobile Banking (SIB Digital App) 3. Balance Transfers & Easy Cash facilities availed 4. Takaful / Insurance charges levied by the bank 5. Fees & Charges levied by the bank 6. Cash withdrawal transactions 7. Any adjustment entries (if any) levied on the card by the bank or any other transactions determined by the Bank from time to time
4.11. In the event a Qualifying Transaction is reversed or refunded at a later date, these transactions will compensate the Qualifying Transactions executed in the Calendar Month in which the reversal has been processed by the merchant in accordance to the category of spend and shall also compensate the Cashback earnings for the same Calendar Month. The reversal of cashback may exceed the original cashback awarded to customer in certain circumstances e.g. max cashback cap was applied.
4.12. Cashback is not transferable to any other person or entity. The redeemed Cashback shall be credited to the Covered Card account. The Cashback cannot be transferred to any other customer account or card account within the bank.
4.13. Cashback earning in a Calendar Month may be restricted to the value of Qualifying Transactions, up to the credit limit assigned to the Card. Example, if the credit limit on the Card is AED 20,000, only Qualifying Transactions of a total value of AED 20,000 in a Calendar Month would be eligible for Cashback.
4.14 Cashback amount will be awarded in the form of Cash point, that is 1 Cash point = 1 AED, hence if the customer has 1,000 cash points, he can redeem the same for AED 1,000. When redeemed the equivalent value will reflect as a credit in the statement of the card.

5. Redemption & Forfeiture

5.1. The Cardholder can redeem the Cashback earned on the card through Bank’s Contact Centre, its Online Banking platform and its Mobile Application. Only the Primary Cardholder may request redemption of Cashback.
5.2. The minimum Cashback amount that is allowed to be redeemed in any instance is AED 100.
5.3. The Bank may take up to three (3) working days to credit the Primary Cardholder’s account with the Cashback redemption if the request is initiated through the Contact Center. If the Cashback request is made through digital platforms then Cashback amount will be credited by the end of day.
5.4 The bank has the right to forfeit all Cashback earned in case of card delinquency more than 90 days or upon card closure for any reasons.
5.5. Cashback earned on a transaction will have an expiry of thirty six (36) months from the date the cashback earned. The Bank may at its sole discretion amend or change the period of expiry, provided that Cardholder is informed through various communication channels (SMS, emails, online Banking, etc.)
5.6. Cashback earned and not redeemed within the specified period, will be forfeited and will be deducted from the accrued Cashback balance.
5.7. The Cashback amount shall be credited towards the Card outstanding however it shall not offset any minimum payment required to be paid according to the last statement issued by the Bank.
5.8 The Card must be in good standing (not blocked/suspended) when a request for redemption is made.
5.9 The Cashback calculated shall be rounded down to the nearest decimal.

6. General

6.1. The Bank reserves the right to cancel, suspend, change or substitute the Cashback or the Cashback conditions or the basis of computation of Cashback or the terms and conditions of the Program at any time, post providing appropriate intimation to the Cardholder through various communication channels (SMS, emails, online Banking, etc.).
6.2. Any variation, alteration, modification, and/or amendment to the terms and conditions shall be published on the Bank’s website www.sib.ae and shall supersede the earlier terms and conditions communicated to the Cardholder.
6.3. Fraud and/or abuse relating to earning and redemption of Cashback in the Program may result in forfeiture of the Cashback as well as termination and cancellation of the Card.

KEY FACTS: CASHBACK COVERED CARD (Download)

Thank you for applying for Sharjah Islamic Bank Cashback Covered Card. To ensure transparency regarding the Bank offer, we request you to please go through the declaration given below and sign your acceptance for the same. Should you require any further information, please contact our 24-hour Call Centre team on 065999999 or visit our website www.sib.ae

Type of Cashback Covered Credit Card Requested:

· SIB Cashback Titanium Covered Card

Card Offerings & Schedule of Charges:

Card Offerings
Category	Cashback Rate	Monthly Cap
Online purchases, saved cards on websites and apps payments, Samsung Wallet and Apple Pay (excluding utility ,telecom, government, supermarket, hypermarket, & education payments; whether made inside or outside the UAE,)	10%	AED 300
International Retail Spends (spends made outside UAE in foreign currency)	2%	No Cap
Domestic Retail spends (spends made in UAE)	1%	No Cap
Utility ,telecom, government, supermarket, hypermarket, & education payments (whether made inside or outside UAE)	0.5%	No Cap

Schedule of Charges
Cashback Titanium
Annual Fee	Free for the first year, AED 199/- , Eligible for annual fee waiver If total retail spends is AED 10,000 in the previous year.
Supplementary Annual Fee	Free
Card Replacement Fee	AED 78.75
Late Payment Fee	AED 236.25
Additional Statement Fee	AED 47.25
Cash Withdrawal Limit	80% of Card Limit
Cash Withdrawal Fee	3.5% of transaction amount (Min AED 103.95)
Minimum Repayment	5% of utilized amount
Investment Wakala Expected Profit Rate/Month	3.49%
Murabaha Profit Rate/Month	3.49%
Administration Fee for non-AED transactions	2.5% of transaction amount (excl. Mastercard Fees)
Copy of Purchase Slip	AED 68.25
Rejected Standing Order Due to Lack of Funds	AED 26.25

*Charges are VAT inclusive

Required Documents:

Schedule of Charges
Salaried Customers:	Self Employed Customers:
· Application Form	· Application Form
· Passport and Emirates ID Copy	· Passport and Emirates ID Copy
· Valid Residence Visa for Expats	· Proof of Income
· Proof of Income	· Valid Trade License
· Salary Slip	· Memorandum of Association/ Partnership Agreement/ Power of Attorney (If applicable)

Key Facts on using Covered Cards

(Important to read carefully and understand)

1. It is advisable to always make monthly payments more than the minimum due requested according to the last statement issued by the bank in order to replenish your Wakala account ( available balance to use) rather than making minimum payment that mainly covers the fees and charges on the Card and only small portion remains as an available balance to use.

2. In case you choose to make only the minimum payment by the due date, then the bank will keep calculating the Profit ( net between the Murabaha and Wakala Profits) on daily basis till the full Wakala outstanding (Card available balance) is covered. This includes new transactions made after the statement issuance.

3. Please ensure that you round up the total dues requested by the bank and pay the exact amount before or on the due date to avoid paying the profit that is calculated on daily basis until the payment date. To clear any doubt, below example provides illustration on this payment scenario.

• If the cover is AED 10,000 and you used the AED 10,000 (out of which
AED 3,000 is cash withdrawal):
a. If you pay AED 10,000, you will pay to the bank profit for AED 3,000
b. If you pay less than AED 10,000, you will pay profit for the full AED 10,000

• If the cover is AED 10,000 and you used AED 8,000 as retail purchases:
a. If you pay AED 8,000, you will not pay profit.
b. If you pay the minimum up to 7,999, (or fails to pay any amount), you will pay to the Bank profit for AED 8,000 = {AED 10,000 -AED 2,000}.
c. If you fail to pay any amount, you will pay to the Bank profit for
AED 8,000 and LPF (donation) charges shall apply.

4. If you will pay the total outstanding on or before the due date, SIB will credit the difference between the Murabaha profit and the Wakala profit as bonus, and in this case no profit to be paid by you to the bank.

Warning! Continuous failure to make the regular payments on time, will expose you to further charges (Late Payment to Charity) and may lead to further legal action by the bank.

I have understood the following information for the selected Cashback Covered Card :

• Product details – Product features, Cashback offer, payment terms and documentation requirements.

• Cashback Points will be awarded on the card based on the spends made as per the transaction category and awarded on a monthly basis after the issuance of statement.

• The bank, at its discretion, has the right to change the fees or any offer terms at any time without obtaining customer’s written consent, provided that such a change to be communicated to the customer through means of communication that guarantee customer has been advised. If the bank does not receive any objection from the customer within 60 days from notification date, this will be considered as customers’ consent. However; in case the customer doesn’t agree to the change made by the bank, the two parties may agree to settle the relevant card liability or shift to another product.

• Once the Covered Card is received by the customer, the customer shall be liable to make any payments on the card as requested by the bank via SMS or monthly statements. To avoid any doubts regarding payments date, it is advisable to contact the call center upon card activation to check this information.

Important terms related to Covered Cards

Card Usage Account
means (Covered Card) All Card Account transactions’ entries that shall be transferred to the relevant Wakala Investment Account for any debit transactions made by the customer or charges on the card.

Murabaha Contract
means the Bonds Murabaha Contract embedded as part of the Covered Card application between the Bank and the Card Holder under which the Bank had sold to the Card Holder, for the Sale Price, identified and specific number of Bonds.

Murabaha Profit
means the monthly installment due that is supposed to be paid by the Card Holder over the period of the Murabaha Contract. This installment is equal to:

Murabaha Principal amount (Covered Card limit) * Murabaha Profit Rate
* 360 / 12 * number of days in a month.

Collect on Monthly basis, such amount is fixed and shown as debit value in customer statement.

Charged Profit
means the net amount between the Murabaha and Wakala Profit before Wakala Investment account. as Arabic term is available.

Wakala Investment Account
means the Wakala Investment Account opened purposely to represent the Card usage cover. The sale proceeds of the bonds purchased under Murabaha will be deposited in the Wakala account and customer can utilize every month.

Wakala Profit
means the profit generated to the customer from its Wakala Investment Account, calculated, on monthly basis, as:

Wakala unutilized balance * Wakala Profit Rate * 360 / 12 * no of days in a month. (the amount of this profit is variable based on the unutilized Balance in the Wakala Investment Account and shown as credit value in customer statement.

Bonus
means the rebate given by the Bank as result of paying the full outstanding as requested in the Statement of account issued by the Bank on monthly basis.

Cooling-off Period:

The Customer shall have the right to have a Cooling-Off period, of 5 complete business days commencing from the time of signing the contract , wherein the customer may opted to terminate the contract within the cooling off period, the bank has to refund to it any related Fees and direct costs already incurred by the customer. However, if the customer, within the cooling off period, starts using the product and availed itself, in any manner, of the products services , its right in the cooling off period will cease. The customer may also waive its right in the cooling off period by its written consent.
Alternatives to Covered Cards:

There are other products offered by the Bank that may suit your needs, however they do not have the benefits of Covered Card

Debit Card:
You can make purchases using your Debit Card that is linked to your current/saving account, however Covered Card usually allows you to make purchases with higher limit than available funds in the current/saving account. You will enjoy a free repayment period of up to 17 days from statement issuance date which is known by the ”Due date”. Also there is a loyalty program available on Covered Card versus the Debit Card where you can earn the points against your purchases, thereby you can save more.

Personal Finance:
This product is designed for medium or long term borrowing needs with higher amount than a Covered Card limit. For daily or short term needs, a Covered Card is a more convenient and recommended solution. Also, Covered Card limit is a revolving limit versus Personal Finance which is for one time use.

Important Information about Bank Procedures:

Delinquency (unsettled dues) on the Covered Card
• In case of any delinquency on the card (missing due date payment), the Bank has the right to cover any outstanding dues from any existing
account held at the Bank. This includes any current or saving account or fixed deposit.

• The Bank has the right to contact you by our Collections Department and remind you of the total dues that you have to cover to avoid further delinquency or affecting your history in AECB (Al Eithad Credit Report).

• In case you are totally unreachable, the Bank shall contact the reference details available in our records in order to reach you.

Covered Card Cancellation
• Before placing cancellation request, you must ensure that the outstanding balance is entirely settled and no further dues to be paid to the Bank.

• Some transactions may appear after you make the payment which are not settled or delayed by the merchant or retailer. You will still be liable to make those payments.

• Once the outstanding balance is paid off please contact our call center to proceed with the cancellation process that may take up to 5 working days.

• In between, you may receive a call from our retention department to understand the reason of cancellation and resolve any issue pertaining to the card. In case you agree to keep the card, then request shall be dropped.

Your obligations to control fraud and action to be taken in case you suspect any fraud

1. Always keep your card and transactions details safe and never disclose card details (including includes username, passwords, OTP for online transactions) to any third party.

2. Beware of promotions with large prizes or discounts and contact the Bank for reporting or clarifying any doubt.

3. In case you receive any SMS of transaction that you have not made it yourself, please block the card immediately via our online or mobile banking application or contact our call center. Moreover, you would need to fill in a dispute form at our branch to allow us to investigate from our side.

For further details regarding your Covered Card, please check the detailed terms and Conditions available on the website. www.sib.ae

Application Processing and Approval:

I agree that:

· The information and documents, security cheque enclosed with the application form are true and correct and will become part of the banks record and will not be returned in case of rejecting the application.

· Sharjah Islamic Bank, UAE is entitled, at its sole discretion, to approve or reject the application of the Cashback Covered Card.

· By signing the declaration form, I have read, understood & agree to abide
by the terms and conditions as set out on the application form for Sharjah Islamic Bank Cashback Covered Card.

Name of applicant: ....................................................................................................................

Signature of Applicant: Date:

This Product has been approved by Internal Sharia’a committee basis the Islamic Rules of Murabaha and Wakala Concepts, and upon selling the proceeds of the Murabaha and depositing the same into the Wakala Investment account the Cashback Covered Card shall be issued.

Terms and Conditions