ADCB 365 Islamic Cashback Covered Card

Abu Dhabi Commercial Bank (ADCB) is a prominent name in the UAE financial sector and offers a comprehensive range of financial products. Among these offerings is a diverse selection of credit cards designed to cater to the needs of its clientele.

This article will provide the details of one such product – the ADCB 365 Islamic Cashback Covered Card. Leveraging the Islamic financial principles of Murabaha and Wakala, this card provides users with a unique blend of financial flexibility and benefits. Furthermore, in this write-up, we will explore the features, benefits, eligibility criteria, required documents, and other intricate details of how the ADCB 365 Islamic Cashback Covered Card operates.

How ADCB 365 Islamic Cashback Covered Card Works?

The ADCB 365 Islamic Cashback Covered Card operates on the principles of Murabaha and Wakala, which are integral components of Islamic banking.

Here is a simplified explanation of how the ADCB 365 Islamic Cashback Covered credit card works -

• The bank provides users with a credit limit under the Commodity Murabaha structure.
• Customers purchase a commodity from the bank at a cost-plus-profit (Murabaha) basis.
• Users sell the commodity to obtain cash from the sale proceeds.
• The cash is then deposited into a Wakala Investment Account (WIA), which generates profit for the customer.
• Customers are required to pay a fixed monthly Murabaha profit while also earning profit under the WIA.
• The profit earned under the WIA can offset the monthly Murabaha profit, and any remaining shortfall is paid by the customer using their own funds.
• When customers use the card, they are essentially using their own funds, making it a 'Covered Card' backed by the WIA.
• If users repay the utilised amounts by replenishing the WIA, the bank may provide a rebate or gift to cover any shortfall if the payable monthly Murabaha profit is higher than the earnings from the WIA.
• When purchases are made using the Covered Card, the balance in the WIA decreases.
• If the balance falls below the required level, the outstanding amount must be paid before the due date.
• If the total outstanding amount is not settled by the due date, the customer will be required to pay the monthly Murabaha profit amount.
• This system ensures compliance with Islamic principles while offering customers flexibility and benefits.

Features and Benefits of ADCB 365 Islamic Cashback Covered Card

Given below are the key features and benefits of ADCB 365 Islamic Cashback Covered Card -

• ADCB 365 Islamic Cashback Covered Cards offer a percentage of cashback every month on various categories of spending, such as dining, groceries, fuel, and utilities as tabled below:

Utilities, Telecom, Fuel, and Salik	3%
Dining, including online orders	6 %
Groceries	5 %
Other retail spends	1 %

• To qualify for the cashback rewards offered by the ADCB 365 Islamic Cashback Covered Card, you must meet a minimum spending threshold of AED 5,000 within a given calendar month. Upon meeting this requirement, you can earn up to AED 1,000 in cashback rewards per month.
• New cardholders can also benefit from a welcome bonus of AED 365. To receive this bonus, you must spend at least AED 5,000 using your card within the initial 45-day period after card issuance. The welcome bonus will be credited to your account as cashback within 90 days of the card's activation (provided the spending requirement is met).
• No annual fee for the first year. Starting from the second year of card membership, an annual fee of AED 383.25 (inclusive of VAT) will apply to the primary credit card.
• Profit-Free Period:
  1. A period of 20 to 25 days is granted from the transaction date, during which no profit is charged.
  2. This profit-free period is subject to payment in full of the total amount due by the payment due date.
  3. However, certain exceptions to the profit-free period are applicable - if the previous month's balance has not been fully cleared, for certain transactions like cash withdrawals, and more.
• Protect your ADCB 365 Islamic Cashback Covered Card with Takaful Credit Shield.
• Minimum Spent Due:
  1. The minimum amount that needs to be paid is either 5% of the total amount owed to ADCB or AED 100, whichever is higher.
  2. The 5% includes the sum of the full amounts owed for the annual membership fee, any monthly instalment amounts, any over-limit amount, and 5% of the principal balance.
  3. If the total outstanding amount is less than AED 100, it must be paid in full.
• You can use convenient payment methods while using your credit card. Some of the prominent methods include Apple Pay, Samsung Pay, G Pay, Fitbit Pay, Garmin Pay, SwatchPay, and more.
• With the ADCB 365 Islamic Cashback Covered Card, you can enjoy significant savings on your travel accommodation. Specifically, you can benefit from a discount of up to 12% on over 985,000 hotels and vacation rentals across the globe. This offer is made possible through a partnership with Agoda, a leading online travel booking platform. To avail of this promotion, bookings must be made on specific properties that are part of the designated merchant list on the Agoda platform. You can access these exclusive deals by making your reservations through the dedicated Agoda portal at agoda.com/visamena.
• Control your credit card using the ADCB mobile banking application. The unique features of the application include the following –
  1. Blocking transactions
  2. Setting daily and monthly spending limits
  3. Blocking in-store transactions
  4. Blocking ATM cash withdrawals
  5. Blocking foreign transactions

  

• With ADCB 365 Islamic Cashback Covered Card, you can easily convert school fee payments into a 0% profit payment plan.
• Cash withdrawal limit of the card – 60% of the available credit limit.
• Payments are required to be made within 25 days from the statement of account date.
• FlexiPay feature allows you to manage your retail expenses efficiently. By utilising this feature, you can repay your retail balances in manageable monthly payments and enjoy greater flexibility and control over your finances.
• The Balance Transfer feature on the ADCB 365 Islamic Cashback Covered Card offers you the convenience of consolidating your credit card debts. By using this feature, you can transfer your outstanding balances from credit cards issued by other banks to your ADCB 365 Islamic Cashback Covered Card, potentially taking advantage of lower interest rates or better repayment terms.
• Known as the 'PayOrder Facility', this feature allows ADCB 65 Islamic Cashback Covered Card users to obtain cash against their available credit limit. You can then repay this amount in easy, manageable instalments over a period of up to 12 months, providing additional financial flexibility when needed.

Profit Rate on ADCB 365 Islamic Cashback Covered Card

ADCB 365 Islamic Cashback Covered Card issued before January 1, 2023, comes with a monthly profit rate of 3.25%. On the other hand, the profit rate is 3.69% for the cards issued from January 1, 2023.

Let's look at an example to understand how the profit rate works on an ADCB 365 Islamic Cashback Covered Card:

Assuming you have the following details:

• Profit rate: 3.69% per month
• Statement date: 5th of each month
• Payment Due Date: 30th of each month

Now, let's say you made a purchase of AED 1,800 on June 4, 2022. If you choose not to settle the total outstanding amount on or before the payment due date and continue to pay only the minimum payment due without making any new transactions, it would take you approximately 30 months to fully settle the total outstanding amount, including the net profit due.

Here's how the calculation would look -

• Total outstanding on June 5 (Statement of Account date): AED 1,800
• Payment made on July 30 (Minimum Payment of 5% or AED 100, whichever is higher): AED 100
• Total outstanding carried forward: AED 1,700 (1,800 - 100)
• Profit calculation for July 5 statement:
  1. On AED 1,800 from June 4 to June 29: AED 57.56
  2. On AED 1,700 from June 30 to July 5: AED 12.54
• Total profit charged on July 5 Statement of Account: AED 70.11

Note: The mentioned calculations are subject to the specific profit rate and terms of your ADCB 365 Islamic Cashback Covered Card.

How to Apply For ADCB 365 Islamic Cashback Covered Card?

To get an ADCB 365 Islamic Cashback Covered Card, you have the option to seamlessly apply through Policybazaar.ae, a reliable and trustworthy online platform. Applying for the card through Policybazaar UAE offers several benefits like -

• Convenience: Applying online through Policybazaar UAE allows you to complete the application process from the comfort of your own home or anywhere with an internet connection.
• Time-saving: By using an online platform like Policybazaar UAE, you can save time by avoiding the need to visit a physical branch or make multiple phone calls to apply for a card.
• Wide Range of Options: Policybazaar UAE provides access to a variety of credit card options, including the ADCB 365 Islamic Cashback Covered Card, giving you the opportunity to compare and choose the card that best suits your needs.
• Transparent Information: On the Policybazaar.ae website, you can find comprehensive details and key features of the ADCB 365 Islamic Cashback Covered Card, allowing you to make an informed decision.
• Personalized Assistance: After submitting your application, one of Policybazaar.ae’s representatives will contact you to guide you through the further process, ensuring that you receive personalised assistance and support.
• Expert Advice: Our team consists of professionals who can provide expert advice and guidance regarding the application process, eligibility requirements, and any queries you may have about the ADCB 365 Islamic Cashback Covered Card.
• Secure and Trustworthy: Policybazaar.ae is a reputable platform that prioritises the security of your personal information, ensuring a safe and trustworthy application process.

To apply for the ADCB 365 Islamic Cashback Covered Card via Policybazaar.ae, you simply need to visit the official website of Policybazaar UAE. You can then navigate to the credit cards section and fill out the lead form with the necessary details. Once submitted, you will be redirected to the credit card quotes page, where you can find key features and details of the card. Click on the apply button, and a representative from Policybazaar.ae will contact you to assist you further with the application process.

Fees and Charges Associated with ADCB 365 Islamic Cashback Covered Card

Tabled below is the schedule of fees and charges associated with ADCB 365 Islamic Cashback Covered Card -

Aspects	Fees and Charges
Annual membership fees for the card	Free for the first year, then AED 383.25 for Aspire, Excellency, and Privilege club
Monthly profit rate (issued before January 1, 2023)	3.25%
Monthly profit rate (issued from January 1, 2023)	3.69 %
Cash withdrawal fee	AED 105 or 3.15% (whichever is higher)
Donation for late payment	AED 241.50
Balance transfer fee, pay order facility or instalment plans	Up to 3.25%
Duplicate statement fee	AED 26.25
Card replacement fee	AED 78.75
Returned cheque fee	AED 157.50
Islamic credit shield (takaful)	0.9345% of the total outstanding balance
Outstation cheque processing fee	AED 21
Copy of sales voucher	AED 26.25
Exchange house payment charge	AED 5.25 (per transaction)
Liability or no liability letter	AED 52.50
Foreign currency transaction margin	2.99% of the total transaction amount
Foreign transaction fee (AED currency)	2.1% of the total transaction amount

Factors to Keep in Mind While Applying For ADCB 365 Islamic Cashback Covered Card

Keep the following points in mind while applying for ADCB 365 Islamic Cashback Covered Card –

• The profit rate on the ADCB Islamic Banking Covered Cards is fixed and not subject to change. However, the bank can modify the terms and conditions and fees associated with the card with a notice period of 60 days. Any such changes will be communicated to the customer through their registered email, SMS, or other means specified by ADCB Islamic Banking.
• In the event of card cancellation outside the product return policy, the annual membership fees shall not be refunded. 
• Your account may go into arrears if you fail to make payments on the ADCB 365 Islamic Cashback Covered Card. This may also negatively impact your credit rating, potentially limiting your ability to access financing in the future.
• The ADCB Islamic Banking's ISSC (Islamic Sharia’s Supervisory Committee) has determined this Covered Card product to be Sharia compliant. However, it is the responsibility of the customer to assess the product's compliance with Sharia principles before availing of the Covered Card facility.
• ADCB 365 Islamic Cashback Covered Card is designed for personal use and may not be used for organisations or businesses.

Let’s take a look at the next section of the article and see what others have been asking about ADCB 365 Islamic Cashback Credit Cards.

Other ADCB Credit Cards
ADCB Etihad Guest Infinite Credit Card	ADCB Touchpoints Infinite Credit Card
ADCB Etihad Guest Signature Credit Card	ADCB Touchpoints Platinum Credit Card
ADCB Etihad Guest Platinum Credit Card	ADCB Touchpoints Titanium/Gold Credit Card
ADCB Traveller Credit Card	ADCB SimplyLife Credit Cards
ADCB LuLu Platinum Credit Card	ADCB LuLu Titanium Credit Card
ADCB Betaqti Credit Card	ADCB Islamic TouchPoints Infinite Credit Card
ADCB Islamic Classic Credit Card	ADCB Islamic TouchPoints Platinum Credit Card
ADCB Islamic Gold Credit Card	ADCB Islamic TouchPoints Gold Credit Card
ADCB Islamic Platinum Credit Card	ADCB Islamic Etihad Guest Infinite Credit Card
ADCB Islamic Etihad Guest Platinum Credit Card	ADCB Islamic Etihad Guest Signature Credit Card

Frequently Asked Questions