ISLAMIC GUIDELINE REGARDING THE OPERATING POINT OF SALE BANKING SYSTEM (POS)

ABSTRACT This paper explores the Islamic guidelines pertinent to the operation of Point of Sale (POS) banking systems, focusing on their compliance with Shariah principles. As the use of electronic payment systems becomes increasingly prevalent in the financial landscape, understanding the intersection of technology and Islamic finance is crucial. The study outlines key aspects of POS transactions, emphasizing the prohibition of riba (usury), the necessity for transparency, and the avoidance of gharar (excessive uncertainty) in financial dealings. The research highlights the importance of ensuring that all transactions processed through POS systems involve halal (permissible) goods and services, thus maintaining adherence to Islamic ethical standards. Additionally, the integration of Zakat (obligatory charity) collection features within POS systems is discussed, showcasing how technology can facilitate charitable giving in accordance with Islamic principles.