17.5% is based on per annum. For marketing purposes, the banks nowadays quote rates like 1% or 1,5% per month. But like you said, it is the debtor who failed to understand and actually most of them don't even bother to read the Terms & Conditions and or the example on interest calculation in their monthly statement.

Anyway, if you ask me, 13.5% - 17.5% is still freaking high even if it is not compounded.

Also, it is the same for personal loan where the effective interest rate is higher than that quoted in the bank brochures.

To all credit card holders, always settle in full every month.

And just to add, if you fail to make payment, you be slapped with late penalty charges which will also be imposed interest charges the following month and interest charges begins on the the day you made the transaction.

well, technically they are right in away, they don't call it compound but Profit Charges But you still be charged the same monthly rate as non islamic cards.

To All:
I have done a sample calculation on interest charges imposed onto outstanding balances. Click here to read my article Credit Cards Are Cash Cow For Banks. Are You Working For the Banks.

Well, good is you need to use the credit facility but bad since you'll be imposed interest on your new transactions too.

Those of you who are looking for credit card interest calculator and duration to settle outstanding balance, click here to me article where I gave examples of different credit card interest calculators.