Sayyiduna Hakeem ibn Hizaam Radiyallahu anhu reported that Rasulullah sallallahu alayhi wa sallam said, “The two parties to a transaction have the option (of cancelling it) until they part. If they are honest and disclose any defects, their transaction will be blessed, but if they lie and conceal defects, the blessing of their transaction will be erased.” [Sahih Muslim]
Question:
I would like to inquire about a practice followed by many Muslim shop owners, where pensioners are allowed to shop on pension day with the following arrangement: the pensioner is required to purchase groceries or other items worth a fixed amount, for example, ZAR 300. Upon reaching the checkout, the pensioner pays the full amount, and the shopkeeper then returns the remaining balance in cash.
Is this arrangement permissible according to Shariah, or does it constitute making one transaction conditional upon another? Additionally, is there a way to structure this transaction in a Shariah-compliant manner?
Answer:
This arrangement is not permissible in Shariah, as it effectively forces the individual to make a purchase to access their money, thereby subjecting one transaction to another. This type of conditional arrangement—where the sale is tied to the disbursement of cash—is not compliant with Islamic commercial principles. [Hidaayah 3/49, Musnad Ahmad #3783]
Instead, if the shopkeeper wishes to assist pensioners in accessing their funds, they may offer a separate service whereby cash is provided in exchange for a reasonable service fee, akin to the fee charged by a bank for cash withdrawal. Once the pensioner has received their money through this independent service, they are then free to shop or leave as they choose, without any obligation to purchase.
By separating the two transactions and removing the condition of purchase, the arrangement can potentially be brought in line with Shariah compliance.
And Allah Ta’ala Knows Best
Mufti Muhammed Hamza Farooqui
Mufti Taahir Hansa
Fatwa Department
Jamiatul Ulama (KZN)
(The answer hereby given is specifically based on the question asked and should be read together with the question asked. Islamic rulings on this Q&A newsletter are answered in accordance to the Hanafi Fiqh unless otherwise stated.)