Charging a separate price for cash and credit
Category:
Business Dealings & Money Matters
According to Madhhab:
Hanafi
Reference:
1441-074
Question:
A
customer wants to purchase an item from me. he asks for the price. i offer him
two different prices based on his payment preference - 1. if paid for, some
time (eg weeks /months) after receiving the item. 2. if paid for on a
COD/within 1-2 days basis.
eg R100 if paid within three months of receiving the item or R80 if paid for
within 2 days of receiving the item.
Please advise upto this point, if this is acceptable and not considered
interest/haraam?
Taking it further....
Assuming the above is jaaiz, and we then proceed with the transaction.
Assume he agrees to the R80 COD option. - but now he defaults on this
arrangement , by not paying COD/within 1-2 days of receiving the item. He is at
fault in not abiding by the payment arrangements, can i now tell him that he
has defaulted on the agreed arrangement - and him knowing that it would be a
different price for payment out of the agreed arrangement - can I now ask for
R100 - would this be acceptable and not considered interest/haraam?
customer wants to purchase an item from me. he asks for the price. i offer him
two different prices based on his payment preference - 1. if paid for, some
time (eg weeks /months) after receiving the item. 2. if paid for on a
COD/within 1-2 days basis.
eg R100 if paid within three months of receiving the item or R80 if paid for
within 2 days of receiving the item.
Please advise upto this point, if this is acceptable and not considered
interest/haraam?
Taking it further....
Assuming the above is jaaiz, and we then proceed with the transaction.
Assume he agrees to the R80 COD option. - but now he defaults on this
arrangement , by not paying COD/within 1-2 days of receiving the item. He is at
fault in not abiding by the payment arrangements, can i now tell him that he
has defaulted on the agreed arrangement - and him knowing that it would be a
different price for payment out of the agreed arrangement - can I now ask for
R100 - would this be acceptable and not considered interest/haraam?
Answer:
In the enquired case, if the trader sells an item for a 100 rands cash or for 200 rands credit, then there is no problem with this type of offer provided that the deal that is going to be entered into is determined before it is entered into (that it is a cash deal or a credit deal). If the deal was closed for cash and the buyer fails to pay up as per agreement, the seller cannot demand that he pays according to the credit plan, since he failed to pay on time. It is also impermissible in Shariah to charge the buyer extra just because he failed to pay on time. (Fataawa Mahmudiyyah Vol. 16 Pg. 46)
AND ALLAH TA'AALA ALONE IN HIS INFINITE KNOWLEDGE KNOWS BEST
ANSWERED BY: Sohel Lala
CHECKED AND APPROVED BY: Mufti Muhammed Saeed Motara Saheb D.B.
Islamic Date:6 Safar 1441
English Date: 5 October 2019