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Fatwa CenterIs a Difference in Price When Paying by Bank Transfer Considered Interest?
Question
Is it considered riba if in an online marketplace, any payment through bank transfer cost less than payment in cash?
Answer
All perfect praise be to Allah, The Lord of the Worlds. I testify that there is none worthy of worship except Allah, and that Muhammad (sallallaahu 'alayhi wa sallam) is His slave and Messenger.
There is no legal (Shar‘i) objection to a difference in the price of a product based on the buyer’s method of payment, and this is not considered usury (ribā).
However, it is essential that both parties firmly agree on one specific method of payment before concluding the contract. This is because leaving the choice between two prices undefined falls under the prohibition of 'combining two sales into one sale.' Abu Hurayrah (
) narrated that: “The Messenger of Allah (sallallaahu 'alayhi wa sallam) forbade [from combining] two sales into one sale.”
Recorded by Imam At-Tirmithi, who said: "This hadith is Hasan and Sahih (authentic), and the scholars have acted upon it (used it as evidence)."
Some of the scholars explained this by saying: “Combining two sales into one sale, is when someone says: 'I will sell you this garment for ten, if paid in cash immediately, and for twenty, if paid on credit,' and then they separate without agreeing on one of the two options. But if they part ways after settling on a single price, there is no problem, as long as the contract is concluded on one of the two options.”
Allah Knows best.
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