Permissibility of Conditional Purchases for Pensioners

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?

Mufti Muhammed Hamza Farooqui · Accepted 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

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