Is this riba (Haram) or not

[peaceandlove]

:sl:

I just want to know your opinion on this situation , to make it ease for your people i will suppose some figures instead of acutual figures .

I had made an agrement with my client outside my country to do some work for $100 ( actual figure is different).

As we both are from different countries so for making payment we must use bank or company , Now at the time of making agrement as per our agrement buyer will pay $100 to company/bank , who send that payment to me , that company deduct $10 from my account and send payment to me , so i will get net amount $90.Company wont charge anything from a person who is depositing the funds. In other word the company we are using deduct their service fee from the party recieving payment.

Now , due to some issue buyer delays the payment , the work was delivered on time , now we cannot use that company and must use some other company , the policy of new compay is that they will deduct service fee from the party who is depositing the fund (in this case from my buyer) so now my buyer has to pay $110 to the company , company will deduct $10 as a service fee and pay the rest amount $100 to me. This company wont charge any thing to the person recieving payment just opposite of the first company.

If you analysize the situation it will be some thing like that at the time of making an agrement i have to pay the service fee , but due to change of company at the time of payment my client has to pay the service fee for which he is ready to pay happily?

My question is will that additional payment (paid by my client ) as a service fee will be considered as Riba (Interest) Haram?

[aamirsaab]

:sl:
Yes, service frees would be counted as riba. For the sake of this argument, Profit (or 'service fee') made on money = riba.

[ardianto]

:sl:

If we take a loan $100 from the bank and we must pay back $110, the $10 is categorized as riba. But service fee in this case is not falls into this category, because no one take a loan from the bank.

Although service fee in this case is similar as fee in payment with credit/debit card, service fee in this case is possible to categorized as shipping cost. Same as when we send a package to someone in other place and we pay shipping cost to courier company that send this package.

[aamirsaab]

:sl:

If we take a loan $100 from the bank and we must pay back $110, the $10 is categorized as riba. But service fee in this case is not falls into this category, because no one take a loan from the bank.

Although service fee in this case is similar as fee in payment with credit/debit card, service fee in this case is possible to categorized as shipping cost. Same as when we send a package to someone in other place and we pay shipping cost to courier company that send this package.

That only works if it is a commodity, like a boat or a chair etc. In this case, what is being ''shipped'' (electronically, no less) is money.

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[noorseeker]

your not paying it, so i dont see whats wrong.

isnt it like western union,

[ardianto]

Example of riba case.

First party borrow $100 from second party. Later first party pay $110 ($10 higher) to second party. First party pay higher than money that borrowed from second party, and second party receive payment higher than loaned money.

Now back to case in this topic.

There are three parties.
Money sender as first party.
Money receiver as second party (brother peaceandlove)
bank/company as third party.

First party must send payment $100 to second party. Third party (bank) agree to give money sending service but they want to take $10 from this money as service fee. So, first party gives $110 to the bank. Is this riba ?.

Notice, if first party gives $110, it doesn't means first party pay higher, because in fact, first party pay only $100 tho second party and gives $10 to the bank as service fee. And second party receive only $100, not more. There is no riba in this case.

[zakirs]

:sl:

I think this can only be decided by a scholar and here is the islam qa quote.

It is permissible to transfer money via the banks even if they are riba-based, because there is a need for that and because it is a problem that is so widespread, but one should hasten to collect the money as soon as it arrives, so that the bank will not be able to make use of it in any riba-based dealings.

http://www.islam-qa.com/en/ref/101747/money%20transfer

[maisha]

im kind of lost? :(