Charging handling fees on items returned

Q: Is it Islamically permissible to:

1. To charge a general 15% handling fee for all returns for admin & transportation costs. Example, the seller is in Durban and the buyer is in Johannesburg or Cape Town. The seller incurred admin & transport costs to get the goods delivered & will incur costs to get the goods returned. There could be various reasons for the returns - incorrect goods supplied, excess stock bought, damaged goods received, buyer cannot sell the goods etc. 

2. If there is a price dispute between the seller & the buyer for goods supplied, can the seller write off the disputed amount as a donation? 

Note: The sales rep quoted the buyer a price and the admin office charged a higher price. When the buyer received the invoice, he queried the price & refused to make payment until he is charged the quoted price.

A: 

1. Once the sale has been concluded, neither the buyer nor the seller has the right to cancel the sale. However, if the seller takes pity on the buyer and agrees to cancel the sale and refund him, he will be rewarded. Nabi (sallallahu alaihi wasallam) said, “Whoever cancels the sale of a regretful person, Allah Ta'ala will forgive his sins on the Day of Qiyaamah.” 

If the seller is happy to cancel the sale, he cannot charge the purchaser a handling fee on the returned items. Charging a handling fee on returned items is not permissible in Shariah. If the client is charged a handling fee, the handling fee will be regarded as riba (interest). However, in the case where the items are damaged, then the seller has the right to hold back an amount equal to the damages caused to the items. 

Nevertheless, if the seller is not happy to accept the cancellation, he may tell the purchaser that he is not prepared to accept the cancellation, but is happy to purchase the items from him at a lower price. In this case, a new sale will have to be conducted between both the parties and the items may be sold at whatever price both parties agree upon. 

2. If the seller is happy to give the purchaser a discount on the price when selling it to him, he may do so, otherwise he has the right to charge the purchaser the correct price of the item and inform him that the sales rep had erred in the price that he quoted when taking his order. If the purchaser is happy to take it at the higher price which the seller wishes to sell it to him for, he may do so, otherwise he has the right to refuse the sale.

And Allah Ta'ala (الله تعالى) knows best.

Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)