Q: If I go to a shop and ask for a refund, if the shop doesn't give me the money back but rather allows me to take something to that value, is it permissible? Please explain.
A: Since they are not prepared to cancel the sale and give the customer a full refund, but they are offering to make an exchange for another item to the same value, this transaction is not regarded as iqaalah (a cancellation of sale).
The offer they make to the customer of exchanging the sale commodity for another item of the same value is regarded as a new sale between both the parties. In this case, the customer will be regarded as selling his purchased item to buy a new item from the shop. According to the fuqaha, this transaction is permissible with mutual consent from both parties.
And Allah Ta'ala (الله تعالى) knows best.
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