Q: Is it permissible to charge a general 15% handling fee for all returns for admin and transportation costs?
E.g. The seller is in Durban and the buyer is in Johannesburg or Cape Town. The seller incurred admin and transport costs to get the goods delivered and 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.
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.
And Allah Ta'ala (الله تعالى) knows best.
(فإن شرطا أكثر منه أو أقل فالشرط باطل ويرد مثل الثمن الأول) ... إذا ثبت هذا نقول إذا شرط الأكثر فالإقالة على الثمن الأول لتعذر الفسخ على الزيادة إذ رفع ما لم يكن ثابتا محال فيبطل الشرط لأن الإقالة لا تبطل بالشروط الفاسدة (الهداية 3/69-70)
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