Does Paying a Higher Updated Price Count as Riba?

Answered by Shaykh Muhammad Carr

Question

On an online platform where payment is required, the initial price displayed was £39. However, after encountering an issue, I went to fix it, and when I returned to the platform, the price had changed to £58. If I now pay the higher amount, does this constitute Riba (usury)?

Please note that this is not a late payment fee.

Answer

Thank you for your question. May Allah reward you.

Allah Most High says,

“That is because they say that trade is like usury, while Allah has made trade lawful and usury unlawful.” [Quran, 2,275]

The higher amount is not considered riba. It is the current asking price in the new contractual sitting (majlis al-‘aqd). You may accept the price and conclude the sale or opt out.

When you engage in something extraneous to the contract after the offer has been made, the offer falls away. Khatib says,

“The insertion of unrelated speech between the offer and acceptance, even if brief, invalidates the contract, even if the parties have not separated from the session, because it indicates a turning away from acceptance.” [Khatib, Mughni al-Muhtaj]

If a price is agreed upon and the sale is concluded, but the seller later increases the price in exchange for accepting delayed payment, this constitutes Riba. At that point, it becomes a transaction involving the “sale” of a debt for a stipulated positive return, which is prohibited. [See: Khatib, Mughni al-Muhtaj]

What is Riba?

Riba is defined as a contract involving the exchange of usurious compensation on both sides of the contractual equation under any of the following conditions:

1. The equivalence of the exchanged items, according to Islamic Law, is indeterminate at the time of the contract;
2. The payment of both the price and its corresponding value is deferred; or
3. The payment of one of them is deferred. [Bayjuri, Hashiya]

I pray this is of benefit and that Allah guides us all.
[Shaykh] Muhammad Carr
Checked and Approved by Shaykh Faraz Rabbani

Shaykh Muhammad Carr has dedicated his life to studying and transmitting our beautiful deen. His studies have taken him around the globe, where he has benefited from many luminaries. Under the guidance of his teachers – Shaykh Taha Karan, Shaykh Yaseen Abbas, Shaykh Muadh Ali, and many others – Shaykh Muhammad has grown to appreciate the beauty and benefits of diverse scholarship. He completed his memorization of the Qur’an at Dar al-Ulum Zakariyyah in September 1997 and received an Alimiyya Degree in 2006 from DUAI (Darul Ulum al-Arabiyyah al-Islamiyyah). He is also affiliated with Masjid Auwal in Bo Kaap, Cape Town (the oldest mosque in South Africa), where he serves as a co-imam, and Dar Al-Safa, where he has taught since 2018. As a teacher, he imparts the wisdom of our heritage and tradition by opening the door to students. As an imam, he has the unique opportunity to serve his community in daily life.

In addition to his roles as a teacher and imam, Shaykh Muhammad Carr has contributed significantly to the administrative and advisory aspects of Islamic institutions. Since 2023, he has served as the Administrative Director at The Imam Kurani Institute, contributing to the institution’s growth and development. He continues to pursue traditional Islamic Sciences, possessing a keen interest in Islamic Contract Law and Finance. Shaykh Muhammad has been a Shari‘a Board Member for Islamic Asset Management & Insurance Companies since 2001, aligning financial practices with Islamic principles.