Is Pre-Booking Products With Non-Refundable Fees Permissible?
Shafi'i Fiqh
Answered by Shaykh Muhammad Carr
Question
Is it permissible to pre-book products online by paying a non-refundable booking fee when the seller only procures the item after the order is placed, and the product is commonly available and delivered through the seller’s own facility?
Answer
In the Name of Allah, the Most Merciful and Compassionate.
According to the Hanbali School, it is permissible to purchase a product by paying a non-refundable deposit in advance. Their evidence is a narration reported by Zayd ibn Aslam, in which the Prophet (Allah bless him and give him peace) was asked about a non-refundable deposit (ʿurbun), and he permitted it. [See: Zuhayli, Bay‘ al-‘Arabun]
Resolution No. (76/3/85) of the Islamic Fiqh Assembly, issued during its 8th session, deems this type of sale permissible provided that it is limited to a specified period, the deposit is counted toward the price if the sale is finalized, and the seller retains the deposit if the buyer withdraws from the agreement.
You are welcome to adopt this view without compunction.
Majority View
The majority of scholars, including the Hanafiyya, Shafi‘iyya, and Malikiyya, consider non-refundable deposits impermissible.
They cite the narration of Amr ibn Shuaib that the Prophet prohibited the non-refundable deposit sale (arabun) [See Zuhayli, Bay‘ al-Arabun].
I pray this is of benefit and Allah guides us all.
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[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 benefitted 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 for 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’ah Board Member for Islamic Asset Management & Insurance Companies since 2001, aligning financial practices with Islamic principles.
