Fatwa #140007 March 2006United States of America
I will pay the bill with my money for $100.00 and collect my fee for writing the check, mailing out the payment and be responsible if my check is not cleared by the bank.
Question
I had recently asked a question regarding a business that I would like to start. I will be doing bill payment for people. I know that this business is allowed. However, one thing that is different is that the customer will not have the money to pay his bill.
for example. phone bill is $100.00
I will pay the bill with my money for $100.00 and collect my fee for writing the check, mailing out the payment and be responsible if my check is not cleared by the bank.
They will pay me my $100.00 after 30 days
Can I collect a fee for doing this. I will have employees, rent, office cost and bank cost. Please respond ASAP I will be starting the business really soon. I know that I can't charge a fee for giving them the $100 that will be interest.
Answer
You are aware that you cannot give an amount equivalent to the bill and charge a fee specifically for that as that will be interest and prohibited.
You may, however, offer a service to pay the bills of people and charge a fee for that service. The fee must be a standard one and not in relation to the bill. For example, if a bill is $100, you may do all the necessary arrangements of writing the cheque, going to the bank, etc. and charge $10 for that. The same would be for a $1000 bill. The service fee should not be on the percentage of the amount due as that will not reflect as an amount paid for a service.
and Allah Ta'ala Knows Best
Mufti Ebrahim Desai