Question
How can one differentiate between a valid service fee and riba? When a person runs out of credit on his phone, he can ask for a top up from the provider. However, the condition is that $1 is charged for topping up in addition to the amount. Is this $1 riba?
Answer
The difference between a service fee and riba is that former is paid for a service rendered while the latter (riba) is a payment for no service whatsoever. The meaning of 'service' is such service which is recognized as valid in terms of the Shariah. The 'topping up' can be regarded as a valid service for which $1 is charged.
- Source
- themajlis.co.za
- Published in
- The Majlis Vol 23 No 07
- PDF page
- 4
Appears under Questions and Answers (approximate).