Cashing Cheques Through A Financial Services Company In
Return For Commission
Islamic Rulings -
Living Shariah Verdicts
Islamic Questions & Answers
We have cut ties with all banks due to the
fact that opening a bank account means you have
accepted the presented terms which in most casses
contain acceptance of riba or other haraam, and even
kufr etc. we recieve income cheques each month but are
not able to cash it because we dont have an account at
the bank. There are stores which cash them for a
certain percentage of commision and take some money
for processing aswell. I need to know what is
mentioned in the shariah regarding this matter or
matters as such.
Praise be to Allaah.
Cashing a cheque through a financial services company
in return for a fee or commission may be done in
1. Where the cheque is due, so the company cashes it
through the bank in return for a fee or commission.
There is nothing wrong with this, because it is a kind
of fee or commission in return for work, which is
going back to the bank and collecting the money from
it. The company is not entitled to this commission and
does not take possession of it unless it actually gets
the cash from the bank. But if it is stipulated that
it will take [the commission] before the cheque is
cashed, that is not valid.
See: al-Mawsoo‘ah al-Fiqhiyyah, 15/218
2. Where the company pays the amount stated on the
cheque to the bearer, minus its commission, then after
that it collects the money from the bank. This is not
permissible, because it is exchanging money for money
with a difference in the amounts, or it is a loan of
the amount stated on the cheque to the customer in
return for something extra, both of which are riba.
The way in which it is an exchange of different
amounts is that if the cheque is for one thousand, for
example, and the company gives him nine hundred, then
he has exchanged one thousand for nine hundred, and
this is riba al-fadl.
The way in which it is a riba-based loan is if the
company gives the customer nine hundred, and the
cheque at this moment is still in the name of the
customer and in his possession; then the company has
loaned him nine hundred on the basis that it will take
back one thousand when it cashes the cheque at the
3. Where the cheque is post dated, and the company
gives the money to the customer, then cashes the
cheque with the bank on the date written on it. This
is also haraam, for the two reasons mentioned above.
See also the answer to question no. 114733.
To sum up: the permissible way of doing this is
agreeing with the company that it will cash the cheque
and collect the money from the bank, in return for a
specific amount of money or percentage, which it is
entitled to when it finishes its work and collects the
money from the bank.
And Allah knows best.