Balance transfer fee or another form Interest?

[psyah]

Re: Balance transfer fee or another form Interest?

@lethal_kamikaze

Peace psyah,

Is this term if used in a business to make profit (not related to bank) what it would be? Just want to clear myself.

Example: If a businessman buy a product from an agent @ ‘A’ and sells in market @ A+1. Than the +1 will be considered ‘sood’ or profit?

This is not the same thing … For a number of reasons … Firstly, if the property was bought fully in one go … The price would be different … Secondly, if the seller has a product and the buyer has no commitment, but after the commitment is made to buy it … Then the seller increases the value that is riba … The seller needs to take full risk of buying in order to sell at profit … In which case the buyer may or may not buy the product. The seller will have an asset.

But the bank has no intention in keeping a given property. So it will arrange a purchase only when the buyer has committed to buy it. Effectively the bank is giving a loan … And it is not selling for profit … Because the loan giver does not take the risk. But a merchant does take the risk.