Mu' meneen Brothers and Sisters,

As Salaam Aleikum wa Rahmatullahi wa Barakatuh.  (May Allah's Peace, Mercy and Blessings be upon all of you)

One of our brothers/sisters has asked this question:

Assalaamu Alikum

Is tip riba like If someone gives me extra money for product he bought even he says take the extra money for charity? Also It is riba if I sell my product more than the original amount? Remember I own a business.  

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Answer:

Is tips riba

In the name of Allah, We praise Him, seek His help and ask for His forgiveness. Whoever Allah guides none can misguide, and whoever He allows to fall astray, none can guide them aright. We bear witness that there is no one (no idol, no person, no grave, no prophet, no imam, no dai, nobody!) worthy of worship but Allah Alone, and we bear witness that Muhammad (saws) is His slave-servant and the seal of His Messengers.

Your Question: Is tip riba like If someone gives me extra money for product he bought even he says take the extra money for charity?

In essence ‘riba’ or ‘usury’ is an increase or fixed return given at a specified fixed time for return of the same commodity; such an increase in one’s commodity or ‘riba’ is absolutely forbidden for the believers by Allah and His Messenger (saws).

Allah says further in the Holy Quran Chapter 2 Surah Baqarah verse 278:

O Believers!, fear Allah and give up that ‘riba’ which is still due to you, if you are true believers. But if you do not do so, then you are warned of the declaration of war against you by Allah and His Messenger!

Al-Tirmidhi Hadith 2829 Narrated by Ali ibn AbuTalib

Ali said he heard Allah's Messenger (saws) invoke the curse of Allah on those who took ‘riba’ (usury), those who paid it, those who recorded it, and those who refused to give sadaqah.

If one gives a tip in appreciation of the services offered, or of his own free will wishes to pay an extra amount for a product to the seller as charity or a ‘tip’, there is absolutely no harm and no restriction in Islam if one accepts such generosity from the buyer.

Your Question: Also It is riba if I sell my product more than the original amount? Remember I own a business. 

If one sells a product for more than the original purchase price, it is the lawful profit one earns in a trade or business transaction….provided the product being traded is not unlawful in its essence (wine, swine, etc.), all such transactions or trade and the profits derived from such trades are absolutely lawful in the Sight of Shariah Law and Allah Subhanah.

Allah says in the Holy Quran Chapter 2 Surah Baqarah verse 274-276:

But those who devour ‘riba’ become like the one whom Shaitaan has bewitched and maddened by his touch. They have been condemned to this condition because they say, “Trade is just like ‘riba”, whereas Allah has made trade halaal and ‘riba’ haraam. Henceforth, if one abstains from taking ‘riba’ after receiving this admonition from his Lord, no legal action shall be taken against him regarding the ‘riba’ he had devoured before: his case shall ultimately go to Allah. But if one repeats the same crime even after this, he shall go to Hell, where he shall abide for ever! Allah deprives ‘riba’ of all blessing and develops charity, and Allah does not like an ungrateful, sinful person.

Whatever written of Truth and benefit is only due to Allah’s Assistance and Guidance, and whatever of error is of me alone. Allah Alone Knows Best and He is the Only Source of Strength.

Your brother and well wisher in Islam,

Burhan