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Is the Money Received in Refunds and Compensation Halal?

Answered as per Hanafi Fiqh by DarulIftaBirmingham

Answered by: Maulana Burhaan Rahman


A company that I ordered stuff from didn’t send me my entire order. When I protested, they sent me money in addition to a return of what I had already paid. My request was fulfilled shortly after; I assume it was only delayed. I got in touch with the business to let them know that since I had already received my request, they could return the charge and compensation. According to them, they wouldn’t be taking anything back.

Is the money I received in refunds and compensation halal? Because I’ve already gotten what I ordered.

In the name of Allah, the Most Gracious, the Most Merciful


Sometimes businesses have a policy of charging a consumer a fee and compensating them financially if their order is incompletely sent, etc. just like the business you are referring to

You filed a complaint before the entire order was delivered, and you were within your legal rights to do so. So then they gave the fee and compensation to you as a customer service they have in place. If you had complained sincerely (not trying to take advantage of the company’s money) and you had sincerely tried giving the money back (which the company tells you to keep), the money is halal for you to keep.

Our beloved Prophet (SAW) had said:

وَلاَ يَسْرِقُ السَّارِقُ حِينَ يَسْرِقُ وَهْوَ مُؤْمِنٌ

“No thief is a believer at the time when he is stealing.” [Bukhari Hadeeth no: 5578]

Allah mentions SWT in the Qur’an:

يٰۤـاَيُّهَا الَّذِيۡنَ اٰمَنُوۡا لَا تَاۡكُلُوۡۤا اَمۡوَالَـكُمۡ بَيۡنَكُمۡ بِالۡبَاطِلِ اِلَّاۤ اَنۡ تَكُوۡنَ تِجَارَةً عَنۡ تَرَاضٍ مِّنۡكُمۡ

“Oh you who believe! Eat not up your property among yourselves unjustly except it be a trade amongst you, by mutual consent”. [Surah Nisa verse 29]

In light of this, it can be said that the money is Halal provided there was no exploitation or abuse and you made all effort to make the necessary changes. Consider it a “gift” from their end as they wouldn’t let you return the money.

Only Allah knows best.

Written by Maulana Burhaan Rahman

Checked and approved by Mufti Mohammed Tosir Miah

Darul Ifta Birmingham

This answer was collected from DarulIftaBirmingham.co.uk, which is run under the supervision of Mufti Mohammed Tosir Miah from the United Kingdom.