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Renting out one’s Space for an ATM to be Installed

Answered as per Hanafi Fiqh by Daruliftaa.com

Can I rent out my space for an ATM machine to be installed? Will my income be halal?


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

The automatic teller machine (ATM), also known as an automated banking machine (ABM), a cash-point, cash machine or sometimes a hole in the wall, is used for a variety of functions. These include:

a) Withdrawing cash from the user’s bank account,

b) Depositing money into one’s account,

c) Checking and/or printing one’s account balance,

d) Account transfers (moving funds from one account to another).

These services provided by the ATM are not considered unlawful (haram); and as such, it is permitted to rent out one’s space for an ATM to be installed. The income received will be lawful (halal).

1) If the rental is paid by the banking/finance company, then – as explained in previous answers – not all bank funds are considered unlawful and usurious, since banks store a mixture of halal and haram funds, with the majority being lawful – consisting of customer savings and shareholder contributions. As such, if the act/job in of itself is halal, payment from a bank would also be halal.

2) If one is paid from a percentage that is charged from the customer for using the ATM, then this is also permitted. Charging fees for using the ATM is a service charge hence permissible, and not interest (riba). The ATM provides a service that can be priced and charged to the beneficiary to the service.

As such, whether one is paid directly by the bank for having the ATM installed, or by the customer using the ATM service; it is permitted to rent out one’s space, and the income received will be halal, insha Allah.

And Allah knows best

[Mufti] Muhammad ibn Adam
Darul Iftaa
Leicester , UK

This answer was collected from Daruliftaa.com, which is headed by Mufti Muhammad ibn Adam Al-Kawthari. He’s based in the United Kingdom.

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