Is POS Business a Forbidden Business (Haram) in Islam?

POS haram interest islam
POS Business
Interestingly, some religious enthusiasts have argued whether POS Business is forbidden in the Islamic doctrine or not. Thankfully, Islam is one of the few religions being practiced in the world that are complete and have guides on its practitioners, their ways of life, and justifications for whatever they do; want to do, or will do.

Before looking into whether the POS business is Haram (forbidden in Islam) or not, we must look into what is Point of Sale (POS), and what warrants POS Business?

POS and POS Business


Point of Sale (POS) Business is an innovative way of digitalizing payment of the price of item(s) bought in the store of physical business operators. POS is a technological innovation invented, primarily, for usage within stores, business centers, and marketplaces. It is nice to say, that POS was meant for the formal markets. However, it becomes a standalone business opportunity in the developing countries (developing economy) because of illiteracy and uneven access to digital media which is justified by the large domination of their economy by the informal economists. To cover the gap in implementing POS in the realm of its primary target, the formal market, and the informal market some human agents are involved in what is called POS Business in the developing countries, today.

Better than none, this is not the first scenario where a human agent would come in between formal and informal markets to close gaps; It is similar to the situation you enter a Supermarket, buy whatever you want, and tender your basket before a human cashier who collects salaries at the end of the months from the business owners. Although you may not be aware that his salary is paid by you because the deduction to cover her service is included in the price you are charged.

POS Business


POS Business involves a human agent balancing the gap between digital payment and access to physical cash with the charges of a certain percentage to cover their investment cost.

In Nigeria, for instance, a POS Business takes a transfer from a customer’s bank account to the POS business account or deducts the amount of physical cash a customer wants to withdraw from his Automated Teller Machine (ATM) Card and charges the customer about 2% of the amount involved in the transaction.


What is Haram in Islam?


Haram is simply an Arabic word which means “forbidden.” Haram simply refers to all actions and practices that are considered not allowed, in a particular scenario, and considered sinful if it is done under the proscribed circumstances.

Haram was talked about in the Qur’anic verses 6:144, 6:145, and 6:146 where it was used to mean forbidden, not allowed, and not permitted.

Also, in surat Baqarah, Qur’an 2 verse 173 says “He has forbidden for you dead animals, bloods, the flesh of swine and that which has been dedicated to other than Allah. But whoever is forced [by necessity], neither desiring [it] nor transgressing [its limit], there is no sin upon him. Indeed, Allah is Forgiving and Merciful.

Now, in the business and financial realms, Haram is spelled out in Qur’an 2 verse 275 where it says “Those who consume interest cannot stand [on the Day of Resurrection ] except as one stands who is being beaten by Satan into insanity. That is because they say, “Trade is [just] like interest” But Allah has permitted trade and has forbidden interest. So, whoever has received an admonition from his Lord and desists may have what is past, and his affair rests with Allah. But whoever returns to [dealing in interest or usury] – those are the companions of the Fire; they will abide eternally therein.

What is Interest in Islam


Interest is simply interpreted as Riba meaning Bribe in Islam, unjust, exploitative gain, unequal charges, exchanges, or fees in the course of doing business, going by the word used to describe interest in Qur’an 2 verse 275 quoted above.

POS Business and Haram


Going by the revelation in Qur’an 2 verse 275, is POS Business a haram or does it tend to be compromised by anyone as it may happen to any business activity in the world of humans?

The response to this is simple, POS Business is no haram and the charges are not different from the profit made by every other business to cover investment costs and make gains for the sustainability of the business. However, just like any other business could be compromised, POS Business can also be compromised by an unjust individual when the operator begins to charge more than the normal percentage.

Category: World-News
Tag: POS haram interest islam
Written by Omooba Alekuwodo (omoobaalekuwodo)
Published 11/21/2023 9:51:57 PM

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