Guaranteed Low Prices and Interest: Difference between revisions
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→Buying on Credit
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# It is forbidden even if the seller doesn't need the money now and even if he is charging for buying on credit because it costs him more to buy from his suppliers on credit.<ref>Torat Ribbit 8:4</ref> | # It is forbidden even if the seller doesn't need the money now and even if he is charging for buying on credit because it costs him more to buy from his suppliers on credit.<ref>Torat Ribbit 8:4</ref> | ||
# If in a certain market the majority or all of the sales are down on credit and the standard price is the credit price then it can established that the regular price is the credit price and paying up front can be discounted.<ref>Torat Ribbit 8:15 based on Imrei Yosher 1:107, Vaomer Yizchak YD 56, Bet Avi YD 131, Brit Yehuda 22:8, Kitzur Dinei Ribbit of Rav Shternbuch 7:7. He explains that since this market is paid on credit it is considered like a rental (see Shulchan Aruch Y.D. 175:6).</ref> | # If in a certain market the majority or all of the sales are down on credit and the standard price is the credit price then it can established that the regular price is the credit price and paying up front can be discounted.<ref>Torat Ribbit 8:15 based on Imrei Yosher 1:107, Vaomer Yizchak YD 56, Bet Avi YD 131, Brit Yehuda 22:8, Kitzur Dinei Ribbit of Rav Shternbuch 7:7. He explains that since this market is paid on credit it is considered like a rental (see Shulchan Aruch Y.D. 175:6).</ref> | ||
# If a Jewish store has a different price for buying with a credit card than if you buy with cash it is forbidden to buy at that store with a credit card.<Ref>Torat Ribbit 17:29 based on Shulchan Aruch Y.D. 173:1, Mishpatei Ribbit 1:26:6. The reason to forbid it is that when paying with a credit card the payment is delayed to the seller and certainly for the buyer. Therefore charging more for buying on credit is rabbinic interest. However, see Rav Yehuda Aryeh Diner in Mayim Chayim p. 28 who permits paying more with credit card since when there is a sale with a credit card it is effectuated and transferred to the seller immediately. It is only a loan between the credit card company and the buyer. Kuntres Ezrat Eliezer Ribbit p. 11 points out that in reality the money is not immediately transferred to the seller. [https://www.creditcardprocessing.com/2013/12/long-take-merchant-receive-funds/ creditcardprocessing.com] describes it as taking between 24 and 72 hours.</ref> | # If a Jewish store has a different price for buying with a credit card than if you buy with cash it is forbidden to buy at that store with a credit card.<Ref>Torat Ribbit 17:29 based on Shulchan Aruch Y.D. 173:1, Mishpatei Ribbit 1:26:6. The reason to forbid it is that when paying with a credit card the payment is delayed to the seller and certainly for the buyer. Therefore charging more for buying on credit is rabbinic interest. However, see Rav Yehuda Aryeh Diner in Mayim Chayim p. 28 who permits paying more with credit card since when there is a sale with a credit card it is effectuated and transferred to the seller immediately. It is only a loan between the credit card company and the buyer. Kuntres Ezrat Eliezer Ribbit p. 11 points out that in reality the money is not immediately transferred to the seller. [https://www.creditcardprocessing.com/2013/12/long-take-merchant-receive-funds/ creditcardprocessing.com] describes it as taking between 24 and 72 hours. Rav Zeev Cohen in Kuntres Poalim BShabbat by Chicago Kollel p. 10 writes that there is no problem to charge extra for the credit card fee since the seller isn't charging less for buying on credit but rather because they are paid less by the credit card companies and to offset that they charge extra.</ref> | ||
====Undetermined Price (Tarsha)==== | ====Undetermined Price (Tarsha)==== | ||
# If an item doesn't have a fixed price then one can charge more for it when the buyer pays later than the delivery date. The reason is that since there's no established price the seller can set the price of the item at the higher price that the buyer will pay later. However, if there is a market price that is known<ref>Tosfot b"m 63b, Rosh b"m 5:22</ref> or the seller specifies a price for the item if one wanted to pay now and another price for buying on credit it is forbidden.<ref>Gemara Bava Metsia 65a</ref> Therefore, having a two tiered pricing system for buying regularly and buying on credit is interest and forbidden between two Jews.<ref>Shulchan Aruch Y.D. 173:1</ref> | # If an item doesn't have a fixed price then one can charge more for it when the buyer pays later than the delivery date. The reason is that since there's no established price the seller can set the price of the item at the higher price that the buyer will pay later. However, if there is a market price that is known<ref>Tosfot b"m 63b, Rosh b"m 5:22</ref> or the seller specifies a price for the item if one wanted to pay now and another price for buying on credit it is forbidden.<ref>Gemara Bava Metsia 65a</ref> Therefore, having a two tiered pricing system for buying regularly and buying on credit is interest and forbidden between two Jews.<ref>Shulchan Aruch Y.D. 173:1</ref> | ||
