Guaranteed Low Prices and Interest: Difference between revisions
From Halachipedia
→Buying on Credit
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# Using advanced discounted payments for a yeshiva or non-profit tzedaka organization is permitted since this is only a rabbinic form of interest.<ref>[https://www.yutorah.org/sidebar/lecture.cfm/900500/rabbi-hershel-schachter/dinei-ribbis/ Rav Hershel Schachter (Dinei Ribbis approx min 40)]</ref> | # Using advanced discounted payments for a yeshiva or non-profit tzedaka organization is permitted since this is only a rabbinic form of interest.<ref>[https://www.yutorah.org/sidebar/lecture.cfm/900500/rabbi-hershel-schachter/dinei-ribbis/ Rav Hershel Schachter (Dinei Ribbis approx min 40)]</ref> | ||
===Buying on Credit=== | ===Buying on Credit=== | ||
#Generally it is forbidden<ref>Rambam Malveh Vloveh 8:1 clarifies that it is only rabbinically forbidden to charge more for buying on credit since it is presented as a sale not a loan. Shach 173:4 agrees. Brit Yehuda 12:2 based on Shach 173:6 writes that many poskim hold that it is considered Biblical interest if they specified that there is a higher price for buying on credit.</ref> to charge someone extra for buying on credit.<ref>Gemara Bava Metsia 65a, Shulchan Aruch Y.D. 173:1</ref> | #Generally it is forbidden<ref>Rambam Malveh Vloveh 8:1 clarifies that it is only rabbinically forbidden to charge more for buying on credit since it is presented as a sale not a loan. Shach 173:4 agrees. Brit Yehuda 12:2 based on Shach 173:6 writes that many poskim hold that it is considered Biblical interest if they specified that there is a higher price for buying on credit.</ref> to charge someone extra for buying on credit.<ref>Gemara Bava Metsia 65a, Shulchan Aruch Y.D. 173:1, Brit Yehuda 12:1, Torat Ribbit 8:1</ref> | ||
#It is forbidden to make up a contract that if the buyer pays at the end he should pay a certain amount and if he wants he can pay earlier less.<ref>Torat Ribbit 8:2</ref> | |||
# Even if the two tiered pricing is set up that the on time payment is called a discount and buying on credit as the regular price that is still forbidden.<ref>Torat Ribbit 8:3</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> | |||
====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> | ||
