SCP Business Halachah – Winter ‫תשפ״ה‬

S”A in '‫ סעיף ב‬- one who does not pay on time is likened
‫סימן שלט‬ to taking away the soul of his worker and violates
A. Requirement of Paying on Time up to 5 ‫ לאוין‬and one ‫עשה‬.
Need to know: • ‫ סמ"ע סק"ד‬- although some of the verses only
• Are you obligated to pay your electrician or apply to night workers and some only apply to
plumber on time? day workers, the Torah includes them all
together - one who doesn’t pay on time violates
• What about the school or camp you send your
all of them.
kids to, or the school bus company that brings
them to school? • ‫ סמ"ע סק"א‬- You only transgress all 5 if you never
plan on paying, but if you eventually plan on
• The band, makeup lady and caterer at your
paying you only transgress one ‫ לאו‬of ‫"ולא תבוא‬
children’s simcha?
"‫עליו שמש‬.
• Your landlord?
S”A in '‫ סעיף ג‬- for a day worker you have all night to
• What if your cleaners finished cleaning your suit pay and for a night worker you have all day to pay.
on Monday and you only pick it up on Friday?
• Rama - if the day worker finishes during the day
• Does it make a difference if the worker is Jewish hours, you have until nightfall to pay him since
or not? he has the status of someone working for hours
• How quickly do you need to pay not to (see ‫)סמ"ע סק"ז‬.
transgress this prohibition? S”A in '‫ סעיף ד‬- hourly workers must be paid by the end
(‫יג‬:‫ ויקרא )יט‬- you may not withhold the payment of your of their working day.
worker until morning. S”A in '‫ סעיף ה‬- based on (‫ גמרא בבא מציעא )קיא‬- one
• "‫ – "תעשוק‬means pushing off the employee with who works for a week, month or year, if he finishes
intention to pay at a later date (see ‫אהבת חסד‬ in the day, you must pay him by nightfall and if he
below). "‫ – "תגזול‬means theft and refers to the finishes during the night, you must pay him until
pushing off an employee w/o intention to ever daybreak.
pay him/her. S”A in '‫ סעיף ח‬- once you violate bal talin by not paying
(‫טו‬-‫יד‬:‫ דברים )כד‬- you may not withhold your worker’s on time on the first day, you do not violate it again
payment; rather, you must pay him on the day he on subsequent days that you did not pay, though,
finishes working. you do violate the rabbinic prohibition of ‫לא תשהא‬.
(.‫ גמרא בבא מציעא )קיא‬- one who does not pay his What about non-Jewish workers?
workers on time violates 5 ‫ לאוין‬and one ‫עשה‬. • (:‫ גמרא בבא מציעא )קיא‬- derives from "‫– "אחיך‬
(:‫ משנה בבא מציעא )קי‬- a day worker must be paid the “your brother” that the ‫ לאוין‬of associated with not
night after he finished working and the night worker paying on time do not apply to non-Jews.
must be paid during the day immediately following • (‫ רמב"ם )עשין ר‬- biblical mitzvah (the ‫ )עשה‬of
the completion of his work. If you do not pay them "‫( "ביומו תתן שכרו‬which does not say "‫ )"אחיך‬does
on time, you transgress the biblical prohibition of ‫לא‬ apply to non-Jews.
‫תלין‬. Summary: Requirement to pay on time applies to
• Someone who works for part of the day must be workers (whether they work by day, week, month or
paid by nightfall, and if he works for part of the year) and to rentals of animals, equipment and we
night, he must be paid by daybreak. are machmir to include also real estate rental. For
• Once you violate the prohibition, you do not someone who works in the day until sunset, you are
violate the biblical prohibition again on required to pay him at some point during the night
subsequent days, but you still transgress a and if you do not pay by morning, you violate bal
rabbinic prohibition of ‫ – בל תשהא‬do not delay. talin. For someone who works at night until sunrise,
(.‫ משנה בבא מציעא )קיא‬- one violates bal talin whether you have the following day to pay him. For
he delayed payment to a hired a worker, on a someone who works a few hours in the morning,
rented animal or rented vessel. This prohibition you have until the end of the day to pay him.
does not apply when making a purchase. Someone who works for weeks, months or a year if
S”A in '‫ סעיף א‬- mitzvah to pay your workers on time he finished his job in the day, you have until nightfall
and also to pay the rent for animals and vessels on to pay him. If you do not pay in time, you violate bal
time (e.g., cars, equipment, suits/tuxedos, dishes). talin, but once bal talin is violated once, it is no
One opinion holds that one does not violate the longer violated on subsequent days, but there is a
prohibition of bal talin for land, so not paying rabbinic prohibition that is violated daily. When the
house/apartment rent on time is not a violation of worker is Jewish you violate a ‫ לאו‬and an ‫עשה‬,
bal talin. when the worker is non-Jewish, you violate an ‫עשה‬.
• ‫ פת"ש סק"א‬- since the prohibition of not paying B. Exceptions to the Rule
on time is biblical, and some posskim hold that 6 exceptions to the requirement of paying on time.
apartments/houses are not considered "‫– "'קרקע‬ • Although one does not violate the prohibition
the ground itself, and some Rishonim hold that (‫ )לאו‬of not paying on time, he still does miss the
bal talin applies to land, we apply the rule of ‫ספק‬ opportunity to perform the mitzvah of paying on
‫ דאורייתא לחומרא‬and the halacha is that one time.
should be diligent to pay his house/apartment (.‫ – גמרא בבא מציעא )קיב‬1) derives from the verses that
rent on time. the owner only violates the prohibition if the

Notes by Phil Americus ‫סימן שלט‬ 1|Page

 SCP Business Halachah – Winter ‫תשפ״ה‬
employee asked for his wages. 2) When the • Rama - If the price is only negotiated at the end
employee asks for payment, the owner only of the job, the employer does not violate bal talin
violates bal talin if he has the funds to pay. 3) If the until the price is agreed upon.
owner tells the worker “Go to the grocery and buy • ‫ ש"ך סק"ב‬- if the worker agrees to be paid at a
on my tab”, or “Go to the money changer and he later time, no violation of bal talin.
will pay you”, the owner does not violate the S”A in '‫ סעיף ו‬- if your garment is at the dry cleaner, you
prohibition, even if the money changer does not do not violate bal talin as long as he has your
have any of the owner’s money. garment, even if he is done cleaning it. Once he
(.‫ – גמרא בבא מציעא )קיא‬4) An owner who is known to hands you the garment, you have until nightfall to
pay his workers only a certain date, does not violate pay him (when he gives if to you during the day).
bal talin, even if he has cash on hand beforehand, S”A in '‫ סעיף ז‬- if workers are hired through a third party,
because the workers know that he only pays on that and the third party specified that the owner will be
day. Ex: a farmer hires workers on Sunday to pick paying the wages, the owner does not violate bal
apples, but they know that he only pays them on talin if he doesn’t pay on time, but he does violate
Thursday after he is able to sell the apples on the ‫בל תשהא‬.
day of the shuk, the farmer does not violate bal talin Summary: 6 exceptions where if an owner does not pay
(though Rashi says he does violate ‫)בל תשהא‬. on time, no violation of bal talin:
(.‫ – גמרא בבא מציעא )קיב‬5) If you gave an item to a • 1. If the worker does not demand his wages.
kablan to fix and he finishes the job, but the item is • 2. The owner does not have money (or valuables
still in his possession, you do not violate bal talin. If to sell) on hand.
he gives it back to you during the day, you have • 3. The owner sent the worker to a third party
until night to pay him. Ex: dry cleaner or mechanic (e.g., money changer) to collect his wages.
informs you that your suit/car is ready. • 4. The owner is known to only pay on a specific
(:‫ – גמרא בבא מציעא )קי‬6) If you hire workers through an date.
agent, and the agent made it clear that you will be • 5. Your product which was serviced hasn’t yet
paying, you do not violate bal talin. Ex: a CEO of a been collected.
large company.
• 6. Your employees were hired by a third party.
S”A in '‫ סעיף י‬- one only violates bal talin if his worker
C. Practical Application
(or rental company) asks him for payment and he
Note: Even in situations where one does not violate the
has the funds. If they do not ask him, or if they ask
prohibition of bal talin (e.g., the worker didn’t
but he doesn’t have the funds, he does not violate
demand the wages), he is still missing out on
the prohibition.
fulfilling this biblical mitzvah.
• ‫ חפץ חיים‬in (‫ נתיב החסד )פ"ט סקכ"ט‬- the worker Cleaning help
doesn’t need to verbally ask for the money,
• If you hire a non-Jewish cleaning lady for a few
rather, even if he just approaches you after he
hours during the day to help clean your house,
completes his job, obligated to pay.
you have a biblical obligation to pay her by
• ‫ רבי עקיבא איגר‬- quotes the ‫ – חינוך‬if he doesn’t nightfall. If you hire her for a few hours at night,
have money to pay, it’s only if he also does not you are obligated to pay her by daybreak. If you
have valuables that he can easily sell, but if he do not pay her on time, you are neglecting an
does, he is obligated to sell them to pay his ‫ עשה‬according to the Rambam. If the cleaning
worker on time (if he will not suffer a major loss help is Jewish and you do not pay her on time,
from the sale). R. Bodner holds that one need you will also violate the ‫ לאוין‬associated with not
not sell items that were not for sale already. paying on time.
• S”A - if the owner sent his workers to a money Electrician/Plumber/Handyman
changer to collect their wages and the workers • After an electrician, plumber or handyman has
and money changer agreed to this arrangement, completed his job, you are obligated to pay him
the owner does not violate bal talin even if the before the end of the day. If you do not, and he
money changer doesn’t pay them and even if he is a Jew, you transgressed both a ‫ לאו‬and an ‫עשה‬
has no money by the money changer. Though, if and if he is a non-Jew, you violated the ‫עשה‬. If
the workers change their mind before being paid the handyman needs to purchase an extra part
and want to be paid by the owner, the owner (that you pay for separately), you do not violate
must personally pay them and will otherwise bal talin on the purchase of the part since bal
violate the prohibition. talin only applies to work/rent, but not to sales.
S”A in '‫ סעיף ט‬- if the owner is known to pay his workers Wedding
on a certain day, he does not violate bal talin if they
• When making a wedding or other simcha there
finish working before that date, even if he has
are many services where one will violate bal talin
money on hand. If the payment day arrives and the
if he does not pay on time. Ex: the hall, furniture,
owner doesn’t pay them, he does not violate bal
photographer, band, waiters, and makeup artist.
talin, because the biblical prohibition applies only at
For the flowers, the florist usually splits the
the end of their working day, but he does violate a
charge into 2 where there is no prohibition of bal
rabbinic prohibition of ‫בל תשהא‬.
talin on the price of the flowers themselves, but
there is bal talin with regard to the setup.

Notes by Phil Americus ‫סימן שלט‬ 2|Page

 SCP Business Halachah – Winter ‫תשפ״ה‬
• Seems the same would apply to a catering • Other examples of where one would violate bal
company – there is no bal talin on the cost of talin if he doesn’t pay on time: Moving company,
food itself, but there is on the service and setup. chevra kaddisha, security guard, tour guide,
• (‫ קיצור דיני בל תלין )עמ' מט‬- questionable whether painter, car wash, private tutor.
one violates bal talin since on the one hand the Restaurant
“per plate” cost might be considered a sale • Paying on time only applies to goods and
(where bal talin does not apply) since the main services but not to sales.
cost is the purchase of the food, but on the other • ‫ פת"ש‬and ‫ ערה"ש‬- when a worker purchases raw
hand, the per plate cost might be considered a items and enhances them, the delivery of the
service and bal talin will apply. item is viewed as a sale and not as a service.
• Lema’ase, ‫ פת"ש סק"ג‬and (‫ ערוך השלחן )ז‬- when Therefore, the prohibition of bal talin will not
a worker purchases an item and enhances it apply to restaurants.
through his work, it is always considered a sale • If it is expected that the waiters get a tip, there
and bal talin does not apply. If you do not pay would be bal talin for the service charge.
the caterer on time, you do not violate bal talin • Since the cost of the food is the same whether
since it is viewed mainly as a sale. you eat in the restaurant or order take-out, it is
• A babysitter must be paid after her work is done. clear that you are not paying for the service of
As mentioned, from ‫ש"ך סק"ב‬, one does not sitting in the restaurant and using their tables
violate bal talin if the worker agrees to be paid at and thus, there is no bal talin on the use of the
a later time, though you would forfeit the mitzvah restaurant.
of paying on time. Away when job is completed
Rent • ‫ חפץ חיים‬in (‫יב‬-‫ אהבת חסד )פ"י‬- since paying on
• ‫ פת"ש‬explained that since the obligation of time is a great mitzvah and required, if you know
paying on time is biblical, we passkin that it you will be away when the job is completed and
applies to rent as well and one should be diligent will not be able to pay the worker, obligated to
to pay his rent on time to possibly avoid pay before you leave.
transgressing a biblical prohibition. • If the cleaning help, plumber, or electrician will
• There is room to argue that in most rentals finish after you leave, you are obligated to pay
today, one does not violate bal talin when he them beforehand.
doesn’t pay his rent on time. Dentist/Doctor
§ Halacha that ‫– אין שכירות משתלמת אלא לבסוף‬ • Dentist is just like any other worker, where you
the obligation to pay for goods or services are obligated to pay immediately.
only goes into effect after the service is • (‫ז‬-‫ קיצור דיני בל תלין )פ"ב‬- if the dentist works for
completed. Meaning that if you have a a clinic and gets a set salary from them, you do
monthly rental contract, obligated to pay on not violate bal talin with regards to the dentist,
the last day of the month. but you do violate it with regard to the clinic. If
§ Today most rentals ask the renter to pay for the clinic is owned by a few individuals, it is
the month upfront. In such a situation, if you questionable whether you transgress bal talin.
do not pay in advance, you will not violate bal • In other words, when the “worker” is a
talin, because biblically you are not obligated corporation, it is questionable whether the
to pay them at that point (but you might be in prohibition of bal talin applies.
violation of breaching the contract). If you do • (‫ שבות יעקב )ח"א קסו‬and ‫ פת"ש סימן רכז סקכ"ג‬- bal
not end up paying by the end of the month, talin applies even to companies that are owned
you also will not violate bal talin, since you by a multiple individuals.
and the landlord agreed on a different Remote workers
payment day (the first of the month) and as • Seems that if he informs the employer through
the S”A passkined in '‫ סעיף ט‬if both parties digital means (e.g., email, WhatsApp) that he
agree on a different payment day, bal talin is has completed his task or sends his details for
not violated. payment, that is equivalent to approaching him
• It should be stressed that in rental agreements to ask for payment.
where you are obligated to pay by the end of the • (‫לא‬-‫ נתיב החסד )פ״ט‬- The employer need not
month for the previous month, if you do not pay chase him to pay, but just inform him that the
on time, you violate bal talin. payment can be picked up.
Schools and School bus Borrowing money to pay workers
• Obligated to pay for the school or school bus on • Does not violate bal talin if he doesn’t have what
time, since they are offering a service, and if you to pay.
do not you violate bal talin (unless the • (‫ז‬-‫ נתיב החסד )פ"ט‬- if you do not have funds
school/bus company agrees to allow you to pay available to pay your worker (or any goods to sell
later). to pay the worker), obligated to borrow money to
• If the school bus requires you to pay upfront for fulfill the mitzvah of paying on time, especially if
the month, it would seem that you do not violate the worker is poor. However, the (‫יד‬-‫ערה״ש )שלט‬
bal talin as explained above regarding rent. writes that this is only a “middas chasidus.”

Notes by Phil Americus ‫סימן שלט‬ 3|Page

 SCP Business Halachah – Winter ‫תשפ״ה‬
• If on Friday afternoon you need to pay your § (‫ שבות יעקב )ח"א קסו‬and ‫פת"ש סימן רכז סקכ"ג‬
cleaning lady, but you do not have any cash on - bal talin would apply even to services
hand, it is better to knock on your neighbor’s provided by the public, such as a mikvah.
door, borrow money and pay her (to fulfill the • So, he should not go, because by going he
mitzvah of paying on time), than to arrange with would violate a ‫לאו‬.
her to pay on Sunday. Although, you will not • One who goes to the mikvah w/o planning on
violate bal talin when she agrees to be paid on paying violates the prohibition of ‫ לא תגזול‬and is
Sunday, but you will forfeit the biblical mitzvah of passul for ‫עדות‬.
paying on time. • If you know the mikvah allows late payments,
Shabbos food or paying on time allowed to go and pay on Sunday, but best to
• ‫ ביה"ל סימן רמ"ב ד"ה לכבד‬- if one only has money borrow money from your friend and pay the
to either pay his worker on time or to buy food mikvah on time.
for Shabbos he should pay his worker, even if Taxi Driver
honoring Shabbos is a biblical commandment, • Like a service provided by the hour, where one
because paying your worker on time has both a has until the end of the day to pay.
‫ לאו‬and an ‫עשה‬. He can also ask the worker to • (‫ב‬:‫תע‬-‫ תשובות והנהגות )ח"ג‬- quotes that he heard
agree to delay payment. in the name of the ‫ חפץ חיים‬- mitzvah of ‫"ביומו‬
Embarrassed to ask (Shiur #4) "‫ תתן שכרו‬only begins after the job is completed.
• S”A in '‫ סעיף ט‬- if the owner is known to pay on When he took a wagon driver he waited until he
a set day, he does not violate bal talin had reached the final destination and only then
beforehand. he would pay.
• ‫ ש"ך סק"ב‬- derives that if the worker agrees to be • Rav Sternbuch – argues, the whole point of the
paid at a later time, the owner does not violate mitzvah is to ensure the worker is paid on time,
the prohibition of bal talin. and if one pays beforehand that is certainly
• (‫א‬-‫ קיצור דיני בל תלין )פ"ד‬- if it is not clear that the acceptable and he fulfills the mitzvah.
worker really agrees to get paid at a later date, Check
e.g., the worker is embarrassed to ask for • (‫יב‬-‫ קיצור דיני בל תלין )פ"ד‬- unclear whether one
payment (e.g., a 13-year-old babysitter), you who pays with a check fulfills the mitzvah of
would still violate bal talin. Suffices if he verbally paying on time. One who pays with postdated
agrees to the later payment. check transgresses the prohibition, unless the
• R. Bodner – Even reluctant agreement is worker agrees in advance to accept the
effective. postdated check.
• Delayed request – Service providers who do • Rav Sternbuch in (‫ב‬:‫תע‬-‫ תשובות והנהגות )ח"ג‬-
not bill for their work until a later time, such as when one pays with a check dated today, he
accountant, therapist, computer programmer, surely fulfills the mitzvah of paying on time and
lawyer, or editor, are not subject to bal talin. this seems to be the custom.
Partial Payment Credit card
• What should you do if you only have part of the • Since the merchant doesn’t get the funds by the
money to pay? end of the month, maybe you violate bal talin
• ‫ חפץ חיים‬in (‫י‬-‫ אהבת חסד )פ"ט‬- when you pay part when paying with credit card?
of the wages you fulfill the mitzvah on what you • S”A in '‫ סעיף י‬- if you send your workers to
paid, and violate the prohibition on what you collect from a third party, you do not violate bal
didn’t pay. Fulfilled on every single dollar/shekel talin. Here, no bal talin since the worker agreed
that you pay and violation is transgressed on to collect from the credit card company. Even
every single dollar/shekel that you do not pay. applies if you do not have the funds to pay the
• You should borrow from a friend and pay the credit card company, as the S”A writes.
rest, but if not possible, ask if it is ok to pay the • Rav Shmuel Kamenetsky - you do fulfill the
balance on Sunday. mitzvah when paying with a credit card. The
• Alternatively, if you do not have any money or worker knows 100% that he is getting the money
valuables to pay with, you do not transgress the and it’s as if it is already in his account. In
prohibition (S”A in '‫)סעיף י‬. contrast, in the case of a money changer (or a
Mikvah postdated check) the employer does not fulfill
• If you do not have money to enter a mikvah on the mitzvah of paying on time because the
erev-Shabbos, can you slide in with your friend worker is not fully confident that he will receive
and pay on Sunday or next week? his money from the money changer.
• A mikvah is considered a service provider where • Seems that modern forms of payments,
all opinions agree bal talin applies. including Zelle, Venmo, PayPal, PayBox, and Bit
• Does one violate bal talin when he doesn’t pay a fulfill the mitzvah of paying on time since the
company? service provider receives the funds immediately.
§ (‫ז‬-‫ קיצור דיני בל תלין )פ"ב‬- questionable Bonus
whether one violates bal talin from an • Where the workers get an end of year bonus, is
organization. the employer obligated to pay the bonus on
time?
Notes by Phil Americus ‫סימן שלט‬ 4|Page
 SCP Business Halachah – Winter ‫תשפ״ה‬
• Is it viewed as part of the salary where bal talin (‫ חינוך )שמג‬- when the Torah wants to show the severity
applies or as a gift where bal talin does not of a prohibition it will teach it multiple times.
apply? S”A in ‫א‬-‫ סימן קס‬- passkins accordingly.
• (‫סק"ב‬-‫ קיצור דיני בל תלין )פ"ד‬- bonus has the • Rama - lending with ribbis is prohibited even to
status of a gift – no bal talin. a rich borrower.
Katan • (‫ – ש"ך )סק"ב‬Although the sofer is not mentioned
• (‫ה‬-‫ אהבת חסד )פ"ט‬- bal talin applies even to a by S”A, he agrees that the sofer also violates
service provider who is a katan. ribbis in accordance with the ‫חכמים‬.
• If you hire a 12-year-old boy to clean your car S”A in '‫ – סעיף ב‬based on (.‫ גמרא ב"מ )עא‬- one who
before Pesach or to build a Sukkah for you, you lends with interest will eventually lose his money
are obligated to pay him on time. and it is viewed as if he doesn’t believe in ‫יציאת‬
• Rav Chaim Kanievsky in '‫קיצור דיני בל תלין )עמ‬ ‫ מצרים‬or in Hashem.
(‫ נא‬- applies also to your children (even though, • (‫ז‬-‫ מגיד משנה )פ"ז‬- one who lends with interest is
halachically you own their income). If you showing that he does not believe in ‫השגחה‬,
promise your son a treat if he cleans his room which is similar to not believing in ‫יציאת מצרים‬
and you do not give it to him, you violate bal talin. which was the revelation of ‫השגחה‬.
• (‫יג‬-‫ אהבת חסד )פ"י‬- one who steals (by not What is the nature of the prohibition? Is lending with
intending to ever pay the wages of his worker) is ribbis similar to stealing?
a ‫ גזלן‬who is ‫ – פסול לעדות‬disqualified from acting • Rav Yechezkel Abramsky in (8 '‫ דיני ממנות )עמ‬-
as witness. laws of ribbis are found in ‫ יורה דעה‬and not in
Contractor ‫חושן משפט‬. ‫ יורה דעה‬discuss the halachos of
• Many times, one hires a contractor and ‫איסור והיתר‬, prohibitions that are between you
withholds the final payment to ensure that and Hashem (e.g., shechita, milk and meat, food
everything was done properly. Withholding the cooked by non-Jews, niddah), but the laws of
final payment will be a violation of bal talin, ‫ חושן משפט‬deal with monetary halachos that
unless the contractor agrees. apply between 2 Jews (e.g., bal talin, damaging
Advice another’s property and partnerships). Ribbis is
• ‫ חפץ חיים‬in (‫ אהבת חסד )סוף פרק י‬- sometimes not a monetary dispute between 2 parties, but a
when the work is done there will be a dispute prohibition between the borrower/lender and
about the payment. The worker wants more, and Hashem.
the owner wants to give less. Eventually they will • (‫כ‬:‫ רמב"ן )דברים כג‬- Hashem forbade ribbis even
settle on a price, but the worker feels he wasn’t when both parties agree since it lacks the love
fully compensated for his work (causing the and kindness that is meant to be between 2
owner to transgress bal talin and the other 4 Jews. Lending with ribbis is akin to turning your
‫ )לאוין‬and the owner feels that he was taken back away from giving tzedaka.
advantage of. • Rav Abramsky – adds, by monetary matters the
• Whenever hiring work or a service, the best losing party can demand a proof from the judge
practice is to come to an agreement on the price for the ruling, but with regard to ‫איסור והיתר‬, the
beforehand in order to avoid ill feelings. Rav is not required to show reasons for his psak.
Why is ribbis on a loan prohibited but renting an object
‫הלכות ריבית‬ is allowed? In both instances you are “lending”
something of value and charging for its usage.
A. Introduction to Ribbis
• (:‫ גמרא ב"מ )סט‬- relates that ‫“ רב חמא‬rented” his
Hilchos ribbis are vast and are found in the fifth perek
money, but eventually lost his fortune because it
of ‫ בבא מציעא‬and in S”A ‫קעז‬-‫יו"ד סימנים קנט‬.
was considered ribbis.
Torah forbids lending with ribbis:
§ Tosfos - bothered by ‫ רב חמא‬thinking
• (‫כד‬:‫שמות )כב‬, in (‫לז‬-‫לו‬:‫ויקרא )כה‬, and in ‫דברים‬ “renting” money is permitted. Tosfos answers
(‫כא‬-‫כ‬:‫)כג‬. that ‫ רב חמא‬thought: Loan - the borrower is
• Word "‫( "נשך‬lit. bite) - refers to the loss of money responsible to repay it, even if the money is
of the borrower. lost in a freak accident (i.e., an ‫)אונס‬. Rental -
• Word "‫( "תרבית‬lit. addition) - refers to the money the owner bears the responsibility for the loss
that is gained by the lender (as is evident from if the object was destroyed in a freak
(:‫)גמרא ב"מ )ס‬. accident. When ‫ רב חמא‬rented out the money,
(:‫ משנה בבא מציעא )עה‬- the lender, borrower, witness, he stipulated he would be responsible for
guarantor and the witnesses all violate the ‫אונס‬, so thought it was permissible.
prohibition of lending with ribbis. The ‫ חכמים‬hold § 2 explanations of Gemara why forbidden: 1)
that even the sofer who writes the contact is in When renting, the item itself is returned as
violation. opposed to money where different money is
(‫ב‬-‫( רמב"ם )מלוה פ"ד‬from the Gemara) - when lending returned. 2) When renting, the item itself
with ribbis, the lender violates 6 ‫לאוין‬, the borrower depreciates and the rent compensates for the
violates 2, the guarantor and witnesses violate one, depreciation, but the value of money does not
and anyone who was involved in brokering the deal depreciate with its usage.
violates ‫לפני עור‬.

Notes by Phil Americus ‫הלכות ריבית‬ 5|Page

 SCP Business Halachah – Winter ‫תשפ״ה‬
Summary: Ribbis is a severe biblical prohibition which organization. Viewed as if the lender
can include up to 6 ‫ לאוין‬and all parties involved collected it as interest (since it is in addition
violate at least some level of the prohibition. Rav to the sum of the loan) and just asked you to
Abramsky - the ribbis prohibition is mainly a matter send it to his friend/tzedaka organization.
of ‫ איסור והיתר‬that stems from the fact that Hashem • Criteria 3: Borrower needs to agree at the time
commands us be just and kind to one another. of the loan to pay interest.
Although lending with interest is forbidden, renting § Verse "‫“ –"את כספך לא תתן לו בנשך‬you may
an item is allowed, for 2 reasons: 1) Regarding a not give (i.e., lend) your money with interest”
loan, the money is meant to be spent (while the - implying that the biblical prohibition is only
rented item itself is returned) and 2) Regarding a violated when the interest payment was
rental, the item itself depreciates and the renter is agreed upon at the time the loan was issued.
charging for that depreciation. (Tosfos – need both § (‫ג‬-‫ רמב"ם )מלוה ולוה פ"ו‬- if you lent money to a
reasons to forbid ribit) friend w/o interest, but when the payment
B. Biblical Prohibition of Ribbis (Shiur #5) date arrives he asks for an extension which
Biblical ribbis is called ‫ –ריבית קצוצה‬set/defined ribbis. he will compensate you for, if you agree, the
Rabbinic ribbis is called ‫ –אבק רבית‬lit. the dust of ribbis, compensation is only considered ‫אבק ריבית‬,
meaning, not actual ribbis, but an act that rabbinic prohibition, since the extra
resembles or emanates from ribbis. compensation was not agreed upon at the
I. Criteria needed to violate the biblical prohibition of time of the loan. ‫ ראב"ד‬- considered a biblical
ribbis. prohibition since the extension of time is
• For a loan to be considered ‫ –ריבית קצוצה‬the considered a new loan.
biblical prohibition of ribbis, 3 criteria must be § (‫ד‬-‫ תורת רבית )פ״א‬- The biblical prohibition of
met. ribbis is violated only if a set amount of
§ The interest is on a loan (and not on a late interest was agreed upon when the loan was
payment of a sale or service). issued, but not otherwise.
§ The interest is paid from the borrower to the
lender (and not a 3rd party paying the lender).
§ The borrower and lender agreed at the time II. Difference between biblical and rabbinic prohibition
of the loan on a set amount of interest. of ribbis
• Criteria 1: Interest needs to be on a loan. • (:‫ גמרא ב"מ )סא‬- if one lends with ribbis and
§ (:‫ משנה ב"מ )ס‬- the "‫ – "נשך‬lit. biting, is violates the biblical prohibition of ribbis (i.e., all 3
lending 4 dinars for a payment of 5 dinars or criteria), Beis Din can pressure the lender to pay
lending 2 sa’ah (approx. 14.4 liter) of wheat back the ribbis collected. From the verse ‫"וחי‬
for 3 sa’ah, but "‫ "תרבית‬- lit. adding, is adding "‫ – אחיך עמך‬the lender must return the ribbis, so
fruits to a sale. the lender can live. If one transgresses the
§ Rashi - ribbis transferred in the form of a sale rabbinic form, Beis Din cannot pressure the
is only rabbinically forbidden (e.g., selling lender to pay back the ribbis collected.
apples worth $5 and allowing the buyer to • S”A in ‫ה‬-‫ סימן קסא‬- biblical ribbis can be taken
pay a week later if he pays $6). from the lender by exerting pressure on him.
§ Ribbis is violated not only when the interest • Is the lender still obligated to return the interest
is paid with money, but can be also be even if the borrower forgoes it?
transgressed when paid with goods, such as § (‫ב‬-‫ רא"ש )ב"מ פ"ה‬- quotes ‫ גאונים‬- even if the
a sa’ah of wheat, or other services. Ex: the borrower forgoes the ribbis, it must still be
lender says “I will lend you money, if you let taken out of the hands of the lender since in
me stay in your apartment for free” - biblical every loan with interest the borrower agrees
prohibition (see S”A and Rama in ‫ב‬-‫)סימן קסו‬. to pay interest payment and nonetheless, the
• Criteria 2: Interest must be paid from the Torah still forbids.
borrower to the lender. § ‫ רמב"ם‬- if the borrower forgave the ribbis, the
§ (:‫ גמרא ב"מ )סט‬- allowed to voluntarily give an lender is not obligated to pay it back.
individual money to convince him to lend § ‫ רא"ש‬himself - the borrower’s forgiving is only
money to your friend “since the Torah only valid after the lender collected the ribbis, but
prohibited interest that is paid from the if at the time of payment, the borrower wants
borrower to the lender”. to pay the ribbis and simultaneously forgive
§ S”A in ‫יד‬-‫ סימן קס‬- adds that it is forbidden it, the lender is not allowed to collect it (like
for the borrower to tell you “Pay the lender ‫)רמב"ם‬.
and I will reimburse you”. Also, the borrower § S”A in ‫ה‬-‫ סימן קס‬- like ‫ רמב"ם‬and ‫רא"ש‬.
may not tell the lender “My friend will pay you § ‫ ט"ז קסא סק"ג‬and ‫ פת"ש סק"ב‬- if the borrower
if you give me a loan”. In both situations - never asks the lender for the interest back,
considered that the one paying the ribbis is the lender is not obligated to return the
viewed as the shaliach of the borrower. interest payment.
§ S"A in ‫ סעיף יד‬- adds that if the lender tells § ‫ סמ"ע חו"מ סימן ט' סק"ג‬and R. Reisman p.348-
the borrower “I will only lend you money if you the lender is obligated to return the interest
pay my friend money”, it is forbidden, even if unless the borrower explicitly forgives the
his friend is a non-Jew or a tzedaka interest payment.
Notes by Phil Americus ‫הלכות ריבית‬ 6|Page
 SCP Business Halachah – Winter ‫תשפ״ה‬
Summary: Biblical prohibition of lending with ribbis is or have him stipulate he will pay interest if he
transgressed when the initial transfer of funds is in does not pay on time.
the form of loan, the interest is paid by the borrower • Only a rabbinic violation - S”A in ‫יד‬-‫ סימן קעז‬- if
to the lender (or to anyone the lender says to pay) you lend money with a stipulation that if he
and at the time the loan was issued, the parties doesn’t pay on time there will be an added fee,
agreed to a set amount of interest. If biblical ribbis the parties transgress a rabbinic prohibition of
is collected by the lender, Beis Din can pressure the ‫ הערמת ריבית‬even if Shimon always pays on
lender to pay it back, but if the borrower explicitly time. Since there is the possibility of this loan
forgives the return of the ribbis after it was already resulting in ribbis, it may not be initiated.
paid (or according to ‫ ט"ז‬never asked for it back), Lawyer
the borrower may keep the interest. • Are lawyers allowed to create the legal
Practical Applications: documents for a loan that includes interest
Taking out a mortgage for a friend payments between 2 Jewish businessmen?
• Your friend Shimon doesn’t have good credit and • (‫ב‬-‫ רמב"ם )מלוה פ"ד‬- quoted in ‫ ש"ך‬- even the
asks if you can take out a loan in your name and sofer – the one who writes up the documents –
he will pay the bank the monthly payment (which violates the biblical prohibition of ‫"לא תשימון עליו‬
includes interest). The bank has never heard of "‫ נשך‬since he is facilitating a loan with interest.
your friend Shimon and if he defaults on any • If a lawyer brokered the deal, he will also violate
payment, they will go straight to you. Is such an the biblical prohibition of ‫ לפני עוור‬based on the
arrangement allowed? ‫ רמב"ם‬mentioned earlier.
• S”A in ‫א‬-‫ סימן קנט‬- allowed to borrow money or • (‫לא‬-‫ דברי סופרים )סימן קס עמק דבר‬- Lawyers must
lend money to a non-Jew with interest and be careful when drawing up a document to
therefore, you are allowed to borrow from a non- ensure that there is no violation of ribbis in the
Jewish bank with interest. In our scenario when loan (according to R. Moshe, it might be
you borrow the money, Shimon is really permitted when the borrower is a corporation).
borrowing money from you and since you only Paying someone to offer a loan to a friend
agree to lend him the money if he pays back the • Your friend Shimon is in need of loan which you
bank with the interest, it is viewed as if Shimon do not have the liberty to lend him at this time.
is paying you back with interest and the bank is • Are you allowed to buy your wealthy friend
just collecting it on your behalf. Zevulun a gift to convince him to give a loan to
• Exact case of the S”A in ‫יד‬-‫ סימן קס‬- biblical Shimon?
prohibition even if the bank is not Jewish or even • Yes. S”A in ‫יג‬-‫ קס‬- allowed to give a gift to a third
if it’s a Jewish bank using a Heter Iska (unless party in order that he lends your friend. No
you make a Heter iska with Shimon). prohibition because the gift is not being given
Helping a friend to partner with you from the borrower to the lender.
• Your friend Shimon is struggling in business and • If Shimon will pay you back for the gift, it is
has bad credit, but you want to help him out by forbidden.
partnering with him 50/50 on a real estate deal. Brokering a loan
• Are you allowed to solely take out a loan from • Your friend Shimon needs a loan and asks you
the bank to buy the property and both of you will if you can ask Zevulun to lend him money and
split the payment to the bank every month? for your efforts in brokering the loan, Shimon will
• Basically the same case as before, where you compensate you. Is this allowed?
are viewed as borrowing from the bank the entire • Yes, only forbidden when the borrower pays the
amount and then lending half of it to Shimon, but lender.
only if he pays the capital and interest to the • In this case, you are being compensated for your
bank. Biblically forbidden unless a ‫ היתר עסקא‬is work in brokering a loan and the payment to you
arranged between you and Shimon. has nothing to do with interest.
Credit Card Discount for loan
• Your friend Shimon has bad credit and cannot • If you own a store, hotel or any product/service
apply for a credit card. company and are in need of a loan, are you
• Are you allowed to add him as an authorized allowed to offer the lender a discount if he gives
user on your credit card, and if he has any late you a loan?
payments, he will pay the bank with interest? • No. Rama in ‫כג‬-‫ סימן קס‬- borrowing money while
Similarly, are you allowed to let your friend use telling the lender that you will give him a discount
your credit card on condition that he pays you on one of your products is a biblical violation - all
back cash, and if he does not pay you back on 3 criteria are met.
time, he will also pay interest to the credit card C. Rabbinic Ribbis – Early Bird Specials
company? Rabbinic prohibition of ribbis - called ‫ אבק רבית‬or
• Forbidden - When Shimon uses the credit card, ‫הערמת רבית‬.
it is viewed as if he is borrowing money from you Need to differentiate between an early bird discount on
on condition that he pays the bank back with a product and an early bird discount on a service. If
interest (if he is late on his payment). Therefore, you are immediately collecting an item after
you may not add him as a user with this condition purchasing it, the store may give you a discount and
Notes by Phil Americus ‫הלכות ריבית‬ 7|Page
 SCP Business Halachah – Winter ‫תשפ״ה‬
the discount is not viewed as ribbis since there is not have the produce in stock (Tosfos). But
no loan that is being initiated. still forbidden to explicitly say “I will give you
‫ רב נחמן‬in (:‫ גמרא ב"מ )סג‬- general rule - whenever one a discount if you pay upfront”.
is rewarded or compensated for the wait he • Ex: You are selling a new bicycle on
endures until his money is returned it is considered Kickstarter.com (where bikes do not have a set
a violation of the prohibition of ribbis. market price), only allowed to advertise what the
Rama in ‫א‬-‫ סימן קסא‬- ribbis on a purchase is price is currently.
rabbinically prohibited. II. Early bird discount on service (Shiur #6)
I. Early-bird discount on product • S”A in ‫ח‬-‫ סימן קעו‬- if a worker charges more for
• Rav Nachman in (:‫ גמרא ב"מ )סג‬- not allowed to his work in the summer months, you are not
prepay for an item to receive a discounted price allowed to hire him for a cheaper price in the
- in essence you are lending money to the seller winter to work in the summer. The “hiring” in the
and he is repaying you with interest. winter (i.e., the payment today) is viewed as a
• Ex: A zuz purchases 4 wax sheets and the seller loan. If the worker immediately begins to work in
tells you that he will give you five wax sheets if the winter months, he is allowed to give you a
you prepay him, that is a rabbinic prohibition of discount even if the majority of his work will be in
ribbis since you are lending him a zuz and he is the summer – no ‫ – אגר נטר‬i.e., the employer is
repaying you 5 wax sheets, 4 are for the zuz and not being compensated for his money being held
the 5th is ribbis. in another’s hand.
• 2 exceptions: • (‫יג‬-‫ תורת רבית )פי"ד‬- when the worker plans to
§ 1) The seller has the product in stock and immediately begin to build, he is even allowed to
does not state that the product will be sold for verbalize that if he is paid now, it will be at a
more in the future. (‫ טור )קעז‬- only permitted discounted price.
if the seller does not explicitly say “if you pay • Summary:
me upfront, I will give you a discount”. § Selling a product at a discounted price that
§ 2) There is no set market price for the product will be delivered at a later date - forbidden
and the seller does not state that the product because the buyer is receiving interest on his
will be sold for more in the future. Tosfos ‫ד"ה‬ early payment. Leniencies: 1) The seller has
‫ ואמר‬- since it is known that one zuz buys 4 the product with him and he doesn’t mention
wax sheets, and the seller is offering 5 for the what the price will be later on. 2) The product
early payment it is as if he mentioned both has no set market value, and the seller does
prices and is forbidden. If no fixed market not mention that an early payment will
price, allowed to offer an early-bird discount, constitute a discount.
if you do not state the elevated price that will § Hiring a worker/service at a discounted price
be in the future. today to perform work at a later date -
• S”A in ‫ז‬-‫ סימן קעג‬- only allowed to offer an early forbidden because it is viewed as if the
bird discount on a product if you have the worker is paying back his employer with
merchandise available. interest. Leniencies: 1) Worker immediately
§ Rama - only allowed if you do not explicitly begins his work. 2) There is no set market
stipulate that if the customer pays upfront, he price for the service the worker provides, and
will get a discount (i.e., the Gemara). If there he does not mention that an early payment
is no set market price for the product, allowed will come with a discount.
to give an early bird discount even if he does

Seller has product/Service begins immediately No set market price

Sale If the buyer immediately collects the product, the seller may offer a It is permissible to give an
discount. If seller has the product in stock, but the buyer plans to collect early bird discount, if the
the product at a later date, the seller may offer an early bird discount for later more expensive price
paying upfront as long as the later more expensive price isn’t stated. isn’t stated.
Service When the service begins immediately, the worker may offer an early bird It is permissible to give an
discount, even if the later more expensive price is stated. early bird discount, if the
later more expensive price
isn’t stated.

Practical Applications: • If the product is immediately delivered it is surely

Appliances or furniture sale permitted.
• Many stores will sell a fridge, couch, oven or • If the item will only be delivered in the future, it
dishwasher at a discounted price if you pay would depend on whether the store has the item
everything upfront. Is this allowed? you want in stock. If they do, allowed, but only if
they do not mention that early payment will yield
Notes by Phil Americus ‫הלכות ריבית‬ 8|Page
 SCP Business Halachah – Winter ‫תשפ״ה‬
a discount. If they do not have the item in stock § 3) If the subscription company is owned by a
it is prohibited, unless the item does not have a corporation, according to Rav Moshe there is
set market price and the owner does not no prohibition of ribbis (see ‫סו‬-‫)תורת רבית פ"י‬.
explicitly say that the early payment yields a Subscription service - Online music/car cleaning
discount. • Online Jewish music/video platforms or other
• Lema’ase, most appliances do not have a given services such as, car cleaning or lawn mowing
market price and if a customer walks in and the companies offer a discounted price if you pay for
seller sees he would be willing to pay upfront, the the year upfront - allowed?
seller is allowed to offer him the discounted price • All 3 leniencies in the previous section would
w/o mentioning the more expensive option. If the apply here is well.
seller needs to say both to guarantee the • However, with a service there is a 4th possible
purchase, a heter iska should be set up between solution. According to S”A (and Rav Elyashiv
the seller and the buyer. above) - allowed to offer a discounted price
School/Camp tuition/Pesach program (even when stating the more expensive price) if
• Can a school/camp or Pesach program offer a the service begins immediately. So, if the
discount to those who pay upfront? moment you pay for the service, you are granted
• Seems that it is a service and if they explicitly access to the platform - viewed as a discount on
write that those paying upfront will receive a a purchase that is immediately collected.
discount - forbidden. D. Rabbinic Ribbis – Buy Now, Pay Later
• However, there are 2 (or use a heter iska) ways Many stores will allow you to buy a product and pay
to be lenient in this situation: over time with some interest added. The company
§ 1) Rav Elyashiv in the The Laws of Ribbis is “lending” you money to purchase and you repay
(chapter 3 fn. 30) - if the school/camp/Pesach them with interest. Is this permitted? Only rabbinic
program has already begun preparing for prohibition of ribbis since it is done in the framework
opening day it is viewed as if the worker has of a sale.
begun working and it is allowed. If no one is (.‫ משנה ב"מ )סה‬- if you sell a field and tell the buyer that
working then to prepare - forbidden. if you pay me upfront it will cost $100K, but if you
§ 2) Rav Moshe in (‫סג‬-‫ אגרו"מ )יו"ד ח"ב‬- “a pay me in a year, it will cost $120K, that is a rabbinic
chiddush in hilchos ribbis” - prohibition of violation of ribbis. Buying with credit, where the
ribbis is only violated when the borrower is credit is returned with interest is forbidden.
personally responsible to pay for the loan, but ‫גמרא )סה‬- quotes ‫ רב נחמן‬- that "‫ – "טרשא שרי‬selling an
for a corporation that is the borrower, ribbis object at an elevated price because it will be paid
does not apply. A Jewish owned bank is over time is permissible, but only if the seller
allowed to pay interest to its Jewish doesn’t state the cheaper price that it can be
costumers (on their deposits), since the currently bought at.
owners of the bank do not have a personal (:‫ רשב"א )סה‬- although the seller is being compensated
liability to repay the money (or the interest for not being paid immediately (i.e., ‫ – אגר נטר‬he is
owed) in each account. So, prepaying a rewarded for his money being locked up in the
school/camp/Pesach Program - no hands of the buyer), Chazal allowed it since ribbis
prohibition to receive an early bird discount. in the form of a sale is rabbinic, and they did not
Also applies to companies selling products want to limit transactions between buyers and
(e.g., the appliance store), where if the owner sellers, plus the interest payment is not explicitly
of the company bears no personal liability mentioned or noticed.
from losses, he may offer early bird Tosfos - scales back the leniency a bit - if the price of
discounts. Many poskim disagree with R. the item being bought is well known, you are not
Moshe, but it seems many Jewish institutions allowed to raise the price for payment at a later date
rely on him. since it is clear to all that you are raising the price
Subscription product – Newspaper/magazine because of the later collection date.
• Subscriptions where a discount is applied when Ex: If you sell new and used cars. A customer wants to
you prepay for the year - allowed? buy a used car - you know this customer can only
• Discount on a product when paid upfront - only pay over time or at a later date. According to ‫רב‬
permitted if the merchant has the product in ‫נחמן‬, since it has no set market value, allowed to
stock or if there is no market price for the offer a more expensive price (as compensation for
product/service. his late payment), but only if you do not mention the
• 3 ways to avoid the prohibition of ribbis with early upfront cheaper price. If the customer who always
bird subscriptions: buys on credit wants to buy a new car and this new
§ 1) Heter iska between the magazine car has a set market price across all dealerships,
company and the consumer. (Ex: Mishpacha not allowed to offer a higher price to be paid over
Magazine has a heter iska.) time.
§ 2) The magazine splits up the yearly price to ‫ טור‬- adds that even in the case of the used car, where
be equally divided on a monthly basis (i.e., allowed to mention the more expensive price to be
paid per month). No advanced payment that paid over time, if that price is so exorbitant and not
might conceivably be viewed as loan. within range of what it would be paid upfront, it is

Notes by Phil Americus ‫הלכות ריבית‬ 9|Page

 SCP Business Halachah – Winter ‫תשפ״ה‬
forbidden since it is clear that you are raising the • Discounted price if the purchase is paid in cash
price because of the late payment. as opposed to credit. Ex: owner prefers to get
S”A in ‫א‬-‫ סימן קעג‬- according to the above - 3 halachos paid cash to make an urgent repair and doesn’t
emerge: want to wait for the payment from the credit card
• 1) The seller is not allowed to raise the price of company. The question is whether the
a purchase when bought on credit, because in cash/credit options are viewed as the owner
essence the seller is lending the customer the offering 2 payment options, where paying now
value of the product and is being paid back more (in cash) is cheaper since the owner gets the
than what it is worth. money immediately, but paying with credit card
• 2) If the seller only mentions the more expensive is more expensive since the owner needs to wait
option of paying over time and the current to get his money and would be forbidden?
product has no set market price, it is permitted. • (‫ה‬-‫ חכמת אדם )קלט‬- allowed to offer a cheaper
• 3) Even if the seller follows all the requirements cash price because the credit card price is the
of #2, if the price for the purchase on credit is real market price, and the seller is just offering a
much more than its current price range, it is discount when paid in cash. Even when the
forbidden since it is clear that the seller is customer pays with a credit card, it is not viewed
charging the extra fee as compensation for the as if the seller is being compensated for
delayed payment. receiving his money later on. Rather, the credit
• (‫ד‬-‫ פת״ש )קעג‬- Until 20% is a reasonable price card price is the actual price and the cash price
hike. is a discount.
• (‫יט‬-‫ ברית פנחס )פ״י‬- With regard to real estate • ‫ פת"ש סק"ה‬- quotes the ‫ תפארת למשה‬- once you
one can charge even more than 20% since agreed to sell it for the cheaper cash option, any
people pay much more for property. price above that (to be paid at a later date) is
considered ribbis.
Practical Examples • [In the case in the S”A there is a set price for
Equal payments over time buying the item now and the customer is
• BNPL – Buy Now Pay Later - customer can charged with interest if he chooses to pay over
immediately pick up the product and pay over time, but in the cash/credit scenario, the
time. If there is no interest on the payment, it is announced credit card price is the actual price
surely permitted. But some companies only and the customer is getting a discount for paying
allow to spread out the payments if interest is upfront.]
added. If the seller is a non-Jew, it is certainly • It seems that many rely on the ‫חכמת אדם‬, but
permitted for a Jew to buy, since the prohibition many posskim write that it is best to be machmir
of ribbis does not apply to non-Jews. Can a ((‫ מהר״ם שיק יו״ד )קסג‬,(‫ שו״ע הרב )יח‬and the ‫ברית‬
Jewish owner offer a BPNL with interest to his (‫ז‬-‫)יהודה )כב‬.
customers? In Israel it’s called "‫– "תשלומים‬ Lease to own
“installments or payments”. • Customer leases a car for a monthly fee, and at
• S”A - paying over time with a small amount of the end of the lease, the customer may buy the
interest is forbidden when it is clear that if you car. Depends on how it is structured. If the title
pay now, it will be cheaper. However, if you are of the car is transferred immediately to the buyer,
buying from a small store where the prices are the deal would be prohibited. In this case, in
not displayed, the owner is allowed to offer you essence the buyer is immediately acquiring the
the more expensive credit price, if he doesn’t car, and paying for it over time with an elevated
state the current price and the “credit price” is not interest rate. If the title of the car remains in the
exorbitant. name of the leasing company and only transfers
• If the current price and the credit price are clearly after the final payment, it is permissible. In
displayed, is there any way to buy using the essence, he is renting the car for a monthly
credit option and not violate the prohibition of price, and the final lump payment is the amount
ribbis? The only way this would be permitted needed to purchase the car.
(when both the seller and buyer are Jewish) is • (‫לט‬-‫ תורת ריבית )פ"ח‬- only permitted if the buyer
with a heter iska. Note - if the credit card is not responsible for ‫ אונס‬and is only responsible
company is paying the merchant and the if the car is stolen or lost. If the buyer is
customer pays the credit card company over responsible for everything, it is viewed as a sale
time, the heter iska needs to be between the and forbidden. However, the seller can tell the
customer and the credit card company. buyer to take out an insurance policy (paid for by
• Rav Moshe - if the borrower on a loan with the buyer) that will cover all other losses.
interest is an organization where its owner will E. Rabbinic Ribbis – Borrowing Food (Shiur #7)
not be personally liable for the loan, the Chazal forbade lending produce (or anything that is
prohibition of ribbis will not apply. However, this consumed) with intention of getting back the same
will not help us in our situation since the amount, known as the prohibition of "‫– "סאה בסאה‬
“borrower” is the customer, who is not an a sa’ah for a sa’ah.
organization, so even Rav Moshe would forbid. Forbidden because the price of produce might go up in
Cash vs. Credit option between the date of borrowing and the date of

Notes by Phil Americus ‫הלכות ריבית‬ 10 | P a g e

 SCP Business Halachah – Winter ‫תשפ״ה‬
return, where ultimately the borrower is paying back the monetary value of a sa’ah at the time of the loan
his lender something more valuable than what he to avoid the prohibition of ribbis and if the price goes
borrowed. down, the borrower should repay him a sa’ah (even
Clear from the (:‫ גמרא ב"מ )מד‬- according to Chazal the though, now it is worth less than what was
local currency is always viewed as a constant and borrowed).
the price of the goods in the market are the ones • Rama - custom is to lend a loaf of bread for
that fluctuate. There is never inflation or deflation of another since even if the price fluctuates, the
currency. In the United States one is allowed to lend difference would be very minute (‫( )דבר מועט‬and
$100 to be paid back in $100 in 2 years, even Chazal were lenient about this rabbinic
though there might be deflation and the $100 in 2 prohibition).
years will have much more purchasing power. • In Hilchos Pesach the S”A in ‫א‬-‫ או"ח תנ‬also bring
4 situations where it is allowed: this- if one borrows a loaf of bread before
• 1) ‫ – עשהו דמים‬At the moment of borrowing, the Pesach, even though it will be worthless shortly,
parties convert the loan of produce into its he must pay it back (by returning another loaf)
monetary value, where regardless of the after Pesach when bread returns to its original
fluctuation in price, the borrower needs to pay value.
back the original value. § ‫ משנ"ב סק"ב‬- there is no prohibition of ribbis
• 2) ‫ – דבר מועט‬The price fluctuation is so minor with something minute.
people do not mind it. • Rav Ovadia in (‫ – הליכות עולם )עקב א‬same
• 3) ‫ – יש לו‬The borrower has some of the produce understanding of the S”A (though the Gra
being borrowed. understands that the S”A argues with the Rama).
• 4) ‫ – יצא השער‬There is a set market price of the (.‫ גמרא ב"מ )עה‬- if the borrower has just one sa’ah of
produce being borrowed. wheat, he is even allowed to borrow a kor (which
(.‫ משנה ב"מ )עה‬- not allowed to borrow a kor of wheat has 30 sa’ah). Why would having some of the
to repay it in the future, lest the price goes up and produce circumvent the prohibition of sa’ah bsa’ah?
ultimately the borrower is repaying more than what • Rashi - in ‫ ד"ה דינרי‬:‫ מד‬- viewed as if the lender
was lent to him. Allowed to borrow if he has wheat exchanged his se’ah with the one in the
in his personal stockpile even if it is locked behind borrower’s possession. When the price goes up,
a door or his son needs to get it (‫)יש לו‬. Hillel argues it goes up in the possession of the lender.
on this leniency and adds another prohibition that However, the lender does not have 100%
one is not allowed to lend a loaf of bread for a loaf ownership over the wheat (as is evident by the
of bread, lest the price of bread goes up in the fact that the borrower is allowed to consume it)
interim. But if at the time of lending the parties and since the lender doesn’t own the actual
convert the loan of the bread into its monetary worth sa’ah, the borrower can borrow multiple sa’ahs
where the borrower is only obligated to pay that using the one in his possession as “collateral”.
amount of money regardless of the fluctuation of This leniency only applies in this situation of
the price of bread, it is allowed (‫)עשהו דמים‬. lending a sa’ah for a sa’ah because there might
Gemara - in both cases we do not passkin like Hillel. not be a ribbis at all (if the price stays the same)
So, allowed to lend a kg of flour, if the borrower has and even if there is ribbis, the prohibition would
some of the product available (‫)יש לו‬, and allowed only be rabbinic.
to lend a loaf of bread for a loaf of bread since the S”A in ‫ב‬-‫ סימן קסב‬- if the borrower has even a little of
price fluctuation will be so minor that most people the produce being borrowed, he may borrow much
do not mind (‫)דבר מועט‬. more than what he has. Allowed to borrow a dozen
• Rashi - prohibition of sa’ah bsa’ah is rabbinic, so eggs if you have one egg in your fridge.
if the possible price fluctuation in price would be • ‫ ש"ך סק"ו‬- can borrow the whole carton in one
so minute that most people would not mind it, shot (i.e., you do not need to borrow one at a
Chazal permitted it (i.e., ‫)דבר מועט‬. time corresponding to the one egg you have).
• (‫ ד"ה הא‬:‫ ריטב"א )שבת קמח‬- even though every • S”A - to avoid the prohibition of sa’ah bsa’ah, the
loaf of bread is made slightly differently and the lender can gift a small amount to the borrower
one that is being returned might weigh more than and once he owns a bit, the lender can lend a
the one borrowed, it is still allowed, since the large amount to the borrower.
difference is so minute. In other words, even • S”A - can even lend him a small amount (price
allowed to borrow a loaf of bread and pay back fluctuation on a small amount is insignificant)
a bigger loaf of bread if the difference in size is and once he has that small amount he can
so minute that most people do not care about it. borrow much more. But (‫ ש״ך )ח‬and (‫ ט״ז )ד‬note
S”A in ‫א‬-‫ קסב‬- forbidden to lend a sa’ah of flour for a that some disagree and maintain the initial
sa’ah of flour, lest the price of flour goes up, though smaller loan cannot be considered a case of
one is allowed to lend in the common currency. If at yesh lo since a loan is made to be taken out and
the time one borrows the sa’ah he converts it into used. Many Acharonim follow this stricter
its monetary value (where he is obligated to repay approach.
money), permitted (i.e., ‫)עשהו דמים‬. If one lends a • Rama - if the borrower has the produce in
sa’ah for a sa’ah and the price of a sa’ah goes up, someone else’s house, it is still viewed as if he
when the borrower repays the loan, he should pay “has it”, though if someone owes him that

Notes by Phil Americus ‫הלכות ריבית‬ 11 | P a g e

 SCP Business Halachah – Winter ‫תשפ״ה‬
produce, but w/o any way of accessing it, it is not § ‫ – יצא השער‬If there is a set market price for
considered as if he has it. If the borrower states them, which is common in Israel where the
that he has some produce, he is believed and government controls the price of eggs, bread
the lender can lend to him. and some other products.
S”A in ‫ג‬-‫ סימן קסב‬- based on Rashi’s second § ‫ – דבר מועט‬You are borrowing a small amount
understanding of the (:‫ גמרא ב"מ )עב‬that lending a and the fluctuation in the price of these items
sa’ah for a sa’ah is permitted if the product would be so minimal that it would be
borrowed has a set market price known to both the permitted.
borrower and lender. • Rav Moshe - If you gift the product to your
• (‫ ט"ז )ה‬- since there is a set market price the neighbor w/o any expectations of getting it back
borrower can easily go to the store and purchase and then your neighbor pays you back with the
it and it is considered "‫"יש לו‬, where if the price same product and even more of it, it is permitted.
goes up, it is viewed as if went up in the Only permitted if you really give it to him as a gift
possession of the lender. The leniency of ‫יצא‬ and do not expect to be repaid.
‫ השער‬is the same leniency as ‫יש לו‬. Even if the • In most situations borrowing from your neighbor
borrower has no cash to be able to purchase the is permitted either because the neighbor gifts it
produce, it is still allowed since he can borrow to you, or more commonly, you borrow a small
money from someone and buy it. amount (a couple of eggs, some milk) where the
• (‫ה‬-‫ חכמת אדם )כלל קלד‬- a “set market price” is price increase would be minor.
when an item is sold at the same price in all Borrowing milk, eggs, cheese, tissues etc.: Returning
stores even if the price fluctuates every few slightly more than what you borrowed
days. • Ex: Borrowing half a bottle of milk and returning
• (‫יד‬-‫ מלוה ה' )פי"ד‬- only covers products whose a full bottle.
prices are under government regulation (such as • Ex: Borrowed something of inferior value, such
egg, milk bags and sliced bread in Israel). as thin Israeli tissues, are you allowed to return
Summary: Lending produce or any item that will be a similar product of superior value, such as
consumed with a commitment to return even the Kleenex lotion issues?
same produce is forbidden, since the price might • ‫ ריטב"א‬- allowed returning a bit more than you
go up. If it does go up, the borrower should only pay borrowed since no one cares about these small
the monetary value that the produce had at the time amounts.
of the loan, and if the price drops the borrower • (‫עו‬-‫ להורות נתן )ח"ו יו"ד‬- if uncertain about the
should repay the produce. However, there are four exact amount you borrowed and are only adding
instances where Chazal allowed lending a sa’ah for to ensure that the lender is repaid fully on what
a sa’ah: he lent you, it is allowed. Repaying an amount
• ‫ – עשהו דמים‬At the time of the loan, the parties that is clearly more than what you borrowed is
convert the loan of the product into its monetary forbidden.
value, where regardless of the fluctuation in • Ex: If you borrowed a cup of milk, not allowed to
price, the borrower needs to pay back the return a whole bottle.
original value. • (‫ רבית לאור הלכה )עמ' רמח‬- the leniency of ‫"דבר‬
• ‫ – דבר מועט‬You borrowed a small amount where "‫ מועט‬is only when you are returning the same
even if the price goes up, the price fluctuation on product and it is a bit bigger, but retuning a
what you borrowed would be so minor that most greater quantity is forbidden.
do not mind it. Additionally, one is even allowed • Ex: If you borrow 10 eggs, not allowed to return
to borrow an item and return a little more if the a dozen.
amount is insignificant and not noticeable. • (‫יח‬-‫ מלוה ה' )פ"ד‬- if you borrow a jar of olives or a
• ‫ – יש לו‬The borrower has some of the product box of tissues, allowed to return a jar/box from a
being borrowed and even if he has only a little different company, unless it is well known that
bit and it’s in a different location (but accessible), the price of the jar/box you bought is more
he may borrow many multiples against what he expensive, superior in quality or larger than what
has. you borrowed. Ex: thin Israeli tissues vs.
• ‫ – יצא השער‬There is a going market value of the Kleenex lotion tissues.
product being borrowed and since he can buy it, • R. Moshe (as above) - If you initially gifted the
it is viewed as ‫יש לו‬. food/item to your friend without any intention of
Practical Applications getting it back, your neighbor may “give you
Borrowing milk, eggs, cheese, tissues etc.: Returning back” an even superior product or more of what
the same amount you gave him.
• Considered sa’ah bsa’ah, though based on what Borrowing milk, eggs, cheese, tissues etc.: Returning
we learned, there are multiple reasons why it more than what you borrowed, but at the same
would be permitted. price you borrowed
§ ‫ – יש לו‬If you have even a little bit of any of • Ex: You borrow a bottle of chocolate milk - when
the above products or if the lender gives you you go to the store to buy a bottle to return there
a bit as a gift and then lends the rest. is a sale on a bottle that is 20% bigger for the
same price.
Notes by Phil Americus ‫הלכות ריבית‬ 12 | P a g e
 SCP Business Halachah – Winter ‫תשפ״ה‬
• Seems from the '‫ מלוה ה‬that it would be forbidden dollars is forbidden, just as lending a sa’ah of
since it is clearly bigger. wheat for a sa’ah of wheat is forbidden.
• (‫ רבית לאור הלכה )עמ' רמח‬- allowed for a number § For example, if you lend $100 in Israel, when
of reasons: the dollar is traded for 3.7 shekels (i.e., $100
§ 1) The borrower isn’t losing money. = 370 shekels), but when it’s time to repay,
§ 2) The prohibition of ribbis is only rabbinic the dollar is trading at 4 shekels (i.e., $100 =
and it is clear that the borrower is not trying 400 shekels), the lender is getting an extra 30
to pay interest. shekels as interest. Even if the shekel and
§ 3) It is viewed as if the borrower paid back dollar stay constant it would still be prohibited
with money and then took that money to to lend in dollars, since the price could
purchase the new bottle of chocolate milk. theoretically go up. If so, are there any
Gas tank solutions for lending dollars in Israel? Many
• Ex: Borrow a car and fill up the tank of gas before startup companies in Israel take out loans in
returning. I.e., borrowing gas (which will be dollars to be repaid in dollars; is there any
consumed) and returning what he borrowed (or way for this to be permissible?
even more). § Rav Moshe - In the 1980’s in ‫אגרו"מ )יו"ד ח"ג‬
• 2 issues: (‫ לז‬- since the dollar in Israel is accepted and
§ 1) Price of gas constantly fluctuates and used in stores it has the status of currency
lending it (even when returning the same where lending it would be allowed.
amount) would be prohibited similar to sa’ah § Same for Rav Shlomo Zalman Auerbach in
bsa’ah. (‫כז הע' ג‬-‫מנחת שלמה )ח"א‬.
§ 2) Often the borrower will borrow the car with § Rav Ovadia in (‫הליכות עולם )עקב‬, the ‫אור לציון‬
half a tank and return it filled up as an act of (‫ )ח"א יו"ד ד‬and the majority of posskim (see
gratitude. ‫ ברית יהודה פי"ח הע' טו‬and ‫רבית לאור הלכה‬
• Permitted if at the time of the borrowing you (‫ ))פ"ה‬- today the shekel is the main form of
convert the gas into a monetary loan (i.e., ‫עשהו‬ currency in Israel and the dollar is not widely
‫ )דמים‬or if the lender gifts you some of the gas, accepted.
and then you borrow the rest against the little • Four major solutions to this problem.
that you have, i.e., the leniency of ‫( יש לו‬applies 1. For companies taking out a loan in dollars –
if you have some gas in a different car of yours can use the solution of Rav Moshe, where if the
that could be accessible.) borrower is not personally liable there is no
§ Leniency of "‫ "דבר מועט‬- not applicable, since prohibition of ribbis.
in most situations the borrower uses a
substantial amount of gas and there have 2. Signing a heter iska (which covers the interest
been times where the price of gas has on the loan and the price fluctuation of the
skyrocketed overnight. dollar) would also alleviate this issue.
§ Leniency of ‫ – יצא השער‬This leniency of a set 3. For 2 Yeshiva bochrim who want to lend $100
“market price” would not apply in the U.S., to one another, if the dollar value is immediately
since the price of gas varies from one gas converted to shekalim and the borrower agrees
station to another, and the prices (in some to pay back the amount in shekalim (i.e., ‫עשהו‬
locations) fluctuate daily. But in Israel, where ‫ )דמים‬it is permitted. However, this may not be
the price of gas is government regulated, it desirable for the lender if he is worried that the
would apply. price of the dollar might go down and he wants
• If you borrowed the car with a half tank of gas to be repaid all of his $100.
and want to return it with a full tank of gas, that 4. "‫ "יש לו‬- If the borrower has even a single dollar
would violate the biblical prohibition of ribbis (if in his pocket or house, the lender is allowed
agreed upon at the time of borrowing) since you to lend him $100. Similarly, the lender can gift
are returning more than what was borrowed. (or lend) the borrower one dollar, giving him
Best way to avoid this is for the lender to tell the the status of "‫ "יש לו‬where he is now able to
borrower that he is renting the car to you and borrow the rest. Rav Pinchas Vind
the cost of the rental is filling up the tank till the recommends every Yeshiva bachur and
top when finished. Gifting also works (if the seminary student to have a dollar in their
owner is serious), where the lender tells the possession.
borrower that he doesn’t need to fill up the tank, • What to do if you borrowed dollars in Israel w/o
and if he does, it is viewed as a gift. above leniencies?
Lending dollars in Israel (Shiur #8) § S”A in '‫ סעיף א‬- if one violates the prohibition
• Is it permissible? of sa’ah b’sa’ah, and the price of goods went
§ Rashi - currency in every country is viewed up, the borrower should only pay the
as the constant and the price of goods is that monetary value that the item had at the time
which fluctuates in relation to the currency. of the loan and if the price of goods went
§ In Israel where the shekel is the currency, the down the borrower should return the goods.
dollar is viewed as a good that fluctuates and § So, if you lent your friend $100 in Israel which
lending in dollars in order to be repaid in at the time was worth 370 shekels and now is
worth 400, your friend may only pay you back
Notes by Phil Americus ‫הלכות ריבית‬ 13 | P a g e
 SCP Business Halachah – Winter ‫תשפ״ה‬
370 (and you lose the 30 shekels). Similarly, • (‫ז‬-‫ ברית פנחס )פט"ו‬- the leniency of "‫ "יש לו‬only
if when it’s time to pay back the $100 is worth works if the lender would actually use what the
350 shekel, he must pay you the $100 (and borrower has and the prices of both are the
you will lose 20 shekel). same.
Coke vs. Pepsi • So, to borrow the Coke, you need to convert its
• You ask your neighbor if you can borrow a box value into money (i.e., ‫ )עשהו דמים‬or if the
of Pepsi telling him that since you have a couple neighbor gifts you one bottle, you can borrow
of bottles there is no prohibition of sa’ah b’sa’ah many more.
(i.e., ‫)יש לו‬. He happily agrees but tells you that • Alternatively, if the price fluctuation of the box of
he only has Coke and would never drink Pepsi. Coke would be insignificant for you, it is
Are you allowed to borrow from him? permitted.
• Can you borrow a few eggs from a neighbor if • For the eggs, if the price fluctuation of the few
the neighbor only eats organic cage free eggs organic eggs that you borrowed would be
and you only have one regular egg? insignificant for you, it would be permitted.

Case Halacha Heter

Taking out a mortgage in one’s Forbidden biblically Heter iska between the one taking the mortgage
own name for someone else who (even if the bank is and the one using the money
returns payment + interest to not Jewish or has a
bank heter iska)
Taking a loan from the bank in Forbidden biblically
your name, half of which will be (even if the bank is Heter iska between the two partners
used by a struggling partner who not Jewish or has a
will be paying the bank back heter iska)
directly
Adding someone as a user on a Forbidden biblically
credit card or allowing them to (if he does not pay
use one’s credit card and they pay on time)
interest for any late payments
Paying someone to offer a loan to Permitted
a friend
Paying someone to ask someone Permitted
else for a loan
Lender offering a discount on Forbidden biblically
product sold to the lender (if discount agreed
upon at time of
loan)
Early bird discount on a product Forbidden 1. It is in stock (‫ )יש לו‬and seller does not
paid for now and delivered later rabbinically mention it is a discount
(e.g., appliance) 2. No set market value (‫& )לא יצא השער‬
seller does not mention it is a discount
3. Heter iska
4. The seller is a corporation (Rav Moshe),
though the ‫ ברית יהודה‬and others
disagree.
Early bird discount on service Forbidden 1. Worker begins work immediately (even if
rabbinically he verbalizes the discount) or service
begins immediately (Rav Elyashiv)
2. No set market value (‫& )לא יצא השער‬
seller does not mention it is a discount.
3. The service provider is a corporation (Rav
Moshe), though the ‫ ברית יהודה‬and
others disagree.
Early bird discount on subscription Forbidden 1. Heter iska
rabbinically 2. Yearly price is split into monthly charges
3. The subscription company is a corporation
(Rav Moshe), though the ‫ ברית יהודה‬and
others disagree.

Notes by Phil Americus ‫הלכות ריבית‬ 14 | P a g e

 SCP Business Halachah – Winter ‫תשפ״ה‬
BNPL Forbidden 1. Heter Iska (between customer and lender)
rabbinically 2. Three conditions must be met:
I. Seller only mentions the more
expensive option of installments
II. product has no set market price
III. not more than 20% higher than the
current price range (except for real
estate)
Cheaper cash price vs. more Permitted ( ‫חכמת‬
expensive credit card price ‫ ;אדם‬some
disagree)
Car lease converted to sale Permitted if title of
the car is
transferred at the
end of lease and if
buyer is not
responsible for ‫אונס‬
(‫)תורת רבית‬
Borrowing food – returning the Forbidden 1. Neighbors or friends who lend items with
same amount (‫ )סאה בסאה‬of a rabbinically the intent that they are gifts and need not
similar product be repaid (‫)אגרות משה‬
2. Price fluctuation is insignificant for most
people (‫)דבר מועט‬
3. Borrower already has some of the
produce being borrowed or similar type of
produce (‫)יש לו‬, assuming the lender
would actually use that product (e.g.,
returning Pepsi instead of Coke) ( ‫ברית‬
‫)פנחס‬
4. The product has a set market price, even
if it fluctuates every few days (‫)יצא השער‬,
such as government-controlled prices
Borrowing food – returning more Forbidden biblically When not agreed upon at time of loan will be
than one borrowed if agreed upon a set permitted in the following cases:
amount at time of 1. One is unsure of the exact amount
loan. Rabbinically borrowed and adds to ensure the lender
forbidden when not is repaid in full.
agreed upon. 2. Neighbors or friends who lend items with
the intent that they are gifts and need not
be repaid (‫)אגרות משה‬
3. ‫דבר מועט‬
Borrowing food – returning the Forbidden Neighbors or friends who lend items with the
same amount of greater quality rabbinically ( ‫מלוה‬ intent that they are gifts and need not be repaid
'‫)ה‬ (‫)אגרות משה‬

Borrowing a car and refilling the Forbidden 1. ‫ – עשהו דמים‬convert amount of gas into
amount of gas used rabbinically its monetary value.
2. ‫ יש לו‬- The owner of the car gifts some of
the gas to the borrower
3. ‫ יצא השער‬- There is a set market price
(relevant in Israel)
Borrowing dollars in Israel Forbidden 1. Companies borrowing in dollars (Rav
rabbinically Moshe), though the ‫ ברית יהודה‬and
others disagree.
2. ‫עשהו דמים‬
3. ‫יש לו‬

Notes by Phil Americus ‫הלכות ריבית‬ 15 | P a g e