#96 Return Policy (Follow Up to #68)
In the past, we mentioned the halacha that a return policy in a Jewish store can be a serious issue of ribbis, charging interest from a borrower. In response to requests for clarification as to how this can be ribbis, let us explain:
When a person buys an item in a store, and the buyer pays the seller, it is normally considered a valid sale. However, if this sale is one that can be returned, it is not necessarily considered halachically a sale, as a halachic sale is a legally binding agreement from which neither party can backtrack. Rather, this type of sale is halachically considered partly a loan and partly a sale, or in short a questionable sale, and can only be established as a sale once it becomes final. Consequently, in effect the "buyer" can be considered lending money to the "seller" if the item is in fact returned. If and when the item is returned, the "seller", or borrower, returns the loan, the purchase price which
now is deemed a loan retroactively. The "seller"/ borrower is not only returning the money, as during those few weeks the "buyer"/ lender also had use of the item which constitutes the ribbis on the loan. That is why it is a serious issue of ribbis, interest.