Interest on an installment transaction
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Question
A gas system was installed in a car. If he pays in cash, it costs him a lower amount; if he pays by credit card in a single payment, it costs him a bit more; and if he pays by credit card in twelve installments, an additional charge is added. The company that installs the system says that the reason for this additional charge is that the credit company gives them the entire payment in cash and charges them a commission, and therefore they themselves do not earn more when the customer pays in installments; only the credit company earns more. Is this considered a loan with interest only with respect to the credit company, which has a heter iska (permission for a business arrangement), or also with respect to the gas company, which does not have a heter iska?
Answer
This is considered a loan also with respect to the company that installs the gas system, since they have the status of an “arev shaluf-datz,” and therefore a heter iska is required with them as well.
Source
Taz, siman 170, se’if katan 2
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