Q&A: Compensation for a Delayed Shipment — Is There a Concern of Interest Here?
Compensation for a Delayed Shipment — Is There a Concern of Interest Here?
Question
If a customer orders a product from my online store and pays for it—100 NIS for the product and 25 NIS for shipping—and in a situation where I see that the delivery will be late, I compensate him by crediting him the 25 NIS shipping fee, is there rabbinic interest here?
Would the answer change if I already have the product before he orders it, or if I do not?
If I were to give him a 10 NIS discount on the product, would that change anything in the answer?
Until now we have given discounts because this is a sale transaction, and we saw it as compensation for there being a mistake on our side.
But I am trying to understand the laws of interest more deeply, and this thought occurred to me.
Answer
In my opinion there is no interest here at all. This is not payment for waiting on money, but compensation for damage.
Discussion on Answer
In my opinion there is no prohibition at all. It is a discount or a benefit. It is also not being given in exchange for early or late payment.
Thank you, Rabbi, for the response,
The more I read the laws of interest, the more questions it raises for me.
Another question I have:
When paying employees at the beginning of the month, sometimes I waive various amounts for them and even pay more.
For example, I had an employee who was in reserve duty, so at the end of the month there is the pay slip minus the days he was in reserve duty,
and in his salary there are X shekels meant to go toward travel expenses, but the army paid for those days, so ostensibly I do not need to pay; but sometimes I say I do not have the energy or desire to calculate down to the last shekel, and I simply pay him those travel expenses for those days.
In my opinion there is no interest here, because from my perspective the reason I am paying more is as a bonus to the employee, and also it is hard to always get to the very last shekel, so I prefer to forgo the amount and let him have a little extra.
I read that there is even such a thing as verbal interest, and from a common-sense perspective it is a little hard for me to understand the meaning of verbal interest.
Someone did you a favor—say thank you.
As for money, of course, do not pay him interest.
It feels to me like excessive OCD, and when I read these rulings I also start going into a kind of OCD 😊
Indeed, it does seem like this is starting to look like OCD.
There is no interest here, because you are waiving or being lenient with yourself. None of this is payment for waiting on money, nor is it in the framework of a loan.
It is permitted and appropriate to say thank you. What is forbidden is something beyond what you would normally do, and beyond what would naturally be called for in such a situation.
I am working on myself to be less OCD, and the Rabbi helps me and reassures me in his answers.
Thank you very much.
Thank you, Rabbi, for the response.
I have an additional question: giving a customer a little bonus in order to improve the service experience—
is there a concern of interest here?
Here are two possible examples:
1. Upgrading shipping at our expense:
A customer purchased a shipping service that is supposed to arrive within three business days. However, out of a desire to surprise and delight the customer, I decide to upgrade the shipping to a faster option (one day), with no extra charge on his part. This involves only a minimal extra cost of a few shekels on my end, but it could leave a positive impression and a feeling of appreciation with the customer.
2. A surprise gift:
When a customer purchases a luxury item, such as an expensive designer pillow, it is possible to add a small surprise gift to the order, such as a unique keychain. This is a gift the customer does not expect, and it may improve the purchase experience and increase his loyalty to the brand.
Until now I have done the things mentioned because customer experience is important to us, and we want him to be happy with the service and recommend us to his friends.