Q: Is there a ribbis problem is receiving a discount for a yearly subscription to a magazine or buying a discounted bus ticket for multiple rides?

A: It is possible to permit such an arrangement because prepayment discounts are prohibited only when the discount is explicitly linked to the prepayment or is clearly due to the available usage of the customer’s money. When the discount is not explicitly linked to the prepayment and can be attributed to other reasons, it is permitted. In the case of a subscription, the discount can easily be attributed to the customer’s commitment to purchase the magazine for a full year. Similarly, the discount of the bus ticket is understood as an incentive to ride the bus on a regular basis or a means of saving the driver the hassle of receiving a fare each time. A bus ticket may also be considered yesh lo (having in stock), since the company can provide all the rides immediately.

Therefore, purchasing the subscription or bus ticket at a discounted price is not a violation of ribbis unless the subscription offer explicitly states, “Subscription price is contingent on prepayment in full” or “Pay for a year and save 45%” (Bris Yehuda 23:7(20); The Laws of Ribbis, 7:23,8:24).