Alphacard would clear for those businesses for which it has a clearance license. Till now ICC cleared the transactions.
Alphacard is negotiating with Bank Hapoalim to obtain the right to clear the Bank Hapoalim issued Visa credit cards. Bank Hapoalim issues local Visa credit cards to bank clients wishing to use the Visa credit card. The license to issue credit cards does not include the right to clear the transactions, and does not resemble the license awarded by Visa International to ICC and Alphacard.
To date, Bank Hapoalim - Visa cards have been cleared by ICC. According to the agreement taking shape between Alphacard and Bank Hapoalim, Alphacard will clear the transactions for Bank Hapoalim in businesses with which it comes to a clearance agreement.
Sources at ICC continue to believe that Alphacard’s entry into the market is being delayed by operational and organizational problems, though Alphacard denies this emphatically. The assessment is that an agreement with Bank Hapoalim will bring about further cooperation between Alphacard and the bank, which issues and markets Isracard and American Express.
Alphacard General Manager Yaakov Dior denied negotiations were being held with Isracard. Sources at Bank Hapoalim emphasized that only bank-issued Visa cards were being discussed.
An agreement with Bank Hapoalim would give Alphacard a firmer grip in the clearance market, which is the primary source of profits for the credit card companies.