At only NIS 92.40 per year, the local Bank Hapoalim (LSE:BKHD; TASE:POLI)-issued Isracard credit card is the cheapest in Israel for customers exempt from membership fees. Including annual user fees and transaction commissions, the annual cost comes to NIS 164.44, according to a credit card cost comparison for June 2003.
The Israel Discount Bank (TASE:DSCT)-issued Visa ICC-Cal for customers paying annual user fees is the most expensive Israeli card, at NIS 172.80 per year, including transaction commissions.
Another finding is that there is no significant difference between the annual cost of Bank Leumi (TASE:LUMI)-issued Leumi Card (NIS 96.20) and Visa ICC-Cal (NIS 96.60) credit cards for customers exempt from annual user fees.
The Bank of Israel said that publishing the comparative data on credit commissions was designed to increase competition between the companies, in order to improve service to the public and reduce costs for households.
The Bank of Israel Banking Supervision Department recommends that the public exercise proper consumer behavior with regard to credit cards, in order to avoid excessive costs.
Visa ICC-Cal said in response, “Visa and Diner’s credit cards, which are issued directly by the company, not through the banks, are the most worthwhile for the customer.”
Published by Globes [online] - www.globes.co.il - on June 16, 2003