Bank of Israel moves to promote debit cards

This morning, the Bank of Israel announced a series of measures designed to promote the use of immediate payment debit cards.

The central bank believes that expanding debit card use will boost competition in this area, and lead to savings for both business owners and customers, and also to less use of cash.

Governor of the Bank of Israel Karnit Flug will declare the commission on immediate payment transactions as a price-controlled fee that will have a maximum rate of 0.3% for a year. This compares with a current average commission of 0.7%.

The Supervisor of Banks will issue directives concerning the distribution of debit cards to bank customers, and also disclosure rules and rules for immediate financial settlement in transactions using debit cards.

Supervisor of Banks David Zaken said, "The Bank of Israel has carried out a professional, in-depth examination of the debit card market, at the end of which several measures were formulated that will lead to greater effective competition in debit cards, and to wider use of debit cards, at the same time reducing costs for businesses and households, without impairing the consumer's ability to choose whatever payment method suits him or her."

Published by Globes [online], Israel business news - www.globes-online.com - on February 10, 2015

Bank of Israel moves to promote debit cards

The central bank believes that expanding debit card use will lead to savings for businesses and consumers.