Israel Allows Mobile Deposit of Post-Dated Checks

Bank of Israel announced that starting September 2, customers will be able to deposit post-dated checks through their banking apps, a service previously limited to checks with immediate payment dates. This new feature will be rolled out gradually over the coming weeks, with full operation expected by October. The change means individuals can deposit a check upon receipt, even if its payment date is weeks or months away. The deposited check image is stored by the bank and automatically presented for payment on the scheduled date, eliminating the need for the customer to re-deposit it.

Initially, the service will support checks up to 100,000 shekels with payment dates up to 13 months in the future. It is intended for crossed checks, marked "for beneficiary only," and will be available 24/7. Unlike branch deposits, the physical check will remain with the customer after digital deposit. Magnetic stripe details and payment dates will be shared between banks to prevent duplicate deposits. Participating banks include Bank Hapoalim, Bank Leumi, Discount Bank, Mercantile Discount Bank, Mizrahi Tefahot Bank, International Group, Bank Yahav, ONE ZERO Bank, and Post Financial Services.

Despite the widespread shift to digital payments, checks remain a significant financial tool in Israel, with an annual volume of approximately 640 billion shekels, accounting for about 5% of major payment method activity. Bank of Israel anticipates this new capability will save customers time and costs, reduce branch visits, and offer operational savings for banks. Ofer Golan, head of payments and clearing at Bank of Israel, stated that checks are still a substantial payment method, and depositing future-dated checks upon receipt simplifies the process for customers. Daniel Hachiyashvilli, the Supervisor of Banks, added that the service caters to households and small businesses using post-dated checks, enabling a previously manual process to be handled digitally via the app.