Israel Launches New App Service for Depositing Future-Dated Checks

Starting this month, a new banking service allowing customers to deposit future-dated checks through their mobile banking apps is being rolled out across Israel. This new feature, known as a "deferred check" or "check dahuy," enables users to deposit checks written for a future date without needing to visit a physical bank branch. The service is particularly beneficial for individuals who receive checks in installments, such as rent payments, allowing them to deposit a series of checks at once.

Previously, depositing such checks required a trip to the bank and often incurred significant fees, ranging from 10 to 12 shekels per check. The new app-based service offers a more convenient and cost-effective solution. While still carrying a fee, it is considerably lower than in-person transactions. For example, Bank Leumi charges 3.24 shekels per check for app deposits, compared to 9.6 shekels online or via terminal, and 12 shekels at a teller. Bank Discount charges 9.5 shekels for app or online deposits, versus 15 shekels at a teller.

Depositing checks with a past-due date is much cheaper, costing around 6 shekels at a teller and 1.5 to 2 shekels through digital channels. Even ATM deposits for deferred checks cost 6 shekels. The app service aims to provide greater convenience, eliminating the need to visit ATMs or bank branches.

Initially, the app service will have limitations, allowing users to deposit up to 13 deferred checks per transaction, with a total sum not exceeding 100,000 shekels. Additionally, only checks with two parallel lines (crossed checks) and marked "only for this recipient" will be accepted, preventing endorsement to another party. The service is expected to be fully available at most major commercial banks, including Leumi, Hapoalim, Discount, Mizrahi, Union Bank, Yahav, Postal Bank, and the digital bank One Zero, by the end of October.