The Bank of Israel has unveiled a new fee reform that will cap monthly debit card charges at 7 shekels, but it does not address the much higher fees, often tens of shekels a month, charged on credit cards. The central bank said it is staying out of the credit card market because it sees competition there and does not believe intervention is justified.
Under the new framework, bank customers who make only two transactions a month in their checking account will pay up to 5 shekels, customers making up to 100 transactions will pay up to 10 shekels, and each transaction above that threshold will cost 1 shekel. The reform is meant to simplify billing for routine checking account services, improve comparability for customers, and make basic banking services easier to understand.
The changes will be rolled out gradually in October 2026 and July 2027. They include a new regulated service called “account management” with a maximum monthly price, a regulated maximum fee for monthly debit card holding, and the option for banks to offer flexible service bundles tailored to customer needs.
Bank supervisor Daniel Hahiasuieli said, “Account management and holding a means of payment from the account are basic services that should be available to everyone at a reasonable cost.” He added that the many available options now create confusion and make comparison difficult, and said the reform is meant to simplify matters, help customers, and strengthen competition and fairness. The bank also said it is reviewing other fee areas, including foreign exchange and securities, and that recommendations from a joint team on securities compensation will be published soon. Lobby 99 criticized the move, saying it preserves high banking costs and reflects Israel’s lack of banking competition.
