Bank of Israel Cuts Fees on Debit Cards and Checks
Translated & summarized from Mignews by baba
The Bank of Israel has initiated a reform reducing fees on debit cards to a maximum of 7 shekels per month and eliminating several other charges, including those for returned checks and inheritance services. A more significant overhaul is planned for July 2027, introducing a fixed fee for account management.
The story in 4 lines · by baba
- Bank of Israel cuts debit card fees to 7 shekels monthly.
- Fees for returned checks and inheritance services are eliminated.
- Mortgage payment date changes capped at 5 shekels.
- A broader reform with fixed account management fees is set for 2027.
The Bank of Israel is implementing the first phase of a reform on current account service fees, effective October 1st. The primary change in this initial stage targets debit cards, where funds are immediately debited from an account. The maximum monthly fee for these cards has been capped at 7 shekels, down from an average of 9 shekels previously. With approximately 1.8 million debit cards in circulation, this reduction is expected to result in significant annual savings for cardholders.
Additionally, banking supervision is eliminating several outdated fees. Financial institutions are now prohibited from charging for account searches and for services related to inheritance matters. The fee previously levied on the issuer of a check returned for technical reasons has also been completely abolished. Furthermore, the cost for changing a monthly mortgage payment date is now limited to 5 shekels for the first four changes within a year.
The second and more substantial phase of the reform is scheduled for July 1, 2027. This phase will replace the current system of paying for each individual banking transaction with a fixed fee for "payment account management." Customers will be automatically transitioned to this new system. While banks can adopt the new system earlier, experts anticipate they will likely delay this due to the costs of updating internal systems and the potential reduction in revenue.
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