Israeli Credit Card Market Heats Up With New Rewards Programs

The Israeli credit card market is seeing intense competition, primarily focused on two main reward categories: flight miles and cashback. Consumers face a complex decision in choosing the card that offers the best value for their monthly spending, with differences in accrual rates, redemption options, and restrictions varying significantly between providers.

In the flight miles sector, CAL offers the FlyAll card, which functions as a Diners card in Israel and a Mastercard internationally. It provides 1% accrual for the standard card and 1.2% for the Premium version in the first year, dropping to 0.75% and 1% respectively from the second year. Points are redeemable only on flyall.co.il for travel and expire after 24 months, with no option to convert them to El Al's Matmid frequent flyer program. Max offers the SKYMAX program, with accrual rates of 1 point per 160 NIS for standard transactions and 1 per 130 NIS for the Premium tier, which requires an average monthly spend of 8,000 NIS. Points are redeemable on MAX TRAVEL and expire after three years. Cardholders spending 8,000 NIS monthly receive four monthly 'treats.' Isracard's FLY CARD, in partnership with El Al, directly converts points to the Matmid program. Premium tiers require meeting spending or status criteria, with accrual rates ranging from 1 point per 5 NIS to 1 point per 4 NIS, and better rates for foreign currency purchases. Premium cardholders also earn 'diamonds' for El Al status. A monthly cap of 30,000 NIS applies to accrual on excluded categories unless the cardholder has Gold status or higher with El Al.

For cashback, CAL's CashCal Pro offers 1% on spending up to 10,000 NIS and 1.5% above that in the first year, decreasing in the second year. Monthly accrual is capped at 450 NIS, and annual at 5,400 NIS. Redemptions are via BUYME vouchers, with a minimum of 50 NIS per redemption, and unredeemed points expire March 31st of the following year. Isracard's CashBack+ offers 1% in the first year and 0.75% in the second, with a monthly cap of 400 NIS. Redemptions are via Isracard gift cards, and points expire at the end of the following calendar year. Max's MAX Back Total provides 1% in the first year and 0.75% in the second, with flexible redemption options including gift cards, restaurant cards, direct cash deposit with interest, SKYMAX miles, or even cryptocurrency via Bits of Gold. Points expire after three years. Spending 8,000 NIS monthly on a Max card can also grant four 'treats.'

The optimal card choice depends on individual spending habits, loyalty to specific airlines, and preference for travel vouchers, flights, or advanced savings and investment options. For El Al loyalists, the FLY CARD is recommended. For flexible travel options, SkyMax and FlyAll are suitable. For heavy spenders seeking cashback, CashCal Pro offers high potential returns. MAX Back Total stands out for its redemption flexibility, allowing investment in crypto or interest-bearing accounts. Isracard CashBack+ is presented as a solid option with simple accrual and promotional offers. Ultimately, the best card aligns with monthly spending and desired rewards, provided users track point expiration dates.