Free Flights, Points or Cashback: Which Credit Card Gives More?

A fierce battle has broken out in Israel’s credit-card market after El Al’s frequent-flyer club moved its flagship Fly Card, with about 550,000 customers, from Cal to Isracard. Cal responded by launching FlyAll with Issta, offering existing Fly Card customers a fast digital switch without replacing their card, and saying about 10,000 people joined on day one. Max quickly updated its SkyMax card, and Bank Hapoalim’s Banco Internacional rolled out a new Beyond benefit, intensifying competition but also making comparisons harder for consumers.

The problem, the article says, is that each company uses a different rewards system. Fly Card is the classic airline-loyalty model, with points redeemable only on El Al, while FlyAll and SkyMax are open cashback-style wallets tied to outside travel companies, allowing bookings on all airlines abroad, and in Max’s case also in Israel. Beyond lets users accumulate money in a travel portal and also convert points into seven foreign airline clubs. The real test comes in year two and later, after introductory perks disappear.

Cal’s Year 1 package includes a full card-fee waiver and lower foreign-exchange charges, but in Year 2 it cuts local-shopping cashback and raises FX fees. Max and Banco Internacional mainly start charging card fees in the second year. Fly Card stands out for having relatively uniform terms, without special Year 1 promotions in most cases. Foreign-exchange fees can be partly avoided at Max and Banco Internacional through their FX wallet or account, but users still pay a conversion spread.

The article also flags the fine print: Diners cards are not accepted by an estimated 30% to 40% of Israeli businesses, especially small ones; government, municipal and utility payments do not earn points; Isracard even caps monthly accrual on such payments; and signup gifts usually require early or minimum spending. In a simulation of a household spending 15,000 shekels a month from year two onward, Cal’s FlyAll Premium produced net value of 853 shekels a year, Banco Internacional’s Beyond Platinum 615 shekels, and Max’s SkyMax Premium 410 shekels. Fly Card yielded about 46,000 points, which Isracard said could buy two Madrid tickets, six Athens tickets, or a business-class ticket to Budapest. The article concludes that the best card depends on travel habits and spending levels, and that heavy card users are often subsidized by lighter ones.