Israel credit cards are gradually turning into a fashion statement and the preferred mode of transaction. With strict laws in place to regularize the credit industry and check frauds, credit card usage is expected to rise.
Israel Credit Cards Industry
As per EuroMonitor International, there has been spectacular growth in Israel credit card issuance. Although Jewish law prohibits a lender from gaining financial benefits for extending credit to others, an open economy wave has propelled the growth of the credit industry. As per 2008 figures, credit card issuance has risen by more than 50% since 2003. There are more than 5.6 million credit cards in use. Credit card payments for the first quarter of 2009 grossed over US$9 billion. If the trend continues, Israel will soon register its name in the list of cashless economies.
The government is also making efforts to regularize the credit card industry to avoid frauds and consumer exploitation. To this effect, credit card companies are required to make public their complete financial reports for every quarter.
Major credit card companies operating in Israel are American Express, MasterCard, Visa and Diners. American Express has independent operations in the region. However, other companies have joined hands with specialized credit card service providers, such as Cal, Isracard and Leumi Card.
Israel Credit Cards: Issuers
Major financial institutions offering Israel credit card services are:
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Bank Hapoalim
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Bank Massad
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Bank of Israel
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Bank of Jerusalem
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First International Bank of Israel
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Industrial Development Bank of Israel
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Mizrahi Tefahot Bank
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Union Bank of Israel
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UBank
However, Israeli banks follow strict guidelines for the issuance of credit card products. They offer credit cards to individuals who are able to reserve money against credit services. On an average, the deposit amount is around $20,000. However, it varies among banks. Previous month card payments are deducted from the reserve account automatically through the direct debit system. Once the cardholder receives the payment details, s/he can apply against any irregular payment, else the payment is deemed as confirmed. Banks offer higher credit limits on salary accounts and to high-profile business clients.
The Israeli credit card industry is not plagued with scams. However, an individual should take care of the card and related details to avoid such incidences.