Bank of Israel Proposes Direct Digital Disclosures for Credit Card Fees
The Bank of Israel has proposed requiring credit card companies to send semi-annual fee summaries to customers, addressing hidden annual charges exceeding one billion shekels.
Credit card companies in Israel collect over one billion shekels annually from cardholders in fees, predominantly through card maintenance charges. The Bank of Israel has now proposed a regulatory update requiring these companies to proactively send semi-annual fee summaries directly to customers to enhance transparency.
Currently, fee totals are provided semi-annually within standard monthly billing statements. Advocacy group Lobby 99 argued that this information is easily overlooked, particularly by consumers who track transactions via mobile apps without opening full billing statements. Following appeals by the organization to the Banking Supervision Department, the central bank published a draft directive on November 4 mandating accessible digital notifications.
According to Bank of Israel data, total cardholder fees exceed one billion shekels per year. For consumers holding multiple cards, fixed monthly maintenance fees can accumulate to hundreds of shekels annually, alongside charges for foreign currency transactions, cash withdrawals abroad, or early loan settlements.
Advocacy representatives welcomed the proposed measure, noting that proactive digital alerts regarding banking fees have historically raised public awareness and empowered consumers to negotiate fee exemptions or switch providers for better financial terms.
