Last Updated on September 21, 2021
Latest regulations and tips for making POS purchases and using an Israel credit card – Visa, Mastercard & American Express.
Israel banking made easier!
Starting January 2020 it became a standard for businesses in Israel to implement the PIN code identification method at the Point of Sale (POS). You have probably seen the palm-sized credit card readers around and about and most likely you have had to complete your transaction by providing your 4 digit PIN number. This method of client identification has been in use in some countries for decades but was never implemented in Israel until credit card fraud became more and more prevalent.
By 2023 The Bank of Israel will require the entire economy, except for filling stations, to switch to this payment method as well as the use of smart credit cards.
The use of a smart credit card is likely to reduce the potential for credit card fraud. You may already have a smart credit card in your possession. If you have renewed your local Israeli credit card recently you will notice that your new card has a gold insignia on its face which incorporates a microchip. This micro chip makes it possible to encrypt each deal or purchase separately, in contrast to the permanent encryption that takes place when billing is done using the regular magnetic band.
The smart credit card will ultimately facilitate payments without credit cards, i.e. using digital wallets via mobile phones like GooglePay and other similar technologies.
- Common Hebrew English terms used in the banking industry
- Banking acronyms and abbreviations
- Opening a bank account in Israel
- Detailed information on banking in Israel
- Vocabulaire
POS purchase – an even newer layer of protection
Coronavirus lockdown has kept most of us at home and forced us into using online shopping options. As restrictions are being lifted, shops are opening and consumers are being encouraged to purchase ‘blue and white’ again. Israel now requires a POS (Point of Sale) code (not your PIN number) to make any credit card purchases in a store. This is a new directive from MasterCard, Visa and American Express. There are two ways of obtaining your personal POS code (קוד סודי).
- When you make your first purchase your bank will send your code via SMS directly to your telephone.
- You can also find your secret POS code on you bank’s phone app under ‘Settings’ or ‘Credit Cards’.
Again, you will need this code for all POS purchases so save it or remember it and also remember that this new code (6 digits) DOES NOT replace your PIN code.
Online purchases do not require the new POS code as you have your own CVV code on the underside of your credit card.
