Israel’s
economy is going through an accelerated process making it possible to carry out
secure and smart transactions at merchants using payment cards, mobile phones or
wearable devices (such as watches and gadgets that can be put on) by adopting
the EMV standard. In line with the timetables set by the Bank of Israel, in
recent months consumers have been seeing an increasing number of payment
terminals operating with the advanced technology and are finding that this
method provides an advanced and easy to implement payment experience. By the
end of November 2020, the final date for switching the large chains to the new
standard, consumers will encounter this payment method very frequently.
Supervisor
of Banks Yair Avidan said, “The switch to the smart payment method is a
significant milestone in the development of the payments market in Israel. This
method is convenient, user-friendly, and safer, and marks a real innovation for
the economy. This infrastructure will make it possible to bring in new means of
payment, such as electronic wallets that will be operated via smart phones. The
Bank of Israel will continue to promote innovation in the payment market in
Israel for the public good.”
Bank of
Israel directives establish obligatory timetables for switching to the new
standard, until it is implemented throughout the entire economy. Merchants that
do not work to shift in time, in accordance with the established timetables,
are liable to encounter difficulties in honoring payment cards after the dates
set in the directives.
As such,
businesses are to work already to carry out the shift now, and not wait until
the last minute. It is important to know that until the end of September 2020,
small businesses can use the grants provided for this by the government.
Regarding
the method of payment, in most cases, when carrying out smart transactions at
businesses using the physical payment card, a secret PIN must be entered (the
same code used to withdraw cash from ATMs) for verification and identification.
Customers can change their personal secret code for the payment card to any other
code, which is easy for them to remember.
For
transactions up to NIS 300, with cards that support it, contactless (proximity)
transactions can be executed, meaning placing the card close to the device at
the business, without keying in the secret code.
We urge
customers to verify that they remember their secret code, and to consider if they
want to adjust the PIN code on their own, through a simple and user-friendly
process. Extensive information on the switch to the smart payment method and
other frequently asked questions can be found on the website https://smart-card.org.il (in
Hebrew).