An amendment to a Supervisor of Banks directive will improve customers' ability to track their credit card charges, by increasing the disclosure on monthly transaction statements

20.11.2011
 
An amendment to a Supervisor of Banks directive will improve customers' ability to track their credit card charges, by increasing the disclosure on monthly transaction statements
 
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In line with an amendment to a Supervisor of Banks directive, as of March 1, 2012, credit card transaction statements will detail the vendor's name as it is presented to customers, in addition to the transaction details presented currently. Another added detail will be whether or not a credit card was presented at the transaction.
The demand to indicate the name of the vendor as it is presented to customers is in order to prevent situations in which the vendor is known by one trade name, while on the credit card issuer records and on the account statements it is listed under another name. The non-corresponding names make it difficult for customers to verify the accuracy of the data which appears on the monthly transaction statement, and at times causes unnecessary inquiries to the vendor and credit card issuer.
In addition, the goal of the demand for the issuer to note on the transaction statement whether or not a credit card was presented when the transaction was carried out is to increase customers' awareness and improve their ability to keep track of transactions in which the credit card was not presented at the place of business (such as transactions over the telephone or Internet). There is greater concern by these transactions of fraudulent use of the credit card by a third party, so calling attention to such transactions is important.
Indicating the transaction type on the monthly statement helps to protect the consumer, since according to the law, when there is suspicion of fraudulent use of a credit card in a transaction in which the card was not presented at the place of business, the customer may, within 30 days of notification of the charge, turn to the card issuer and cancel the charge, subject to checking the facts of the incident.
The Banking Supervision Department sees great importance in increasing the information that the card issuer must provide the customer, and in improving the customer's ability to check the information given to him, in order to encourage the public in wise consumer management. This information is likely, as noted, to assist customers to track their activities, find transactions that they did not carry out, and avoid paying for errors in charges.
The directive was amended following the legislative initiative of Knesset members Uri Maklev and Nachman Shai, and resulted in improving disclosure to the customer, within the framework of Proper Conduct of Banking Business Regulation 470 – Debit Cards.
The Banking Supervision Department is available to the public for any issue regarding its relationship with banks and credit card companies. Additional consumer banking information is available at the Bank of Israel website