Credits, Debits, and Transfers
The “Credits, Debits, and Transfers” system (MASAV) is an electronic system for settling shekel transactions (credit and debit orders) that are not paper-based. Such transactions include authorized debits, wage payments, tax payments, etc. The transactions are sent by system participants and organizations authorized to send payment orders directly.
Transactions in the system are conducted by the following entities:
- Organizations – Entities that are party to the credit or debit transaction. An organization operates in the system based on approval granted to it by a participant managing its account, which is responsible for its activity. Organizations may use the system for direct credits, such as wages and payments to suppliers, and direct debits, such as account payments using authorized debits (similar to standing bank orders).
- Participants – Entities that operate in the system in order to execute debits or credit between participants or between payment accounts of end customers.
There are two settlement windows in the system:
- Organizational settlements – Debit and credit orders are settled in the evening of the payment instruction date, by that day’s value.
- Morning settlement – Debit and credit instructions between participants are recorded on the business day following the payment instruction date. The system participants are permitted to return the debits and credits for a number of days following the date of presentation, with returned payment instructions receiving the value of the business date of their presentation.
The faster payment system operated by the Banking Settlement Center (MASAV) company enables participants and organizations to send immediate credit instructions to the system. An immediate credit is a payment in which the transmission of the payment instruction and the final availability of the money for the payment recipient happen in real time (or very close to real time). The beneficiary receives the credit in his account in immediate and final form, within 5–7 seconds from the time the payment instruction is issued.
This means of payment enables the payment recipient to use the money credited to his account immediately, similar to payment using cash, as opposed to most of the common means of payment available in Israel, where the credit to the beneficiary and his ability to use the funds are not immediate.