Also follows ISR CB May 2020 increase in contactless transaction ceiling, see #77742.
EMV Standard
Israeli economy is in accelerated process to implement EMV standard at merchants and volume of activity through advanced payments in Israel is expected to increase.
EMV standard makes it possible to accept advanced means of payment and make smart, contactless, mobile phone-based or wearable technology transactions.
A PIN is needed to make smart transactions at merchants, other than by phone/online.
So that customers are ready for change in payment method, ISR CB required banks, credit card companies to allow customers to set own PIN on the cards they have.
Public Awareness Campaign
All customers have ability to replace the code on their smart cards using bank ATMs.
Data from banks, credit card companies show after a campaign in Oct. 2019 to raise public awareness of ability to change PINs, around 20,000 codes changed per month.
ISR CB will soon air an additional public awareness campaign on the matter.
EMV Guidance
More and more transactions are carried out by EMV, including in grocery store chains, electronics stores, fashion and athletic store chains, and at all levels of businesses.
Number of merchants, terminals supporting EMV expected to grow in coming months.
ISR CB issued guidelines on transition to EMV, first stage will be ready by Nov. 2020.
Government is also helping small firms to finance implementation of EMV technology.
Every customer should get to know their PIN and the new transaction process.
Bank will continue to monitor, advance preparations for transition to EMV standard.
Aug. 2020 Publicity Campaign
On Aug. 12, 2020, ISR CB launched publicity campaign on smart payment method.
Follows ISR CB Aug. 9, 2020 press release in Hebrew re the same subject matter.
Merchants must switch to new standard as per deadlines set out in ISR CB directives.
Otherwise they may encounter difficulties honoring payment cards after those dates.
The final deadline for large chains to switch to new standard is the end of Nov. 2020.
Until end of Sep. 2020 government grants available to help small businesses switch.
Smart transactions using a physical payment card either require a secret PIN to be entered for verification, identification or for contactless payments of up to NIS 300.
Mar. 2021 Update
On Mar. 9, 2021, ISR CB announced Israel is switching to the smart payment system.
More 50% payment terminals in Israel support smart payment with over 1/4 number of payment card transactions being carried out via smart payment.
Approximately 2/3 of smart payments are now contactless transactions.
First milestone in EMV framework set out by IRS CB has recently been concluded.
Urged merchants that have not yet completed switch to EMV to contact their merchant acquirer or hardware supplier and to complete the switch before the deadline.
Thus join payment revolution in ISR, benefit from secure, more advanced transactions.
By Jul. 2021 many additional businesses will have joined advanced payment method.
Ahead of next significant milestone on Jul. 31, 2021 when sales in all businesses other than exceptional cases will only be possible via the EMV standard.
Jul. 2021 Allow Flexibility re Transition
On Jul. 20, 2021, ISR CB supervisor of banks issued letter regarding EMV transition.
Updated on progress in transitioning to the EMV standard, and, given issues faced by some businesses due to Covid, delayed transition deadline in some cases to Dec. 31.
(Content published on Jul. 20, 2021; and summary added to Reg-Track Dec. 8, 2021).
Aug. 2022 Final Milestone
On Aug. 16, 2022, ISR CB announced milestone in EMV framework's implementation.
The final milestone re framework all businesses were required to complete switching to (as outlined by ISR CB Governor) was completed in Jul. 2022 with great success.
This step places Israel in line with advanced countries worldwide, upgrades the area of advanced, innovative payments, integral part of transaction experience at businesses.
As of Jul. 2022 approximately 98% of payment terminals in Israel had shifted to EMV system and nearly 88% of total transactions are now carried out in the EMV system.
Near 65% of transactions in system are via smart payment, 81% of those contactless.
Jul. 11, 2023 Completion Update
On Jul. 11, 2023, ISR CB updated on payments EMV standard conversion completion.
At end Apr. 2023, over 99% of payment terminals in Israel successfully converted.
Sheba will support old debit card standard until Dec. 31, 2024, when it will no longer be possible to make transactions with those not complying with the EMV standard.
