Israeli credit card companies possessing the rights to use the brand “American Express” and “Diners club”, announced the gradual reduction of fees for the settlement of accounts with credit cards of these brands 50%.
By 2020, the fees will not exceed of 1.99%. At
“The decline in prices is a direct result of the reforms of banking services aimed at increasing the level of competition in this market, — commented this decision the Finance Minister Moshe Kahlon. — Lower fees will help more than 60 thousand enterprises of small and medium-sized businesses, representing the basis of the Israeli economy, and will also help in our struggle for reducing the cost of living in Israel.”
In addition, the Director General of the Ministry of Finance Shai Babad agreed with the controller of banks at the Bank of Israel Hedway Bar the development of new regulations requiring financial institutions that issue credit cards of international brands, provide clear and detailed tariff rates of each brand and each type of credit card, not to introduce clients to confusion.
Babad noted that small and medium business is still more difficult to obtain advantageous terms of cooperation with the international credit corporations than large companies.
Earlier, representatives of small and medium businesses have repeatedly claimed that the fees for transactions on credit cards “American Express” and “Diners” makes it unprofitable to work with credit cards of these companies: the fees for them, on average, 50% higher than the fees charged to large firms.