Regulatory Alerts2018-12-23
Bank of Israel Amendment to Proper Conduct of Banking Business Directive Regarding Merchant Acquirers
The Bank of Israel amended Proper Conduct of Banking Business Directive no. 472 to explicitly permit merchant acquirers to refuse services to merchants suspected of fraud, deception, or unfair influence on customers. The regulation defines reasonable refusal criteria, such as high chargeback rates and complaints, particularly when elderly customers are involved, and mandates that acquirers establish internal policies for implementation. Acquirers must notify merchants of such refusals unless prevented by legal impediments, with the amendment taking effect within three months of publication.
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