Regulatory Alerts2015-06-29
Added
Amendments to Proper Conduct of Banking Business Directive no. 470 regarding Payment Cards
The Bank of Israel amends Proper Conduct of Banking Business Directive no. 470 to mandate the transition to EMV smart card standards and regulate immediate debit and prepaid cards. Issuers must ensure new payment cards support the EMV standard, implement self-selected PINs, and stamp distinguishing marks on debit and prepaid cards. Acquirers are required to connect only EMV-compliant terminals, with specific deadlines for hardware and software certification, and a liability shift mechanism transfers responsibility for non-EMV smart card fraud to the acquirer. The directive also establishes strict timelines for fund transfers in immediate debit transactions and requires detailed monthly disclosure of debit card activity to customers.