An unauthorized charge on a credit card: getting your money back

Service page: Consumer claims and class actions lawyer.

For the wider background on credit card disputes, see: Credit card chargeback in Israel: an item not supplied, a double charge and charges abroad

The Debit Cards Law was repealed: what the Payment Services Law says today

The Debit Cards Law, 5746-1986 was repealed on 14 October 2020, and the Payment Services Law, 5779-2019 applies in its place (section 55). Under it, a person charged for a transaction with a missing document (עסקה במסמך חסר; no signed document) is entitled to a refund. The condition is that they gave notice within 30 days that they did not make it. The amount is returned within 8 business days. The credit card company may charge again only if it is satisfied that the person made the transaction. It must give a reasoned written notice at least 15 days in advance (sections 27(b) and 29(b)). This is not “customer service policy”: it is a legal right with an enforcement mechanism.

Canceling a credit card charge: in which cases you can

• A completely unauthorized charge: theft, fraud, use without consent. The amount is returned within 8 business days of the notice, minus a limited share (sections 24 and 27 of the Payment Services Law). The limit does not apply if you gave the card or the authentication details to someone else, or acted fraudulently (sections 24(d) and 26).
• Canceling a distance transaction: under the Consumer Protection Law, 5741-1981, you can cancel a transaction made by phone or online within 14 days. The cancellation fee is limited to 5% or NIS 100, whichever is lower (sections 14C(c) and 14E). A business that did not return the money is exposed to exemplary damages (statutory damages) (section 31A(a)(4)). The details: Canceling a transaction under the Consumer Protection Law.
• A service or product not supplied: you paid and did not get what was promised, so you are entitled to a refund from the business. The delivery date has passed, and you told the business that you are canceling. Then the credit card company must stop the charge from the date of your notice (section 17 of the Payment Services Law).
• Fraud: a business charged more than was agreed. The credit card company must return the difference to you within 8 business days of your notice. This is under section 28, and for a transaction with a missing document, section 29.

The 30 days you must not miss, and how to count them

The countdown starts on the day the credit card company gave you the notice of the charge, usually the statement (section 29(b)). It does not start on the day of the purchase, or on the day you found out. Say you received a statement on the 1st of the month and found the problem on the 25th. You then have about six days left after the day you found it. The day the notice was given is not counted (section 10(a) of the Interpretation Law, 5741-1981). Contact them today. After 30 days, the section 29 route closes. For misuse of a card, sections 24–27 still apply. Otherwise, a direct claim against the business remains. Sometimes the same charge appears for many customers. Then the direct claim becomes a group cause of action, and representation in class actions and consumer claims is needed.

How soon is the money returned? The deadlines in the law

The table brings together the deadlines set by the Payment Services Law, 5779-2019, by type of case. Does the charge continue after you canceled a subscription paid by standing order from your bank account? See also Canceling the debit authorization at the bank.

A stolen or lost card: special rules

Did you notify the credit card company of the theft or loss? Charges made after the notice are the credit card company’s responsibility. For charges made before the notice, there is a limited liability mechanism (section 24(c)). You are liable for no more than NIS 75 plus NIS 30 for each day from when you found out until the notice. The ceiling is NIS 450 if you gave notice within 30 days of the first misuse. The credit card company is liable for the rest. Make sure you know how long it takes to block a card after the notice, and record when you gave notice.

Debit card, prepaid card and payment by phone: the same rules

The Law speaks of a “payment instrument” and defines it broadly (section 1 of the Payment Services Law). It is any sequence of actions that a payer carries out to give a payment order, with or without a card. So the rights in this guide also apply to an immediate debit card, a prepaid card and payment with a digital wallet. The practical difference is in cash flow. With a debit card, the money has already left your account. So it is worth giving notice on the same day.

The bank or the credit card company rejected your request: what is the next step?

The first step is a written complaint to the public inquiries commissioner (נציבות פניות הציבור) of the bank or the credit card company. According to the Bank of Israel, the commissioner replies in writing within 45 days. In certain circumstances, the reply comes within 60 days (Proper Conduct of Banking Business Directive 308A, הוראת ניהול בנקאי תקין 308A).

You did not get an answer within that time, or you do not accept the answer? You can contact the Consumer Enquiries and Inspections Unit at the Bank of Israel, and attach the commissioner’s reply. The Supervisor of Banks looks into inquiries from the public about their dealings with banking corporations. This is under section 16(a) of the Banking (Service to Customer) Law, 5741-1981 (חוק הבנקאות (שירות ללקוח), התשמ״א-1981). According to the Bank of Israel, the unit also handles inquiries about credit card companies. Contacting it does not involve any payment: Bank of Israel: the Consumer Enquiries and Inspections Unit (in Hebrew).

The second route is the court. An individual’s claim of up to NIS 39,900, as of 1 January 2026, is heard in the Small Claims Court (section 60(a)(1) of the Courts Law [Consolidated Version], 5744-1984). Note: contacting the Supervisor of Banks does not extend a deadline set in legislation (section 16(d)(2) of the Banking (Service to Customer) Law). And according to the Bank of Israel, the unit does not usually intervene in a matter being heard in court.

Two scenarios to illustrate (fictional cases)

Scenario A (fictional case): the credit card company sent the statement of charges on 3 September 2026. It shows a charge from a foreign website where you never bought anything, with no signed document and no strong authentication. You notified the credit card company in writing on 10 September 2026. That is within 30 days of the day it gave you the notice of the charge. So it must return the amount within 8 business days of the notice (section 29(b) of the Payment Services Law, 5779-2019).

Scenario B (fictional case): on 2 October 2026 you found that your card had been stolen and that transactions had been made with it. You notified the credit card company on the same day. You are not liable for misuse made after the notice (section 24(b)). For the use before the notice, your liability is at most the lower of the amount of the transactions and NIS 75. This is because the notice was given on the day of discovery, and the day of the notice is not counted (section 24(c), as of 4 October 2026). The credit card company returns the rest of the amount within 8 business days of the notice (section 27(a)). This does not apply if one of the exceptions in sections 24(d) and 26 applies.

Frequently asked questions

How soon do you have to report an unauthorized charge on a credit card?

For a transaction with neither your signature nor strong authentication: within 30 days of the day the credit card company gave you the notice of the charge (section 29(b) of the Payment Services Law). When the card was stolen, lost or misused, give notice immediately. You are not liable for use made after the notice. For what was done before it, your share grows with each day of delay (section 24).

How soon does the credit card company return the money?

Within 8 business days of the day of your notice. This applies to a transaction with a missing document (section 29(b)). It also applies to misuse of the card, minus your share (section 27(a)). The company may look into the matter afterwards. If it is satisfied that you made the transaction, it may charge again. But only after a reasoned written notice, at least 15 days before the charge.

My credit card was stolen. How much do I have to pay?

For use made after you reported the theft, nothing (section 24(b)). For use made before the notice, you pay the lower of two amounts (section 24(c)). One is the amount of the transactions. The other is NIS 75 plus NIS 30 for each day from the day you found out until the notice. The ceiling is NIS 450 if you gave notice within 30 days of the first use. The limit does not apply if you gave the card or the authentication details to another person, except in certain exceptions. It also does not apply if you acted fraudulently (sections 24(d) and 26).

I was charged more than I agreed, or twice. What do I do?

A charge whose amount was increased without authorization: the credit card company returns the difference within 8 business days of your notice (section 28(a)). Take an additional charge that you did not make, in a transaction with no signature and no strong authentication. It is handled like any transaction you did not make: notice within 30 days and a refund within 8 business days (section 29(b)).

I paid on a website and the product did not arrive. Does the credit card company have to help?

The agreed delivery date has passed, the product was not supplied, and you told the business that you are canceling the transaction. Then notify the credit card company. It stops charging you under that payment order from the date of the notice (section 17(a) of the Payment Services Law). Claim what has already been paid from the business.

The credit card company rejected my request. What next?

First, a written complaint to the public inquiries commissioner of the credit card company or of the bank. If the answer is not satisfactory or did not come, make an inquiry to the Consumer Enquiries and Inspections Unit of the Banking Supervision Department at the Bank of Israel. The second route is a claim: an individual can claim up to NIS 39,900 (2026) in the Small Claims Court. Contacting the Supervisor of Banks does not extend a deadline set in legislation (section 16(d)(2) of the Banking (Service to Customer) Law).