Payment Services Law: the sections this site discusses

When the refund is not made despite the notice, the next step is filing a consumer claim based on the amounts charged through the misuse.

What the law provides

Section 24 of the Law sets a framework limiting the user’s liability for misuse of a payment instrument (a credit card, a mobile payment instrument and the like). From the moment the user notifies the service provider of loss, theft, copying or other unauthorized use, the user is exempt from any liability for further use. Before notice is given, the user has limited liability: NIS 75 plus NIS 30 for each day from the time they found out about the theft, loss or misuse until the notice was delivered (and no more than NIS 450 if the notice was delivered within 30 days of the first misuse), or the amount of the transactions actually made, whichever is lower. The limitation of liability does not apply if the misuse was made after the user made the essential component of the payment instrument available to another person, except for handing it over for safekeeping in reasonable circumstances or to the payee in order to make a payment, or where the component was stolen from or lost by that person (section 24(d)). A person who acted with intent to defraud does not benefit from it at all (section 26).

Section 27 sets out the other side of the coin: once the user’s liability is limited under section 24, the service provider must refund the amounts charged beyond the user’s liability limit. Section 29 deals with a “payment transaction with a missing document”: a transaction for which there is no document signed by the payer or record documenting strong authentication of the payer’s identity. A payer who gave notice within 30 days of the charge notice that they did not make the transaction is entitled to a refund of the amount within eight business days. Section 55 repeals the old Debit Cards Law, 5746-1986, which was replaced by the Payment Services Law when it came into force in 2020. The change was meant to adapt the legal framework to modern digital payment instruments that did not exist when the old law was enacted.

A numerical example

A customer notices that her credit card is missing from her bag and immediately calls the credit card company and reports the loss. It turns out that in the time before the notice, transactions totaling NIS 3,000 were made with the card, not by her. Under section 24(c), her liability is limited to NIS 75 plus NIS 30 for each day from the time she found out about the loss until the notice, and no more than the amount of the transactions actually made. Because she gave notice on the same day she discovered the loss, the day of the notice is not counted, and her liability is only NIS 75, not the full amount of the transactions. Had she delayed, NIS 30 would have been added for each day; and in any case, when the notice is delivered within 30 days of the first misuse, the liability does not exceed NIS 450. The credit card company must bear in full every transaction made after the notice was delivered, and section 27 requires it to refund to the user every amount charged to her beyond her limited liability.

You found a charge you did not make: the order of steps under the Law

1. Notify the credit card company or the bank as soon as you find out: from the moment of notice you are not liable for the misuse (section 24(b)), and each day of delay adds NIS 30 to the amount you may have to bear (section 24(c)(1)). You can also ask for the payment instrument to be frozen immediately, as a rule for up to 14 days (section 22).
2. Write down the day on which you found out about the misuse and the time of the notice: notice within 30 days of the first misuse limits your liability to NIS 450 at most.
3. If the service provider did not make it reasonably possible to give notice or to cancel the payment instrument at any time, you are not liable at all (section 24(e)).
4. Follow up on the refund: the amount beyond your liability limit is refunded no later than eight business days from the day of the notice (section 27(a)).
5. Charging you again on the claim that you handed the essential component to someone else or that you acted fraudulently requires a reasoned written notice, as a rule at least 15 days before the charge, and, at your request, also copies of the documents held by the service provider (section 27(b)).

For the detailed guide on credit card disputes, see Credit card chargeback in Israel: an item not supplied, a double charge and charges abroad, and the page Consumer rights and consumer claims.

The sections the site discusses

This page brings together 4 sections of the Payment Services Law that are discussed in 2 guides on this site. The title of each section is the marginal note of the consolidated version of the Law (unofficial translation), not a heading we wrote. The last column links to the guides on this site that discuss that section.

The original text of the law

• Payment Services Law, 5779-2019: text of the Law
• Payment Services Law: consolidated version on Nevo (Israeli legal database)

FAQ

What happens if my credit card was stolen and someone charges it?
From the moment you notified the credit card company or the payment service provider of the theft, you are exempt from liability for any use made after it. Before the notice, limited liability applies (section 24 of the Payment Services Law).

What is the amount of the limited liability before notice is given?
NIS 75 plus NIS 30 for each day from the time you found out about the theft, loss or misuse until the notice was delivered (and no more than NIS 450 if you gave notice within 30 days of the first misuse), or the actual amount of the transactions, whichever is lower (section 24(c)).

Who refunds me the money charged through misuse beyond the liability limit?
The payment service provider (the credit card company or the issuing body) must refund the excess amount to the user, under section 27.

Does the Payment Services Law replace the old Debit Cards Law?
Yes. Section 55 repeals the Debit Cards Law, 5746-1986, which was replaced by the Payment Services Law when it came into force in 2020.

This page collects the references to legislation on the site. The section headings are the marginal notes as worded in the consolidated text of the law, and are not our interpretation. The binding text is the one published in Sefer HaHukim (the official gazette of statutes). The content here is general information and is not legal advice. Translated: 12 November 2026 · Hebrew version updated: 13 October 2026.