Applicability of Oversight

Applicability of Oversight

The applicability of payment systems oversight is reflected in the definition of “payment system” in the Payment Systems Law. A payment system is defined in the law as “a system of rules, instruments, or procedures for transferring and carrying out payment instructions among its participants, which include its participants and its operator”. This definition makes it possible to oversee a range of systems broadly and establishes the oversight authority for the overall payments system and the existing connections between the various payment system providers operating in it.

Within the framework of payment system oversight it will be ensured that the overall ecosystem is operating in a stable and efficient manner. Accordingly, the payment systems oversight will ensure that stability and efficiency will exist in all existing layers of the entire system. This includes the system operator, system participants, the communication infrastructure, the technical infrastructure, and the agreements among the various entities. In addition, it includes every link in the activity chain of the payment systems and the participants in them, including manufacturers, processors, critical service providers, service bureaus, gateways, and more.

As of now, the oversight is implemented on five central payment systems operating in the market: Zahav (RTGS), CLS, “Credits, Debits, and Payment Transfers” operated by Masav, the Payment Card Services system and the ATM system operated by Shva, as well as the participants operating in those systems. In addition, the payment systems oversight oversees the means of payment schemes and implements this oversight on the Ashrait EMV protocol. Implementing the oversight is dynamic and can include additional systems over time, and a declaration about a system can be canceled afterward.