Means of payment schemas

Means of payment schemas create uniform rules for making transactions through advanced means of payment, independently of the payment system through which the payment instructions between participants pass.

The schemas are intended to create agreements between participants in order to set out rules with regard to the use of the means of payment operating under that schema.  In order to ensure that transactions with that means of payment are secure and efficient, and in order to manage the arrangements between the participants, the schemas set out many rules for such activity, such as division of responsibilities; dispute resolution; information security standards, and interchange fees.

Examples of the means of payment schemas operating in Israel:

1. Mutual recognition agreement – In February 1984, an agreement was signed between banks, according to which each of the participating banks undertook to enable customers of the other participating banks to use its ATMs.

2. Local agreement – In May 2007, an agreement was signed between the credit card companies, according to which each of the credit card companies would enable interchange transactions with the other companies in the agreement. In addition, the agreement established the “Ashrait” interface for interchange settlement by payment cards through SHVA.

3. “Ashrait EMV Protocol” – In March 2020, the organization for managing the EMV terminal protocol in Israel was established. The organization was established in order to manage the protocol in Israel, and operates in the specification, development, and operation of the protocol.  The protocol is a technological specification and message structure using the EMV protocol, which serves in the transfer of transactions and information between entities in the payment card transaction chain in the segment between the terminal and the merchant acquirer (or its processor), except for cash withdrawals from ATMs.