Consumer6 min read10/2/2026

Unknown Card Charge in Israel: When the Money Must Be Refunded

An unfamiliar merchant name on a statement does not yet prove theft, but waiting for the next charge is dangerous. Israeli law distinguishes between a transaction without a supporting document, misuse of a payment instrument, and an ordinary dispute with a merchant—the refund rules differ for each.

Numbers and facts

•30 days—the deadline for submitting a claim concerning a transaction without a document
•75 ₪—the base amount under one method of limiting liability
•30 ₪—the additional amount for each day of delay
•135 ₪—an example of liability for a two-day delay

First Investigate, Then Block Immediately

Check the merchant’s full name, date, and amount in the issuer’s app: a business may appear on the statement under a name different from the one on its storefront. If the transaction is still unfamiliar, immediately notify the card issuer that you dispute it and ask it to block the card or the relevant payment instrument. Keep the statement, screenshots, inquiry number, and confirmation of the block. Simply blocking the card prevents new payments but does not replace a separate request for a refund of the amount already charged.

When the Issuer Must Refund the Charge

Section 29 of the Payment Services Law, 2019 regulates a “transaction without a document”: for example, a remote payment by telephone or online for which there is no document signed by the customer or an admissible record of strong customer authentication and consent to the payment. Under Section 29(b), if, within 30 days from the date of receiving notice of the charge, the customer reports that they did not carry out the transaction or that the amount was increased without authorization, the issuer must refund the disputed amount at its value on the date of the charge. In practice, the refund may initially be provisional: the issuer requests documents and information from the merchant. If they confirm that the customer carried out the transaction, the amount may be charged again after the customer is notified in advance and shown the materials received.

What the Bank and Merchant Will Examine

The key question is not only where the card was, but also exactly how the payer was authenticated. The signed document, merchant and payer details, amount, date, and the record of strong authentication are examined—for example, whether a secret code, password, or another element known to the customer was used. In a remote transaction without such confirmation, the merchant must provide materials linking the purchase to the cardholder. Therefore, the statement “the card was with me the entire time” is useful, but by itself it does not replace an analysis of the payment method and the evidence of consent.

Why Delay Can Cost Money

If a payment instrument is lost, stolen, or misused, the payment service provider should be notified immediately after the problem is discovered. The portion of the loss that may remain with the customer for transactions made before notification depends on how quickly the customer reported the incident. Under one calculation method presented by the Kol Zchut portal, liability is 75 shekels plus 30 shekels for each day between discovering the misuse and providing notice. For example, waiting two days results in an amount of up to 135 shekels under this formula; therefore, the customer should not postpone contacting the provider until the end of the month or until the next statement arrives.

An Unknown Payment and Undelivered Goods Are Different Disputes

If the customer actually made the purchase but the goods did not arrive, this is not considered an unknown transaction. After the agreed delivery period expires, the customer must notify the merchant of cancellation and contact the issuer in parallel: the issuer stops future installment payments but does not refund amounts already paid under this mechanism. If the goods were received and returned, were defective, arrived only in part, or were simply unwanted, the dispute generally must be resolved with the merchant. Choosing the wrong grounds is a common reason for rejection: a customer cannot report card theft when the dispute actually concerns quality or delivery.

When a Claim May Be Rejected and What the Supreme Court Clarified

A refund under Section 29 may be denied if the claim is submitted after the 30-day deadline, the documents confirm the customer’s consent, or the transaction was accompanied by proper strong authentication. Full liability may also be imposed on the customer in cases of fraud on the customer’s part, as provided by the Payment Services Law. In its decision in Case No. 8364/23, the Supreme Court considered four telephone transactions without a document and emphasized that Section 29(b) governs the relationship between the payer and the payer’s payment service provider. How the issuer, acquirer, and merchant subsequently allocate the loss among themselves does not cancel the obligation to consider the cardholder’s timely claim under the rules of the law.

FAQ

Whom should I contact: the bank or the credit card company?

You should contact the issuer—the payment service provider that issued the card and processes the charge. This may be a bank or a credit card company; at the same time, ask it to block any further use of the card.

Will the money be refunded immediately after I dispute the transaction?

If a claim concerning a transaction without a document is submitted on time, the issuer must apply the refund mechanism, but the initial credit may be provisional. If the merchant provides documents confirming the customer’s transaction, the money may be charged again after notice is given.

What should I do if I personally gave a fraudster a one-time code?

The issuer will examine whether an element of strong authentication was used and whether the record confirms consent to the specific payment. The existence of such confirmation may complicate the dispute, so the claim should describe precisely what information was provided, when, and under what circumstances.

Can amounts already paid in installments be refunded if the goods were not delivered?

Under the mechanism for non-receipt of goods, the issuer stops future payments but does not refund installments already charged. First, the merchant should be notified of the cancellation after the agreed delivery period expires, and the confirmation should then be provided to the issuer.

Can I wait for the monthly statement if a suspicious charge is visible in the app?

You should not: upon discovering loss, theft, or misuse, the payment service provider must be notified immediately. The 30-day deadline under Section 29 is not a recommendation to delay making contact, but the outer limit for the special mechanism for disputing a transaction without a document.

What to do next

Immediately check the merchant’s details, block the card, and separately register a dispute with the issuer, keeping the inquiry number. State the date of the charge notification, the amount, how you discovered it, and confirm that you did not carry out the transaction; if the dispute concerns undelivered goods, first document the cancellation with the merchant. If the amount is charged again, request the documents on which the issuer’s decision was based.