The Israeli Way of Paying Bills
In Israel, most recurring payments are handled through הוראת קבע (Hora'at Keva) — a standing order that authorizes a company to pull a fixed (or variable) amount from your bank account each month. Unlike a bank transfer where you push money out, a Horat Keva allows the payee to pull money in on a schedule you've authorized.
Within weeks of arriving, you'll set up Horat Keva instructions for rent, phone, internet, electricity, water, municipal tax (arnona), and more. Knowing how to manage them is essential.
Common Uses for Horat Keva
- Rent: Many landlords require rent payment via Horat Keva rather than post-dated checks (though checks are still common too)
- Utilities: Electricity (Hevrat Hashmal), water (Mekorot or municipal water company), gas
- Phone and internet: Mobile carriers and ISPs all use Horat Keva
- Arnona (municipal tax): Can be paid monthly via Horat Keva or as a one-off annual payment (with a discount for paying upfront)
- Gym memberships, streaming services, subscriptions: All pull via Horat Keva
- Insurance premiums: Health supplemental, car insurance, home insurance
- Bituach Leumi: Self-employed people pay quarterly Bituach Leumi invoices via Horat Keva
How to Set One Up
There are two ways to establish a Horat Keva:
- Through the service provider: The company (e.g. your phone carrier) asks for your bank account and branch number (mispar sniph). They submit the Horat Keva instruction to your bank electronically. Your bank will notify you of the new standing order.
- Through your bank: Log into your banking app or visit a branch, and manually set up a recurring transfer to a specific account. This is more common for rent payments to individuals.
How to Cancel a Horat Keva
You can cancel any Horat Keva directly through your bank — you do not need the payee's permission. Log into your online banking, find the "Hora'ot Keva" section, and cancel the instruction. Cancellation typically takes effect for the next billing cycle.
Warning: Cancelling from the bank side stops the payment but doesn't cancel your underlying contract with the service provider. You may still owe money and accrue late fees. Always cancel the service first, then remove the Horat Keva.
Managing Your Standing Orders
Keep a list of all active Horat Keva instructions. Your bank's app shows them all in one place. Review the list every few months — it's common to accumulate forgotten standing orders for services you no longer use.
Key things to check:
- Is the amount what you expect? Providers sometimes raise rates without prominent notice.
- Are there any duplicate instructions?
- Have you cancelled old subscriptions but forgotten to remove the Horat Keva?
What Happens if There's No Money in Your Account?
If a Horat Keva pull fails because your account has insufficient funds, two things happen: the payment fails (and the service provider may charge a late fee), and your bank may charge a "return" fee (typically 10-20 NIS) for the failed transaction. Keeping a buffer of at least 1,000-2,000 NIS in your current account prevents this.