Mercantile Discount Bank: what is known about the merger with Discount

## About the bank

Mercantile Discount Bank dates back to 1972, when it operated as Barclays Discount Bank. Since 1993 the bank has been called Mercantile Discount and is wholly owned by Israel Discount Bank, that is Discount. Separate asset data for Mercantile is not published, so we do not give it. The bank's website lists 73 branches, but that data dates from around 2014.

The bank is known for serving the Arab and ultra-Orthodox sectors. According to Discount management, most branches in these sectors will be kept in a merger.

## What is happening with the merger

On 13 July 2026 the Discount board decided to review merging Mercantile into the parent bank. The aim is to strengthen competitiveness and reduce duplicated functions while keeping the Mercantile brand and its areas of specialization. On the second-quarter 2026 results call, management said a decision was expected in the coming months and that the process was being speeded up to avoid prolonged uncertainty.

For a client this means: follow the bank's announcements. If the merger goes ahead, terms, fees and service arrangements may change.

## Account for non-residents and Russians

There are no special terms for non-residents or new immigrants on Mercantile's public pages. The website works in Hebrew, English and Arabic, and the bank publishes no Russian-language offers. General rules for Russians are the same as at other Israeli banks: legal status in Israel, a visit in person and a source-of-funds check.

If you are a newcomer and Russian matters to you, look at the parent Discount, which has a Russian version of its website and an International Private Banking unit.

## Cards and payments

The bank's menu lists three card products:

• Visa Mercantile, the bank's credit card;
• Mercantile Smile, a club card;
• Diners Club and Fly Card, a co-branded card with travel bonuses.

Fees and terms are not given on public pages. Mir and SBP are unavailable: Israeli banks do not work with Russian banks because of sanctions.

## Fees and limits

Fees are published on the bank's website. The Bank of Israel fee reform starts in October 2026.

## What to check before opening an account

• Merger status. Find out whether a decision has been made: fees and service arrangements depend on it.
• Service language. The website is in Hebrew, English and Arabic, so ask whether a branch employee can speak to you in a language you prefer.
• Current number of branches. The figure on the website is out of date, and a branch near home matters if you use cash.
• Card fees. For Visa Mercantile, Mercantile Smile and Diners Club and Fly Card the bank names no prices on public pages.

If you already have a Mercantile account, keep your correspondence and fee schedules: in a merger with Discount you will be able to compare them with the new terms.

## Who it suits

• Israeli residents who want this particular line of cards.
• Clients who are already connected to the Discount group.

A newcomer or non-resident should first look at other banks: Discount, Leumi and Mizrahi-Tefahot.