Last updated: 27 July 2026

The employee expense card Israel businesses need most is one that works with Israeli banking infrastructure, handles NIS and foreign-currency expenses, and doesn’t require employees to spend their own money first. CWS Israel’s prepaid corporate debit card does exactly that — and you don’t need a local Israeli bank account or legal entity to issue one.

Below is everything an employer needs to know: how the card works, what it costs employees (nothing), how it compares to reimbursements, and the three steps to getting your team set up.

What Is an Employee Expense Card in Israel?

An employee expense card — sometimes called a corporate debit card or company prepaid card — is a card issued in the employee’s name, funded by the employer, and limited to approved spending categories. Unlike a personal credit card used for business expenses, the money is already on the card before the employee spends it. There is no personal liability, no monthly statement reconciliation, and no waiting for a reimbursement transfer.

In Israel, this matters more than in most markets. Israeli employees are accustomed to receiving a toshev (expense allowance) via payroll, but the traditional route involves cash advances, receipts, and a payroll adjustment the following month. A prepaid corporate debit card collapses that process: the budget is set, the card is loaded, and the spend is automatically categorised.

• No personal funds used — employees spend company money, not their own
• Pre-set limits per card, per category, or per period
• Real-time visibility on what was spent and where
• Works at any merchant that accepts Mastercard / Visa in Israel and abroad
• Eliminates the end-of-month receipt-collection process

How the CWS Israel Employee Expense Card Works

CWS Israel issues the card as part of its employer-of-record and payroll management services. The card is tied to the employee’s employment record and funded from the employer’s account. You set the rules; the employee spends within them.

Practically, the setup looks like this: the employer defines the monthly card budget and any category restrictions (fuel only, travel and accommodation, client entertainment, etc.). CWS loads the card and provides the employer with a dashboard showing transactions in real time. At month-end, the spend is summarised in the payroll report — no separate expense system needed.

Employee Expense Card vs. Reimbursement in Israel: A Comparison

Most Israeli employers default to the reimbursement model because it requires no upfront system. The hidden cost — in employee friction, finance-team time, and delayed reconciliation — is significant. Here is how the two approaches compare in practice:

For a deeper look at this comparison, see our dedicated page: Corporate Debit Card vs. Reimbursements in Israel.

Who Can Get an Employee Expense Card in Israel?

Any employee whose employment is managed through CWS Israel — whether via employer of record, direct payroll management, or the CWS Freelancer Shield arrangement — can be issued a card. There is no minimum seniority requirement and no Israeli bank account required on the employee’s side.

Cards are most commonly issued to:

• Sales and field staff with regular travel and client entertainment costs
• Remote workers who purchase software subscriptions, co-working memberships, or home-office equipment
• Tech employees who need to run cloud infrastructure or SaaS tools on the company account
• Freelancers and contractors working under the CWS Freelancer Shield who need a clean separation between personal and business spending
• Managers who handle team expenses across multiple employees

There is no maximum number of cards per employer. Limits are set per card, so a team of 30 can each hold a card with different monthly budgets and category permissions.

Tax Treatment of Employee Expense Cards in Israel

In Israel, employee benefits and expense reimbursements are governed by the Israel Tax Authority. The key rule: expenses reimbursed against a legitimate business purpose are not taxable income to the employee. A prepaid card used strictly for approved business expenses falls into the same category — the spend is a business expense for the employer and not a benefit-in-kind for the employee.

Where cards are used for mixed personal-business spending (for example, a monthly travel allowance that doesn’t require receipts), the personal-use portion may constitute a taxable benefit (shovi kessef) and must be reported on the employee’s payslip. CWS Israel’s payroll team handles this calculation and ensures correct reporting — employers do not need to manage it separately.

How to Get an Employee Expense Card for Your Israeli Team: 3 Steps

1. Confirm employment status
   The card is tied to employment managed by CWS Israel. If your employees are not yet on a CWS payroll or EOR arrangement, the first step is onboarding them — typically 3–5 business days. Learn about EOR services in Israel →
2. Define limits and categories
   Tell us the monthly budget per card and any category restrictions. You can set different limits for different employees. CWS will configure the cards before issue.
3. Cards issued, dashboard activated
   Physical or virtual cards are issued directly to employees. You receive login credentials for the spend dashboard — real-time transactions, balance alerts, and month-end export for your finance team.

Frequently Asked Questions