By The Visit Israel Editorial Team · Last updated
Covers medical emergencies, trip cancellation, and lost or stolen cards. SafetyWing plans cost from a few dollars per day and are purchased and activated online before you leave.
Live prices & reviews on SafetyWing
Affiliate link — we may earn a commission at no extra cost to you.
Get coveredvia SafetyWing
Managing money in Israel is straightforward once you understand two things: the local currency (the New Israeli Shekel, ₪), and how to avoid Dynamic Currency Conversion — the hidden fee that catches most first-time visitors at ATMs and card terminals. Get those right, and the rest falls into place.
Israel’s currency is the New Israeli Shekel, abbreviated NIS or ₪ (Unicode: ₪). One shekel divides into 100 agorot, though the agora is rarely used in daily transactions.
Coins: ₪0.5, ₪1, ₪2, ₪5, ₪10
Banknotes: ₪20, ₪50, ₪100, ₪200
The ₪50 note is the most widely circulated denomination for everyday purchases. The ₪200 note is less commonly used and some small vendors may struggle to make change — avoid paying with ₪200 for small purchases under ₪50.
USD and EUR are accepted in tourist-facing hotels and some shops in Jerusalem’s Old City and along Tel Aviv’s beachfront, but you have no control over the exchange rate applied, and change comes back in shekels. Pay in shekels wherever possible.
Bank ATMs in Israel are reliable and widely available in all cities and tourist areas. The best machines to use are those operated by the major Israeli banks:
Standalone machines inside convenience stores, petrol stations, and some hotel lobbies charge higher withdrawal fees and often push DCC conversion more aggressively. Use a bank-branded machine on the street where possible.
Israeli bank ATMs require a 4-digit PIN. If your bank card has a 5- or 6-digit PIN, contact your bank before travelling to have it shortened to 4 digits — many ATMs will not accept longer PINs at all, and you may find your card locked after three failed attempts.
The single most important ATM tip: when the machine (or a card terminal) asks whether you want to complete the transaction in your home currency or in NIS, always choose NIS.
Dynamic Currency Conversion is the single biggest money pitfall for tourists in Israel — and in most other countries. Here is how it works:
When you pay by card at a shop, restaurant, or ATM, the terminal may detect that your card is foreign and offer to convert the charge into your home currency at the point of transaction. The offer looks helpful: “We can charge you £42.80 instead of ₪199 — would you like to proceed?”
What the prompt does not say is that the exchange rate applied is set by the payment terminal provider, not your bank, and it is typically 5–10% worse than your bank’s interbank rate. The provider pockets the difference.
How to decline DCC:
| Scenario | What to do |
|---|---|
| ATM asks “Would you like to withdraw in [home currency]?” | Choose NIS / local currency |
| Card terminal shows “Do you accept conversion?” | Tap No or Decline |
| Staff pre-selects your home currency | Ask them to reprocess in NIS |
If you accidentally accept DCC, the charge will still appear on your card statement — but at the inflated rate. There is no recourse once you have accepted.
Visa and Mastercard contactless are accepted virtually everywhere in Israel — supermarkets, restaurants, hotels, taxis, petrol stations, and most shops. Tap-to-pay is standard.
American Express is accepted selectively. Large hotels and upmarket restaurants take it; everyday cafés and smaller shops often do not. Carry a Visa or Mastercard as your primary card.
Before you travel:
Low-fee card options worth considering for frequent travellers: Wise (formerly TransferWise) and Revolut both offer multi-currency accounts that typically apply the mid-market exchange rate with low or no foreign transaction fees. These are not affiliate recommendations — they are editorially noted as genuinely useful options for travellers who make many card purchases abroad.
Despite Israel’s strong card infrastructure, cash remains necessary in several situations:
Israel’s famous street markets are a cultural highlight — and many stalls are cash-only:
Carry at least ₪150–250 in small notes (₪20 and ₪50) before entering any market.
ATMs can run low on cash on Fridays, particularly in Jerusalem and other cities with large religious communities, as people withdraw for Shabbat shopping early in the day. If your plans involve a Shabbat stay, withdraw the cash you need on Thursday evening or Friday morning before 11am. ATM refills do not happen from Friday afternoon until Saturday night.
Many small local restaurants, vendors, and shops also close from Friday afternoon until Saturday night — so the cash you carry is what you have.
If you need to exchange physical banknotes (USD, EUR, GBP):
| Location | Rate quality | Notes |
|---|---|---|
| Ben Gurion Airport exchange desks | Poor | Convenient but expensive |
| Hotel exchange desks | Poor to fair | Avoid; convenience premium |
| City bureaux de change (Jerusalem Old City, Ben Yehuda St, TLV Dizengoff) | Fair to good | Better than airport; rates vary |
| Bank ATM (withdraw NIS directly) | Best | Recommended approach |
The most efficient option for most visitors is simply to withdraw NIS from a bank ATM on arrival rather than exchanging foreign cash. The ATM exchange rate is set by the international interbank market; a bureau applies a spread on top of that.
For up-to-date NIS exchange rates, check xe.com — never rely on rates quoted in a guide or article, which can be outdated by the time you read them.
Israel uses the New Israeli Shekel (NIS, symbol ₪). Coins come in denominations of ₪0.5, ₪1, ₪2, ₪5, and ₪10. Banknotes are issued in ₪20, ₪50, ₪100, and ₪200 denominations. USD and EUR are accepted in some tourist-facing shops and hotels, but change is always returned in shekels.
ATMs in Israel (particularly bank-branded machines from Bank Leumi, Bank Hapoalim, and Bank Discount) give competitive rates. The key is to always choose to pay or withdraw in local currency (NIS) — if the ATM offers to convert to your home currency on the spot, decline. That option, called Dynamic Currency Conversion (DCC), typically costs 5–10% more. Exchange desks at Ben Gurion Airport offer poor rates; city bureaux de change in Tel Aviv and Jerusalem are better but still inferior to a bank ATM.
Visa and Mastercard contactless are accepted almost universally in hotels, restaurants, and most shops. However, several situations require cash: major markets (Machane Yehuda in Jerusalem, Carmel Market in Tel Aviv, the Old City bazaar), small local cafés, some religious-site entrance donations, and parking meters in older areas. Carry at least ₪200–400 in cash at all times — not to replace your card, but to handle cash-only vendors without inconvenience.
Amex is accepted selectively. Larger hotels and upmarket restaurants generally take it; smaller restaurants, cafés, and everyday shops often do not, due to the higher merchant fees Amex charges. Do not rely on Amex alone. Visa or Mastercard should be your primary card.
Use branded bank ATMs (Bank Leumi, Bank Hapoalim, Bank Discount, Mizrahi Tefahot) rather than standalone or convenience-store machines. Always select NIS, not your home currency — declining the DCC conversion saves 5–10% per withdrawal. Israeli ATMs require a 4-digit PIN; if your PIN is longer, shorten it with your bank before travelling. Withdraw Thursday or Friday morning if your plans include Shabbat weekend — some machines run low on cash as Friday afternoon approaches.
Dynamic Currency Conversion (DCC) is a fee-laden service offered by ATMs, card terminals, and currency desks that converts your purchase or withdrawal into your home currency at the point of transaction. The exchange rate applied is set by the service provider — typically 5–10% worse than your bank's own rate — and the provider pockets the difference. When a terminal or ATM asks whether you want to pay in your home currency or in NIS, always choose NIS. On card terminals, the prompt may be phrased as 'Do you accept the conversion?' — tap No or Decline.
Many stalls in Israel's street markets are cash-only. Machane Yehuda Market in Jerusalem and Carmel Market in Tel Aviv both have a mix: permanent shops with card readers and food stalls or market-trader carts that are cash-only. The Old City bazaar in Jerusalem is predominantly cash. Carry ₪100–200 of small notes before entering any market to avoid the frustration of having a vendor wave you away.
By The Visit Israel Editorial Team · Last updated