Using a credit card in Israel

When travelling around Israel, you won’t have an issue paying with a credit card. You’ll find Mastercard and Visa to be more widely accepted than American Express cards. But you shouldn’t find it hard to locate an ATM that accepts Amex, especially in the larger cities.

There are a few potential fees to watch out for when you’re paying with plastic:

• Foreign transaction fees. A non-sterling fee of around 3% per transaction can apply, depending on your credit card. That’s £30 in fees for every £1,000 spent with your card.
• Merchant currency conversion fees. Sometimes, a merchant will offer to take payment in pounds instead of in shekels. This is known as a dynamic currency conversion (DCC) and often comes with higher fees than if you paid in the local currency.
• Cash advance fees. Your card issuer may charge a fee for cash advances (withdrawing cash using your credit card). Cash machine providers sometimes charge a fee too.
• ATM fees. The provider of a cash machine may charge a fee if you withdraw cash using your card.

It’s also worth noting that when it comes to cash advances and non-sterling transactions, card issuers will often start charging interest on the day your account is debited, rather than the customary “up to 55 days interest-free” that applies when you clear your balance in full each month.

Cash machines in Israel are called kaspomats. Those that accept foreign cards are labelled in English. Some will display English by default as soon as you put in your card, while others will have the option to change the language. If your card isn’t accepted by a cash machine, try another one.

Here’s a section of a fairly typical T&Cs document showing the charges applicable when spending abroad:

How can I avoid the fees?

Consider taking out a credit card offering commission-free currency conversion (see table below), even if you only use it when you’re out of the country. Once you have one of these cards, if a merchant offers to take payment in pounds, say you’re happy to pay in shekels, since you know your own bank won’t charge you for the privilege.

Generally speaking it’s not a great idea to use a credit card to withdraw cash, but some travel credit cards won’t penalise you for this either. Finally, make sure to check whether the ATM you use is going to charge a fee. Bank ATMs are generally a safer bet than those in convenience stores or bars.

Chip-and-PIN credit cards

In Israel, chip cards are widely accepted. Some will require a PIN, others will not. Know that if your PIN is longer than four digits, it may not be accepted.

Is it safe to use my credit card in Israel?

Yes, it’s safe to use your card in Israel. However, for added security, we suggest following a few precautions:

• Use an ATM within a bank. ATMs that belong to a bank generally don’t have any fees, whereas privately owned ATMs do.
• Take two credit cards. This can be handy in case you lose one of your cards somehow. You can keep your reserve card in your hotel safe and only take it out in case of emergency.
• Keep your card in sight. Although it’s rare in Israel, card cloning can happen. To prevent this, always keep an eye on your card.

How to prepare before traveling to Israel

1. Get a credit card without foreign transaction fees. By doing so, you can keep your hard-earned cash in your pocket instead of getting dinged with a charge every time you make a purchase.
2. Opt for a Mastercard or Visa. They’re more widely accepted in Israel. While American Express cards aren’t as popular, they are accepted, especially in the larger cities.
3. Get a back-up card. Keep it in your hotel room safe, just in case you lose your primary card.
4. Take some cash. Avoid exchanging currency at the airport, but if you have to, only exchange small amounts to pay for the ride to your hotel. Also, remember that US dollars are accepted in most popular tourist spots.
5. Inform your bank you’re traveling to Israel. Your bank may consider foreign transactions to be fraudulent and block your card if it’s unaware you’ll be out of the country. You can also ask your bank if it has any partner banks in Israel to cut down on ATM fees.
6. Keep your bank’s phone number on hand. Call your bank if you happen to lose your card or if you have any questions.

Bottom line

Credit cards are widely accepted in Israel, so you shouldn’t have a problem paying with plastic in most places. Just be careful to not incur fees that you can otherwise avoid. With a decent travel credit card, you’ll avoid paying foreign transaction fees. By simply declining the DCC when offered, you’ll also avoid a poor exchange rate or a commission.

Compare cards with fee-free currency conversion in Israel

1 - 5 of 22

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Name	Product UKCCF	Finder Score	Finder score	Purchases	Annual/monthly fees	Initial credit limits	Representative APR	Incentive	Link
Monzo Flex Additional account needed		3.9 ★★★★★	★★★★★ Expert analysis	0% if paid in full monthly or over 3 months. Reverting to 29% (variable) in 6, 12 or 24 monthly payments.	£0	Min. limit not specified, max. limit not specified.	29% APR (variable)	Representative example: When you spend £1,200 at a purchase rate of 29% (variable) p.a., your representative rate is 29% APR (variable).	Go to site Read review Compare	loading Fetching your data...
Santander All in One Credit Card		4.4 ★★★★★	★★★★★ Expert analysis	0% for 15 months reverting to 23.9%	£3 per month	Min. limit £500, max. limit not specified.	29.8% APR (variable)	0.5% after £1 of monthly spend. Maximum of £10 cashback paid per month. Cashback paid Monthly into Card Account. Maximum spend for cashback purposes is limited to credit limit. Representative example: When you spend £1,200 at a purchase rate of 23.9% (variable) p.a. with a fee of £3 per month, your representative rate is 29.8% APR (variable).	Check eligibility Read review Compare	loading Fetching your data...
118 118 Money Guaranteed Rate Card		3.8 ★★★★★	★★★★★ Expert analysis	49%	£0	Min. limit £500, max. limit not specified.	49% APR (variable)	Representative example: When you spend £1,200 at a purchase rate of 49% (variable) p.a., your representative rate is 49% APR (variable).	Check eligibility Read review Compare	loading Fetching your data...
Yonder Credit Card Finder Award		4.5 ★★★★★	★★★★★ Expert analysis	29.94%	1 month for £0, £15 per month thereafter	Min. limit not specified, max. limit not specified.	66.7% APR (variable)	First month free for new members, £15 p/m thereafter. Plus, 10,000 bonus points. Earn 5 points per £1 spent and up to 25 points per £1 at selected partners. Membership includes worldwide travel insurance, no FX fees and use your points towards any flight. Representative example: When you spend £1,200 at a purchase rate of 29.94% (variable) p.a. with a fee of £15 per month, your representative rate is 66.7% APR (variable).	Check eligibility Read review Compare	loading Fetching your data...
NatWest Credit Card		4.7 ★★★★★	★★★★★ Expert analysis	12.9%	£0	Min. limit £250, max. limit not specified.	12.9% APR (variable)	Representative example: When you spend £1,200 at a purchase rate of 12.9% (variable) p.a., your representative rate is 12.9% APR (variable).	Read review Compare	loading Fetching your data...

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Frequently asked questions

• How can I send money to Israel?

  If you lose your card or it’s blocked for some reason, you can use an international money transfer provider to quickly and easily send money to Israel.

• What is the currency used in Israel?

  Israel’s currency is the shekel. Its code is ILS and its currency symbol is ₪. Aside from ₪, you may also see it expressed as S or NS.

  If you withdraw cash from an ATM, you’ll get banknotes of 20, 50, 100 or 200. Banknotes of 50 and 100 are most common in Israel. Small stores don’t like to take 200 bills because they may not always have the change to break them.

  You can also pay with US dollars, especially in popular tourist spots. However, the exchange rate you get may not be as favourable as if you paid in shekels.

• What is the pound to shekel exchange rate?

• Which banks operate in Israel?

  The largest banks in Israel are:

  • Hapoalim
  • Bank Leumi
  • Discount Bank
  • Mizrahi-Tefahot Bank
  • First International Bank

  You can also find these international banks in Israel:

  • BNP Paribas Israel
  • Citibank Israel
  • HSBC Israel
  • Barclays

  If your bank has a partnership with any of these institutions, you may be able to avoid fees on ATM cash withdrawals.

How to use a credit card in…

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Chris Lilly

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Chris Lilly is Head of publishing at finder.com. He's a specialist in personal finance, from day-to-day banking to investing to borrowing, and is passionate about helping UK consumers make informed decisions about their money. In his spare time Chris likes forcing his kids to exercise more. See full bio

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