Using a credit card in Israel | finder.com
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Using a credit card in Israel

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Bring along a travel card with no foreign transaction fees and decline DCC to avoid extra charges.

When traveling 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 and Discover cards. But even with the last two, you shouldn’t find it hard to locate an ATM that accepts them, especially in the larger cities.

Some places accept US dollars, but it’s usually good to have some local currency on hand. You can exchange dollars to local currency at ATMs, the airport or in cities. Note that airports typically have poor exchange rates.

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Potential credit card fees in Israel

When you travel in Israel, you may incur fees depending on your credit card and the currency you decide to pay in. These include:

  • Foreign transaction fees. For every purchase you make in Israel, you could pay a fee of up to 3% of the transaction, depending on your card. This means, you’ll pay $30 in fees for $1,000 spent. To avoid this, get a credit card without foreign transaction fees.
  • Currency conversion fees. When you withdraw cash from an ATM or pay for goods and services, you may be asked whether you want to pay in your home currency. This is called a dynamic currency conversion (DCC), and it can have hidden fees and a poor exchange rate. It’s more cost effective to pay in the local currency instead of using DCC.

Can I avoid incurring both fees?

Yes. Choose a card that has no foreign transaction fees and decline DCC if offered to avoid paying these fees.

Compare cards with no foreign transaction fees

If your credit card already comes with no foreign transaction fees, you’re good to go! Otherwise, consider getting a second card to use when traveling abroad that doesn’t have foreign transaction fees or an annual fee.

Updated October 23rd, 2018
Name Product Currency Conversion Fee Annual Fee APR (Annual Percentage Rate) for Purchases
$550
None (Charge Card)
Get 5X Membership Rewards® points on flights booked directly with airlines or with American Express Travel and 5X points on eligible hotels booked on amextravel.com. Rates & Fees
$250
See Rates & Fees
25,000 bonus Membership Rewards® Points when you spend $2,000 in the first 3 months Rates & Fees
None
$0
13.99% variable
A low, variable APR on purchases, balance transfers and cash advances.
None
$95
17.74% to 26.74% variable
Earn 125,000 Hilton Honors™ Bonus Points after you spend $2,000 or more in purchases with your new Card within the first 3 months of Card Membership. Rates & Fees
$0
17.74% to 26.74% variable
Earn 75,000 Hilton Honors™ Bonus Points after you spend $1,000 in purchases on the Card within your first 3 months of Card Membership. Rates & Fees
$0 annual fee for the first year ($95 thereafter)
17.74% to 26.74% variable
30,000 bonus miles after you use your new card to make $1,000 on purchases within the first 3 months. Rates & Fees
$0 annual fee for the first year ($95 thereafter)
17.74% to 26.74% variable
Enjoy a $0 annual fee on the first year and earn up to 2 Starpoints® for every dollar of eligible purchases. Rates & Fees
None
$195
16.99% variable
Enjoy unique excursions, privileged access to exclusive events and insider opportunities.
None
$0
14.99%, 18.99% or 24.99% variable
Earn unlimited 1.5% cash rewards on purchases. See Rates and Fees.
None
$495
16.99% variable
Mastercard Black Card members receive an annual $100 air travel credit toward flight-related purchases including airline tickets, baggage fees, upgrades and more.
None
$995
16.99% variable
Earn points every time you spend. Luxury Card enhances your purchasing power by providing you with one (1) point for every one dollar ($1) you spend. Every purchase gets you closer to the rewards you want.
None
$0
16.99% to 24.99% variable
An intro offer rewards cardholders with a $250 value (25,000 online bonus points) after spending $1,000 within the first 90 days of account opening
None
$0 annual fee for the first year ($95 thereafter)
17.74% to 24.74% variable
Earn 50,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $625 toward travel when you redeem through Chase Ultimate Rewards®
None
$450
17.74% to 24.74% variable
Earn 50,000 BONUS POINTS after spending $4,000 on purchases in the first 3 months from account opening* — that's $750 toward travel when you redeem through Chase Ultimate Rewards®.

Compare up to 4 providers

Are American Express and Discover cards accepted in Israel?

American Express cards are accepted in Israel. You can use Bank Hapoalim ATMs if you want to withdraw cash with your Amex card.

Discover cards are also accepted where you see the Diners Club International and Discover logos. If you need cash, look for Bank Leumi and Israel Discount Bank ATMs.

Even though Amex and Discover can be used, Visa and Mastercard are more universally accepted in Israel.

Watch out for old banknotes that are worthless

Sometimes, if you exchange dollars to shekels with less-than-scrupulous street-market vendors, you may get old banknotes that are worthless. To avoid this, make sure the banknotes have the words “new shekels” written in English. Keep in mind that you also shouldn’t accept banknotes in poor condition, as they may not be accepted elsewhere when you try to pay.

Should I use my credit card to get cash in Israel?

You’ll likely pay a cash advance fee for each ATM cash withdrawal, which for some cards can be up to 5% of the transaction. This means you’ll pay a $25 fee for a $500 cash withdrawal. Most cards also have a high cash advance APR. Because of this, you might want to look into a debit card, since they usually don’t have a cash advance fee.

ATMs in Israel are called kaspomats. Those that accept foreign cards are labeled 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 an ATM, try another one.

Do taxis in Israel accept credit cards?

In general, they don’t. However, Android and iOs users can download the Gett app and use it to pay for a ride with a card rather than cash.

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 and Discover cards aren’t as popular, they are accepted — especially in the larger cities.
  3. Get a backup 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 that 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. To avoid paying fees, look into getting a travel card without foreign transaction fees — and, if possible, bring a backup card along. Make sure to also use ATMs that belong to banks to avoid the higher fees that privately owned ATMs typically charge.

Frequently asked questions

How to use a credit card in…

Kliment Dukovski

Kliment Dukovski is a writer who specializes in global financial markets and personal finance, with a focus on credit cards. His main goal is to deliver honest and accurate information to help you make the right financial decision. When he's not writing about finance-related subjects, he writes sci-fi stories.

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