Travel money in Israel: cards, cash, and what to sort before you fly
Israel is one of the easiest countries in the region to pay your way through. Cards work almost everywhere, contactless is the norm in cities, and you will rarely be stuck hunting for a cash machine. That said, a handful of local habits catch first-time visitors out, and a few of them are worth sorting before you leave home rather than at a shop counter in Jerusalem.
This guide covers the currency, how people actually pay day to day, what to do about your bank cards, and the quirks that only make sense once someone explains them.
The currency
Israel uses the new Israeli shekel, currency code ILS. You will see it written as ₪, and you will hear it called simply the shekel. Notes and coins are decimal, and the agora is the subunit, although in practice almost everything is quoted in whole shekels.
If you want to see where the shekel sits against your home currency before you travel, our dollar to shekel converter gives you a live figure. It is worth a look the week before you fly, and again the day you land, so you have a rough mental anchor rather than doing sums at the till.
One naming quirk to note: the shekel is not pegged to any other currency, and it is not the same as the old Israeli pound or the old shekel, both of which were withdrawn decades ago. If you find historic notes in a family drawer, they are keepsakes rather than spending money.
How people actually pay
Card is the default. Contactless payment is widespread in Tel Aviv, Jerusalem, Haifa, and the other larger cities, and most cafes, restaurants, supermarkets, pharmacies, and museums take it without a second thought. Visa and Mastercard are broadly accepted. American Express is accepted in a narrower range of places, so treat it as a second card rather than your only one.
Mobile payment through a phone or watch works in the same places contactless cards do.
Cash still matters in a few settings:
- Small stalls in markets such as Mahane Yehuda in Jerusalem or the Carmel Market in Tel Aviv
- Some independent taxis, although app-based rides are card-friendly
- Rural bakeries, roadside fruit stands, and tiny family-run places
- Anywhere with a handwritten sign, as a rule of thumb
Carrying a modest amount of cash for a day out in a market is sensible. Carrying large amounts is not necessary.
Cash machines and getting shekels
Cash machines are common in cities, at the airport, at major bus and rail stations, and outside bank branches. They are considerably thinner on the ground in the Negev, in the Golan, and on quieter stretches of the Dead Sea shore, so top up before you head somewhere remote.
Two practical habits:
Always choose to be charged in shekels. When a cash machine or card terminal offers to convert the amount into your home currency for you, that is dynamic currency conversion. Decline it and pay in the local currency instead. Your own bank will then handle the conversion, which is almost always the better outcome.
Prefer bank-branded machines. Machines attached to a bank branch tend to be more reliable and better maintained than standalone units in convenience stores and tourist strips.
Sorting your cards before you go
Do this before you fly, not after.
- Tell your bank you are travelling. Many banks no longer require it, but a card frozen on day one of a trip is a genuinely miserable way to start a holiday. A two-minute note in your banking app removes the risk.
- Check your card actually works abroad. Some basic and youth accounts have foreign transactions switched off by default.
- Carry two cards from different networks, stored separately. One in your wallet, one in your bag. If a card is swallowed, lost, or blocked, you are not stranded.
- Know your PIN. Chip and PIN is used for larger purchases, and a signature is not an accepted fallback.
- Set up your banking app before departure. Freezing a lost card yourself, instantly, beats waiting on an international phone line.
- Check your card expiry date. A card expiring mid-trip is a surprisingly common problem.
Shabbat, holidays, and opening hours
This is the single thing most visitors wish they had known earlier.
The Israeli working week runs roughly Sunday to Thursday. Shabbat runs from Friday evening to Saturday evening, and during it many businesses, banks, and much public transport in Jewish areas close. Friday afternoons wind down early.
For your money, that means:
- Bank branches are shut over Shabbat and typically keep short hours the rest of the week
- Cash machines keep working normally
- Many shops and restaurants close, though Arab-owned businesses, parts of Tel Aviv, Haifa, and Nazareth carry on
- Jewish religious holidays follow a similar pattern and can run longer
Plan any errand that needs a human being at a bank counter for a Sunday to Thursday morning.
Tipping and service
Tipping in restaurants and cafes with table service is customary and expected in Israel, and it is usually left in cash even when the meal is paid by card, because many terminals do not prompt for it. Ask whether service is already included before you add anything, since some places state it on the bill.
Tipping is not expected for counter service, in shops, or for most transport, though rounding up for a helpful driver or guide is normal and appreciated.
VAT and refunds for visitors
Israel operates a value added tax refund scheme for tourists on qualifying purchases taken out of the country, processed at the point of departure. Not every shop participates and not every item qualifies, so ask in store before you buy and keep the paperwork and the goods accessible for your departure. The Israel Tax Authority publishes the current rules, which are the only version worth relying on.
Staying connected so your money works
Almost every one of the habits above depends on having a working data connection: checking your banking app, declining a dodgy conversion offer, calling a taxi, or freezing a card. Landing without data is the fastest way to make a small money problem into a large one.
An eSIM sorts this before you leave the aircraft. Saily covers Israel, and because an eSIM is a digital profile you install in advance, you are online the moment the plane lands rather than queuing at an airport kiosk.
Get connected in Israel with Saily
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Before you fly
A short list to run through:
- Check the Israel entry requirements for your passport so there are no surprises at the border
- Tell your bank, or check that foreign use is enabled
- Pack two cards, from different networks, kept in different places
- Download your banking app and confirm you can log in
- Sort an eSIM so you land connected
- Note that Shabbat will close banks and many shops from Friday evening
For a broader pre-departure list that is not specific to Israel, see our travel money checklist.
Frequently asked questions
What currency is used in Israel?
The new Israeli shekel, currency code ILS, written as ₪. It is the only legal tender, and while some tourist-facing businesses will quote in other currencies, you are better off paying in shekels.
Can I use my debit card in Israel?
Generally yes. Card acceptance is high in cities and towns, contactless is widespread, and Visa and Mastercard debit cards work in most places that take cards. Check with your own bank that foreign use is enabled on your account before you travel.
Should I bring cash to Israel?
A modest amount is useful for markets, small independent stalls, rural areas, and tipping, which is often given in cash. You do not need to arrive with large sums, since cash machines are common in cities and at the airport.
Are cash machines easy to find in Israel?
In cities, at the airport, and at major transport hubs, yes. They are much sparser in the Negev desert, the Golan, and remote stretches of coastline, so withdraw what you need before heading to those areas.
Should I let the machine convert to my home currency?
No. Decline dynamic currency conversion and choose to be charged in shekels. Letting your own bank do the conversion is almost always the better result.
Is tipping expected in Israel?
In sit-down restaurants and cafes with table service, yes, and it is customary to leave it in cash. It is not expected for counter service, in shops, or for most transport. Check whether service is already included on the bill.
Do banks close on Saturday in Israel?
Yes. Banks close over Shabbat, from Friday evening to Saturday evening, and are also closed on Jewish religious holidays. The working week runs roughly Sunday to Thursday. Cash machines continue to operate throughout.
Can tourists claim a VAT refund in Israel?
Israel runs a VAT refund scheme for visitors on qualifying purchases being taken out of the country, processed on departure. Participation varies by shop and by item, so ask before purchasing and check the Israel Tax Authority for the current rules.
Will my phone work in Israel?
Israeli networks are modern and coverage in populated areas is good. Whether your own plan works abroad depends entirely on your provider, so check before you travel. An eSIM installed before departure removes the uncertainty and gets you online on arrival.
Where can I check the shekel against my own currency?
Our USD to ILS converter gives a live figure, and you can switch the currencies to match whatever you hold.