What is the best credit card to use in Israel?

Any Visa or Mastercard with no foreign transaction fee - the Capital One Venture X and Chase Sapphire cards are the reliable picks. Amex is accepted far less widely in Israel, so carry it for the flights and lounges but not as your only card on the ground.

Is American Express accepted in Israel?

Less widely than in the US. Hotels, chain stores, and larger restaurants often take it; smaller shops, the shuk, and many taxis do not. Visa and Mastercard work nearly everywhere, and contactless payment is the norm across Israel.

Should I pay in shekels or dollars when a terminal asks in Israel?

Always shekels. When a card terminal or ATM offers to charge you in dollars, it is applying dynamic currency conversion - a hidden markup that can add 3-7% to the charge. Choose ILS every time and let your no-FTF card do the conversion at the fair rate.

How do I get cash shekels in Israel without bad fees?

Use a bank ATM (Bank Hapoalim, Bank Leumi) with a debit card that reimburses ATM fees, and skip airport exchange counters and hotel desks - their spreads are the worst in the country. Keep some cash for the shuk, taxis, and small shops that still prefer it.

Spending in Shekels: The Right Card for Israel (and the Traps to Skip)

The flight is the glamorous part. Then you land, and suddenly the question is which piece of plastic comes out at the makolet. Get this right and Israel costs exactly what it costs. Get it wrong and you donate 3-7% of the trip to a currency trick.

The short answer

Bring a no-foreign-transaction-fee Visa or Mastercard as your daily card (Venture X or a Sapphire), carry an Amex only as a backup, always choose to be charged in shekels, and pull cash from a bank ATM - never the airport exchange counter.

The one rule that saves real money: always shekels

Card terminals and ATMs across Israel will offer to charge you in dollars. It looks helpful. It is a trap called dynamic currency conversion: the merchant’s bank sets its own exchange rate, quietly adding 3-7% on top of your purchase. On a $2,000 trip, that is $60-140 for absolutely nothing.

The rule: whenever a terminal, ATM, or cashier asks “shekels or dollars?” - answer shekels, every single time. Your no-FTF card converts at the fair network rate. Same rule at the ATM: if it offers to “lock in” a dollar amount, decline and let it dispense shekels.

Which card networks actually work in Israel

Visa and Mastercard: accepted essentially everywhere - hotels, restaurants, grocery chains, malls, apps. Contactless and Apple Pay/Google Pay are the default way Israelis pay; your phone is a valid wallet.
American Express: the weak link. Larger hotels and chains often take it; smaller restaurants, the shuk, many taxis, and plenty of mom-and-pop shops do not. Use your Amex to earn the trip (4x groceries at home, lounge at JFK), then let a Visa or Mastercard do the work on the ground.
Foreign transaction fees: any card on this page charges zero. A card with a 3% FTF silently taxes every falafel - check yours before you fly.

Cash: how much and from where

Israel is close to cashless, but not all the way. Keep a few hundred shekels for the shuk, small taxis, tipping, and the occasional shop that only takes cash.

Do: withdraw from a real bank ATM (Bank Hapoalim, Bank Leumi) using a debit card that refunds ATM fees - Charles Schwab’s checking debit card is the classic travel pick, reimbursing ATM fees worldwide with no foreign transaction fee.
Do not: exchange at Ben Gurion counters or hotel desks. Their spreads are the worst you will find in the country.
VAT note for hotels: tourists presenting a foreign passport and valid entry status at check-in are generally exempt from Israeli VAT on hotel stays - if your folio shows VAT, ask the desk to re-check the tourist exemption before you pay.

Earning while you are there

Dining and grocery codes work abroad too: the Amex Gold’s 4x on restaurants applies worldwide (where Amex is accepted - see above), and the Sapphire cards earn 3x on dining. Transit and taxi apps (Gett is the local standard) code as travel on most cards. Next trip’s ticket starts with this trip’s shawarma.

For the cards that get you to Israel in the first place, see the full rankings. And if you are weighing ecosystems, Amex vs Chase for Israel has the honest answer.

Ranked: the best cards for spending in Israel

Capital One Venture X - Visa, zero FTF, 2x on every shekel, lounge access at home. The daily driver in Israel. Apply now
Chase Sapphire Preferred - Visa, zero FTF, 3x on dining worldwide. Apply now
Amex Gold - 4x on dining where accepted; hold it as the earner, not the only card. Apply now

Card acceptance and DCC guidance verified September 2026 against current Israel travel-money guides (JRM Hotels, ATM Fee Saver, TravelWithHello). VAT tourist-exemption rules per Israeli tax authority practice - confirm at check-in.