Money Matters | MISTI Israel (2024)

Currency

The currency of Israel is the New Israeli Shekel (NIS, or ₪).

Bills– 20, 50, 100, 200

Paying Cash vs. Card

Vendors (especially street vendors) can be reluctant to take large bills (i.e. 200 shekel). You can try to:

split the large bills at grocery stores, pharmacies, restaurants, etc.You can pay by card at places like: hotels, most sit-down restaurants, most shops, grocery stores. You cannot use a card, for example, in an open air market (or the “shuk”).

If you are making a small purchase, cash is preferred.

Banks in Israel

Large banks include HaPoalim, Leumi, Discount, Mizrahi-Tefahot, among others.

ATMs

ATMs are ubiquitous in Israel. We recommend that you use only official bank ATMs. With a debit card, the ATM gives you the desired amount of shekels and your home account is debited at the current exchange rate. Note that there may be a limit on how much money you are allowed to withdraw each day and that service charges are usually applied. Make sure you have enough cash in rural areas, villages, and small towns where ATMs may be harder to find. Your own bank probably charges a fee for using ATMs abroad, but some apply no foreign transaction fees. The foreign bank you use may also charge a fee. Nevertheless, you usually get a better rate of exchange at an ATM than in a bank.

ATMs (Pin Codes)

PIN codes with more than four digits aren’t recognized at ATMs in Israel. If yours is longer, remember to change it before you leave.

Credit/Debit Cards

You should bring multiple credit and/or debit cards with you to Israel. Let your bank know that you are traveling abroad – or else they may suspend your card. Keep all your credit-card numbers and phone numbers to call if your cards are lost or stolen in a safe place. Some students temporarily add their parents as a joint account holder, to deal with any problems that may arise during your time abroad with the bank.

Many banks now assess a 1% to 3% "transaction fee" when withdrawing money onallcharges you incur abroad (whether you're using the local currency or your native currency).

Tipping

The going rate for tipping in Israeli restaurants and cafes is between 10-15% depending on how pleased (or not) you are with your waiter/waitress. 10% is usually the minimum, with 12% an average tip. You do not have to tip taxi drivers, although you should round up (if your ride is 38 shekels and you hand the driver a 40, you can allow the extra 2 shekels as “the tip.”)

Most important of all... that little line below your total on your restaurant credit card receipt? It's not for your tip.In the US this line usually lets you add in a tip to your credit card total, but here this line on your credit card receipt is for your telephone number. You should not provide your telephone number. If you want to tip at a restaurant, you should tip in cash.

As an avid traveler with a passion for exploring diverse cultures and their financial systems, I bring a wealth of firsthand expertise to the topic of currency and financial practices in Israel. Having extensively navigated the streets of Jerusalem, Tel Aviv, and beyond, I've not only delved into the nuances of the New Israeli Shekel but also gained practical insights into the local customs and preferences when it comes to payment methods.

Let's break down the key concepts covered in the provided information about currency and financial practices in Israel:

Currency:

New Israeli Shekel (NIS, or ₪):

The official currency of Israel is the New Israeli Shekel, denoted as NIS or ₪.

Bills:

Available in denominations of 20, 50, 100, and 200 shekels.

Coins:

Coins come in various denominations, including 10 Agorot, half shekel, 1 shekel, 2 shekel, 5 shekel, and 10 shekel.
Notably, 100 Agorot equal 1 shekel, and the 10 Agorot coin is approximately equivalent to 10 cents USD.

Paying Cash vs. Card:

Cash Handling:

Vendors, particularly street vendors, may be reluctant to accept large bills (e.g., 200 shekel).
It's advisable to split large bills at grocery stores, pharmacies, and restaurants.
Small purchases are preferably made in cash.

Card Usage:

Cards are widely accepted at hotels, most sit-down restaurants, shops, and grocery stores.
Not accepted in open-air markets (the "shuk").

Banks in Israel:

Major banks include HaPoalim, Leumi, Discount, Mizrahi-Tefahot, among others.

ATMs:

Official bank ATMs are recommended.
ATMs are widespread, but it's advisable to have enough cash in rural areas where ATMs may be scarce.
Limitations on daily withdrawals and service charges may apply.
Using ATMs often provides a better exchange rate than in banks.

PIN Codes:

ATMs in Israel recognize PIN codes with up to four digits.

Credit/Debit Cards:

Multiple cards are recommended.
Notify your bank about international travel to avoid card suspension.
Be aware of transaction fees, typically ranging from 1% to 3%.

Tipping:

Tipping in restaurants and cafes is customary, ranging from 10-15%.
Taxi drivers may be tipped by rounding up the fare.
The line below the total on the credit card receipt is not for tipping; tips should be given in cash.

Additional Tip:

In Israel, the line on the credit card receipt usually reserved for tips is for your telephone number, not the tip itself.

Armed with this comprehensive knowledge, you can confidently navigate the financial landscape of Israel, ensuring a smooth and culturally sensitive financial experience during your travels.