The basics at a glance
Currency
New Israeli Shekel (NIS / ILS, ₪). 1₪ = 100 agorot.
Notes & coins
Notes: 20, 50, 100, 200 ₪. Coins: 10 agorot, ½, 1, 2, 5, 10 ₪.
Cards
Visa/Mastercard nearly universal. Contactless tap works everywhere.
Cash needed
Shuk vendors, small Old City stalls, tips. ~200–400 ₪ handy.
Where to exchange money in Jerusalem
Skip Ben Gurion Airport — rates there are the worst in the country. In Jerusalem the best rates are at licensed independent money changers advertising "Change / No Commission".
✅ Best rates
- Old City: Jaffa Gate, Damascus Gate
- Center City: Jaffa Road, Ben Yehuda St, Zion Square
- Agrippas Street near the shuk
⚠ OK in a pinch
- Banks — but they charge commission
- Short hours (closed Fri PM & all Sat)
- ATMs — good rate, small fee
🚫 Avoid
- Ben Gurion Airport exchange counters
- Hotel front desks
- Dynamic Currency Conversion at checkout
ATMs (Kaspomat)
ATMs — kaspomat in Hebrew — are on nearly every block and accept Visa, Mastercard and most international debit cards. Withdrawing shekels directly usually beats exchanging cash.
Golden rule: when the ATM asks whether you want to be charged in shekels or your home currency, always choose shekels (ILS). "Dynamic Currency Conversion" adds a hidden 3–7% markup.
Credit cards vs. cash
Israel is nearly cashless. Visa and Mastercard work at hotels, restaurants, taxis (including Gett), supermarkets and virtually every shop. Contactless tap works everywhere. American Express is less common. Still, keep 200–400 ₪ cash on hand for:
- 🥭 Machane Yehuda Market vendors
- 🏺 Small Old City stalls and bakeries
- 💵 Tips for guides, drivers, housekeeping
- 🚌 Public buses & light rail (Rav-Kav preferred)
Tipping in Israel
| Situation | Standard tip | Notes |
|---|---|---|
| Restaurants | 12–15% | Check bill for sherut (service) already included. |
| Cafés | 10–12% | Rounding up is fine for a single coffee. |
| Taxis | Round up | Not expected; polite for good service. |
| Tour guides | $10–20 pp / day | USD or shekel equivalent both fine. |
| Housekeeping | 10–20 ₪ / night | Left on the pillow or with a note. |
Shabbat & holidays
From Friday afternoon through Saturday night, most banks, exchange offices and many shops close for Shabbat. Plan withdrawals and exchanges in advance. ATMs stay operational. Jewish holidays (Rosh Hashanah, Yom Kippur, Passover, Sukkot, Shavuot) trigger similar closures — check the Hebrew calendar before your trip.
VAT refund for tourists
Israel charges 17% VAT. Tourists spending 400 ₪ or more in a single transaction at a participating store can claim a refund at Ben Gurion Airport before departure, minus a processing fee.
- Ask the merchant for a tax-refund invoice at the point of sale (show your passport).
- Keep the goods sealed and accessible in carry-on baggage.
- Present invoice + goods + passport at the VAT refund counter at Ben Gurion — allow at least an extra hour.
- Choose credit-card refund (cleaner) or cash on the spot.
Money traps to avoid
- ⚠Airport exchange counters. Worst rates in the country. Withdraw ~100 ₪ at the airport ATM if you must, exchange the rest in the city.
- ⚠Paying in USD or EUR. Hotels and tour operators accept them but at bad conversion. Always pay in shekels when possible.
- ⚠Dynamic Currency Conversion. If a card terminal or ATM asks "your currency or ours?" — always pick shekels (ILS).
- ⚠Shuk overcharges. At the Machane Yehuda Market, ask the price BEFORE any spice, tea or halva is weighed or bagged — see our shuk guide for details.
- ⚠Frozen card. Notify your bank of travel dates before you fly — an unexpected Israel charge can trigger a fraud freeze.