Israel uses the New Israeli Shekel, abbreviated ILS or NIS, represented by the symbol ₪. The shekel replaced the old shekel in 1985 at a rate of 1000 to 1 following hyperinflation that reached 445 percent in 1984. The Bank of Israel, established in 1954 under the Bank of Israel Law, serves as the central bank and issues currency in denominations of 20, 50, 100, and 200 shekel notes, with coins in values of 10 agorot and 0.5, 1, 2, 5, and 10 shekels. One shekel equals 100 agorot. Exchange rates fluctuate but have ranged between 3.1 and 3.9 shekels per US dollar over the past five years, settling around 3.6 to 3.8 as of 2024.
ATMs designated as kaspomat operate throughout Israel and accept international cards bearing Visa, Mastercard, Maestro, and Cirrus logos. Machines dispense shekels only, with withdrawal limits typically set at 2000 to 2500 shekels per transaction. Banks charge foreign transaction fees ranging from 2 to 4 shekels plus a percentage, usually around 1.5 percent. Major bank chains include Bank Hapoalim, Bank Leumi, Israel Discount Bank, and Mizrahi Tefahot Bank. ATMs in Tel Aviv-Yafo, Jerusalem, and Haifa remain accessible 24 hours. Smaller cities like Beersheba and Eilat have machines concentrated near central bus stations and commercial districts. In Eilat specifically, many ATMs offer both shekels and US dollars due to the city's tax-free zone status and tourist orientation.
Credit cards function as primary payment instruments in Israel, with Visa and Mastercard accepted at approximately 95 percent of merchants in urban areas. American Express acceptance drops to roughly 40 percent, and Diners Club lower still. Chip-and-PIN technology became mandatory for Israeli-issued cards in 2013, though magnetic stripe and contactless payments still process. Many small vendors in Jerusalem's Mahane Yehuda Market, Tel Aviv's Carmel Market, and Akko's Old City souk prefer cash for purchases under 50 shekels to avoid processing fees. Currency exchange services operate at Ben Gurion Airport near Tel Aviv, Ramon Airport near Eilat, and border crossings, though rates typically offer 3 to 5 percent less favorable conversion than ATM withdrawals.
Israeli banks generally operate Sunday through Thursday from 0830 to 1300, with some branches extending hours to 1630 on Sunday and Tuesday. Banks close Friday and Saturday. Post offices designated as Bank Postal provide basic banking services in smaller towns and settlements where full bank branches do not exist, operating similar hours with extended service until 1800 on Sunday and Wednesday in major cities. Foreign visitors cannot open standard Israeli bank accounts without proof of residency, though some banks offer tourist accounts requiring minimum deposits of 5000 to 10000 shekels and charging monthly maintenance fees of 15 to 30 shekels.
Digital payment platforms in Israel include Bit, a mobile payment system developed by Israeli banks and launched in 2015, which allows instant transfers between Israeli bank accounts using phone numbers. Approximately 6.8 million Israelis hold active Bit accounts as of 2024. Paybox and Pepper Pay offer point-of-sale solutions for merchants. International services like PayPal, Venmo, and Cash App do not support shekel transactions directly, requiring currency conversion through linked bank accounts or cards. Google Pay and Apple Pay launched in Israel in 2019 and 2023 respectively, with adoption concentrated in Tel Aviv-Yafo, where contactless payment terminals exist at roughly 75 percent of retail locations.
Israeli service culture expects tips calculated as percentages of pretax bills. Restaurants typically include service charges of 10 to 15 percent automatically on bills, printed as dmei sherut in Hebrew. When service charges appear itemized, additional tipping remains optional. When bills arrive without service charges, customers usually add 10 to 15 percent in cash or by adjusting the credit card total. High-end establishments in Tel Aviv-Yafo neighborhoods like Neve Tzedek and Florentin expect 15 to 20 percent. Fast-casual restaurants including hummus shops, falafel stands, and burekas bakeries do not expect tips, though customers sometimes leave small change.
Hotel housekeeping staff receive 10 to 20 shekels per night, left daily rather than accumulated at checkout because staff rotate. Bellhops and porters expect 10 to 15 shekels per bag. Concierge services depend on complexity, from 20 shekels for basic restaurant reservations to 100 shekels for securing difficult bookings or tours. Taxi drivers do not expect tips for standard service, though passengers commonly round fares up to the nearest 5 or 10 shekels. Sherut shared taxi minivans operating on fixed routes between cities like Tel Aviv-Yafo and Jerusalem charge exact fares with no tipping custom.
Tour guides working private full-day tours expect 100 to 150 shekels per person in groups, or 200 to 300 shekels for individual travelers. Group tours through companies like Abraham Tours or Bein Harim suggest 50 to 80 shekels per person for full-day excursions. Spa services at facilities in Ein Gedi, Eilat's resort district, or Tel Aviv-Yafo typically add 15 to 18 percent service charges to bills. Hair salons and barbershops expect 10 to 15 percent tips paid separately from the service fee.
Israel operates three primary mobile network providers: Pelephone established in 1986, Cellcom founded in 1994, and Partner Communications trading as Orange Israel since 2016. All three operate on GSM 900/1800 MHz and UMTS 2100 MHz frequencies with LTE coverage across most populated areas. According to the Ministry of Communications, 4G LTE networks cover 97 percent of the population as of 2023, though coverage drops significantly in the Negev Desert south of Beersheba and in unpopulated areas of the Judean Desert. 5G networks launched in 2020, with availability concentrated in Tel Aviv-Yafo, Jerusalem, Haifa, and Beersheba covering approximately 35 percent of the population.
Prepaid SIM cards require passport presentation at purchase due to registration requirements implemented in 2018 under terrorism prevention regulations. Tourist SIM packages from all three carriers cost between 50 and 100 shekels for 30 days, including 10 to 20 gigabytes of data and 100 to 300 minutes of local calls. Pelephone sells tourist SIMs at Ben Gurion Airport Terminal 3 arrivals hall, Ramon Airport, and stores in major cities. Golan Telecom and Hot Mobile operate as mobile virtual network operators using Partner and Pelephone infrastructure, offering plans 10 to 20 percent cheaper than primary carriers but with limited physical store presence.
International roaming charges vary by home carrier, with European Union visitors benefiting from roaming agreements since Israel joined the European roaming zone in 2023 for some providers. American carriers typically charge 5 to 10 dollars per day for international roaming in Israel. Data speeds on Israeli networks reach 40 to 80 Mbps on LTE in urban areas, dropping to 5 to 15 Mbps in rural regions. Coverage along Highway 90 through the Jordan Rift Valley and Highway 40 through the Arava Valley remains inconsistent, with dead zones extending 10 to 20 kilometers in unpopulated sections.
SIM card activation requires entering passport details and Israeli address, which can be a hotel. Activation completes within 2 to 24 hours. Top-up cards for additional credit sell at supermarkets, kiosks, and newsstands in increments of 30, 50, 100, and 200 shekels. Most carriers allow online top-up through apps, though these require Israeli credit cards or PayPal accounts with shekel balances. eSIM technology became available through Pelephone and Partner in 2022, with QR code activation possible at purchase points and through email delivery for advance purchase.