Managing Cash and Card Spend When Doing Business in Israel

Israel's economy is a dynamic mix of high-tech hubs and traditional markets. As a business expanding into this market, you'll find that while credit and debit cards are widely accepted in established restaurants, hotels, and corporate venues, many essential transactions still require cash. The bustling street markets, local suppliers, and countless small vendors operate on a cash basis. For any company with team members traveling to Israel or managing local supplier relationships, having a smooth strategy for accessing both cash and card payments is critical.

ATMs are readily available throughout Israel's urban centers. You can locate them in airports, major train and bus stations, shopping centers, and outside bank branches. However, if your business activities take you to rural areas, cash access becomes sparser. Planning ahead by withdrawing sufficient funds in the city will keep your operations running without interruption.

Most international corporate cards from the US, UK, Australia, and other major markets function at Israeli ATMs and point-of-sale terminals. Look for network logos like Visa, Plus, Mastercard, Cirrus, or Maestro on the ATM to confirm compatibility. Israeli ATMs generally accept 5- and 6-digit PINs, but longer PINs may cause issues. Chip cards are the norm locally, though non-chip cards are still accepted in many places. Before travel, notify your card issuer to prevent blocks for suspected fraud and inquire about any daily withdrawal limits that could hinder larger business expenses.

When withdrawing cash or paying by card, you might encounter an offer to be charged in your home currency instead of the local New Israeli Shekel (NIS). This is a dynamic currency conversion (DCC) practice that often applies a marked-up exchange rate, benefiting the ATM operator or merchant at your expense. Always choose to be charged in the local currency to allow your card network or financial provider to handle the conversion, typically resulting in a more favorable rate.

Beyond the ATM: The Real Costs of International Spending

ATM fees are just one piece of the puzzle. Your home bank may tack on foreign transaction fees and out-of-network withdrawal charges. The local Israeli bank operating the ATM will also likely impose a usage fee. For a business with frequent travel or recurring payments to Israeli partners, these costs add up fast. Reducing the number of cash withdrawals by taking out larger sums, when safe to do so, can minimize per-transaction charges. Additionally, avoiding ATMs in high-tourist zones like airports and hotels can lead to lower operator fees.

Rather than relying solely on physical cards and cash, modern global businesses can benefit from a dedicated multi-currency business account built for international operations. With such a solution, you can hold, convert, and spend in NIS and other currencies at competitive exchange rates, avoiding excessive markups. A key feature is the ability to issue virtual cards for your team. These virtual cards provide precise spend controls — you can set limits, freeze cards instantly, and track every transaction in real time. This is especially useful for managing travel expenses, paying for SaaS subscriptions, or handling ad spend with Israeli vendors.

1. Combine cash and card strategies: Use virtual cards for all possible business purchases to maintain control and visibility, while keeping a reasonable amount of cash on hand for markets and small vendors. 2. Leverage spend controls: Set per-transaction or monthly limits on virtual cards issued to traveling employees or for specific supplier payments. 3. Reduce conversion fees: Use a business account that offers mid-market or near mid-market exchange rates when converting funds to NIS. 4. Consolidate payouts: Instead of multiple small wire transfers, batch payments to Israeli suppliers or freelancers through a single platform to reduce costs and administrative work. 5. Monitor everything centrally: A unified dashboard for all business spend, both card and bank transfer, gives finance teams real-time oversight across global operations.

By adopting these modern payment tools, your business can operate in Israel with the same ease and control as at home, while significantly cutting the hidden costs of international spending.