Israeli credit cards that don’t suck

Last Updated on February 14, 2024

You may have heard that Israeli credit card rewards and perks are just not that exciting… relative to cards in many other countries, this is definitely true. Most Israeli credit cards have high fees with close to 0 benefits. That being said, there are some cards here with significant advantages over the standard card issued by your Israeli bank and it may be a good time for an upgrade. This article will summarize some of the best options out there and will be updated as new offerings come to market.

Because of the robust rewards system outside of Israel, many Olim choose to regularly use their non-Israeli credit cards after they make Aliyah (see our previous article on this). Even if you use your foreign credit card for most purchases, it can still be beneficial and convenient to have at least one Israeli credit card.

There are some expenses which can be more difficult to pay with a non-Israeli card such as taxes, Arnona (municipal tax), utility bills, and gas (petrol). Apps for transferring money peer to peer like BIT and Paybox also require an Israeli credit card. In addition, maintaining and using an Israeli credit card can be important for building you Israeli credit score.

Take note that most Israeli “credit” cards are actually more like debit cards – they automatically take whatever is owed out of your bank account on a specified date each month.

Bank card or private card?

Should I be getting a new credit card from my bank or directly from a credit card company like MAX? The truth is that almost all bank cards have monthly fees with little to no meaningful benefits. Many are able to negotiate away monthly credit card fees with an annual call to their bank – but why should you bother haggling with your bank each year?

Most non-bank cards do everything that your bank card will and more. They allow you to spend freely, withdraw cash at an ATM, and they often allow for larger monthly credit limits (מסגרת אשראי) than a regular bank card. The one catch is that you generally won’t be able to get one of these non-bank credit cards mentioned below without first having a regular bank card (for at least 6 months). Once you are eligible to get your new card you will be able to cancel your old bank card.

Cards with no monthly fees

The bottom line is that like it or not, one of the best benefits any Israeli card has to offer is no-fees. Any of the other rewards, “cash back” or other incentives tend to be attractive only in cases where you are using the card for most purchases and are adept and using the rewards system efficiently. For those looking for simple no-frills, no-fee credit cards, here are some good options:

Card	Monthly fee (דמי כרטיס)	Key Benefit	Fee for using card outside of Israel
Max I Need It1	None	No monthly fee ever	1%
Max רעות תקני לי	None	No monthly fee ever	1%
כרטיס PayBox דיגיטלי 2	None	No monthly fee ever, earn 3% on idle cash3	2.8%

1. You may be required to join this facebook group in order to apply for the I Need It card. I was able to get the card without joining the group, others I have spoken with were not. In any event, the group is free to join and you can always leave the group once you receive your card.

2. PayBox card is a digital-only card. This means that you can use it easily and quickly with Apple Pay and Google Pay but you can’t use it to withdraw cash from an ATM

3. 3% on cash only available if you are not a US citizen.

Which card is best?

When it comes to personal finance, it’s really important not to forget the personal part! While your friends might really like or hate the cards they have, it may be a completely different story for you. Use our quick and easy interactive calculator to help you decide on the best card for your circumstances:

Reward cards with a monthly fee

For everyday purchases and regular use, it can be worth looking into one of the rewards credit cards that offer more significant incentives. If you use a non-Israeli card for most purchases, skip these, they aren’t worth the effort. Don’t be fooled by the promise of “cash back” – these cards don’t really earn actual cash back but rather points that can be redeemed for gift cards or travel expenses.

Card	Monthly fee (דמי כרטיס)	Key Benefits	Fee for using card outside of Israel
CalFix BACK	No fee for first year, 15.90/month after that (Fee waived if you spend more than 5K)	Earn BUYME* cards of 0.75%-1% on most purchases	2.8%
Isracard CashBack+	No fee for first year, 15.90/month after that	Earn gift cards towards select locations of 1%-1.35% on most purchases	2.9%
Cash Cal Pro**	No fee for first year, 19.90/month after that	Earn BUYME* cards of 0.75%-1.5% on most purchases	1%
MaxBack	No fee for first year, 19.90/month after that	Earn gift cards of 0.75%-1% on most purchases	3%
SKYMAX	No fee for first year, 19.90/month after that	Earn points which can be redeemed for hotels and flights 1 point for every 160 ₪ spent	3%
FLY CARD**	19.90/month	Earn points which can be redeemed for hotels and El Al flights 1 point for every 250 ₪ spent	1.4%

* For a great article on how to make the most of your BUYME cards read – “Your step by step guide to using BuyMe“
** Cash Cal Pro & Fly Card are both Diners Club cards. Diners does not have as wide acceptance as Mastercard and Visa.

Cards for select groups

There are also many other credit cards with no monthly fees that are offered to specific groups. If you work at a large company or attend a major Israeli university, best to check and see if you are eligible for a free card.

Some of the more common examples include:

• Hitech zone – credit card offered to employees of many different high-tech companies
• University students – students or alumni of specific Israeli universities are often eligible for a fee-free card such as the UNIQ card or Hebrew U alumni card

Bottom line: Do all Israeli cards suck? Not exactly. There may not be anything great relative to what is offered in your home country, but there are some decent options to choose from. Upgrading to a better card and canceling your existing bank card can often be a great way to go.