The best US credit and debit cards to keep after Aliyah

Last Updated on May 28, 2024

This post is for general educational purposes only and should not be viewed as a recommendation of any product or service.

Making Aliyah does not mean you should cut all financial ties with the US. US based platforms will often offer better features, incentives, and customer service than Israeli ones with significantly lower fees. Keeping your US credit card after you make Aliyah make prove very beneficial, especially the ones with no foreign transaction or annual fees. Most of these cards will be more difficult to apply for and receive after Aliyah if you don’t maintain a US address.

Reasons to keep a US card

• Better rewards – US credit cards have far more robust rewards and cashback opportunities than Israeli cards.
• Travel – It is almost always a better idea to use your US credit card over your Israeli one when traveling anywhere outside of Israel.
• US Ecommerce – With giants like Amazon offering free shipping to Israel, don’t expect to do all your shopping in Israel after Aliyah.
• Maintain Credit history – By keeping your US credit card open and active you can potentially continue to maintain and improve your US credit score.
• ATM withdrawals and everyday purchases – Some Olim prefer to use their US credit and ATM cards for everyday purchases and to withdraw cash in Israel. While US Visa and Mastercards will be accepted in most places, there are some websites and utility payments that will only allow a credit card connected to a Teudat Zehut (Israeli ID number) in order to easily make payments online. In addition, using these cards regularly in Israel will significantly increase your exchange rate risk.

Debit/ATM Cards

Many Olim like to use a no foreign transaction fee ATM card to withdraw cash in Israel directly from their US accounts and avoid transfer services. It is not recommended you use these cards on weekends – between 5pm New York time on Friday and 6pm New York time on Sunday. While this is certainly a matter of personal preference, I would never recommend relying only on an ATM card for all purchases in Israel. In an increasingly cashless world many find the benefits of these cards to not be worth the hassle. The not so infrequent stories of ATMs “eating” cards posted regularly on groups like Secret Jerusalem only reinforces this point.

Schwab Bank Visa Platinum Debit Card

Schwab is by far the most popular option for Olim who wish to withdraw cash directly from their US account. It offers unlimited out-of-network ATM fee reimbursements and no foreign transaction fees. You need to have a Schwab account in order to have a Schwab debit card. You can learn more about Schwab here.

Revolut Debit Card

Revolut’s debit card allows you to withdraw the shekel equivalent of up to $1,000 a month (free plan) or $1,200 a month (premium plan) in cash at the live market rate. The card can also be used for an unlimited amount of purchases. You need to have a Revolut account to have a Revolut card. We discuss this card and platform in much more detail, here.

Revolut’s debit card stands out from everyone else’s for its ability to make purchases in shekels without using an Israeli bank account or Israeli credit card. All the other cards mentioned in the article will charge you for purchases in Israel in USD based on the exchange rate at the time the payment settles. With Revolut’s card, purchases in Israel will automatically be deducted from the shekel balance you hold on the platform. This feature allows you to purchase shekels in advance at a specific rate thereby reducing your exchange rate risk and making it easier to budget – without worrying about constant fluctuations in the exchange rate.

Cash-back Credit Cards

Cash back cards offer a simple way to earn money on every purchase you make. The cashback you earn will generally make up for any difference in exchange rate between the live market rate and the rate at which the transaction settles at.

Capital One Quicksilver

A simple no frills credit card with unlimited 1.5% cash back on all purchases, no foreign transaction fees and no annual subscription fees.

Capital One SavorOne

Up to 3% on key spending locations such as grocery stores!

Apple Card

If you have an Iphone, the Apple Card has some really great features. You get 2% daily cash back every time you use your card with Apple Pay and 3% daily cash back every time you purchase an apple product or make a purchase on the Apple App Store. While Apple Pay now works almost everywhere in Israel, if you need to use the physical card for a purchase you will still get 1% cash back. The card can also be used for extensive no-interest payment plans for most apple products. There are no foreign transaction or annual fees. This is a great card to have if you use Apple products. To apply for this card from Israel you will need both a verifiable US address and a trusted family member or friend who is currently located in the US. Application verification requires the use of a phone number that is actively connected to a US cellular network and not a virtual number.

Rewards Credit Cards

While many people are masters at maximizing credit card points for purchases and upgrades others prefer to avoid this extra layer of complexity. In many cases, points can be redeemed for statement credit and are just as good if not better than cash back rewards. Frequent travelers are most likely to benefit from points based cards.

Bank of America Travel Rewards credit card

BOA’s travel card is often highly recommended and has no annual fee in addition to no foreign transaction fees. You get 1.5 points per $1 spent on anything, and you can redeem points at a value of 1 cent apiece for credit against any travel purchase.

Cards with an annual fee

If you intend to use your card regularly or you travel frequently, a card with a low annual fee and no foreign transaction fees may be well worth it. Here are some of the top choices:

Capital One Venture Rewards Credit Card

With an annual fee of $95 you earn 2 miles on every dollar spent. Redeem miles (at 1 cent apiece) for statement credit against any travel purchase.

Chase Sapphire Preferred Card

With an annual fee of $95 you can earn 1-5X points on all purchases.

Citi Premier Card

With an annual fee of $95 you can earn 3X points on of your daily spending including grocery shopping and gas.

Amazon Prime Rewards Visa Signature

If you love to shop on Amazon and intend to keep your Prime membership after Aliyah, this card offers 5% back on all amazon purchases at no additional fee. You will also get at least 1% back on all other purchases.

If you don’t intend to keep prime membership but still plan on buying from Amazon often, an alternative option to consider is the Affinity Cash Rewards Visa® Signature

Best Payment Networks

Mastercard and Visa are considered to have the best currency conversion rates with Mastercard having a slight edge in most currencies including shekels. When you make a purchase in Israel with your US credit card, the exchange rate you get is not the live market rate at the time of purchase. Rather, it is usually based on the posted rate a day or two after the purchase. For a more robust article on the subject, read more here.

While American Express may offer some great rewards and business cards, they are not accepted for payment in many places in Israel and most of their cards that offer no foreign transaction fees do include an annual subscription fee.

Watch out for dynamic currency conversion

When asked what currency you would like to make a purchase in, always select the local currency. You should never let an ATM or local merchants payments system make the currency conversion for you – that defeats the whole purpose of using a no foreign transaction fee credit card. For more information on this, here is a great article from Wise.

For an article about Israeli credit cards, see “Israeli credit cards that don’t suck“