Cash vs Plastic in Israel
 

Is plastic pretty universally accepted in Israel? For example, can I pay for the shuttle from TLV to Jerusalem with a credit card, or will I need shekels right off the bat?

Yes to the first question, no to the second.

I virtually never pay with cash. I keep some on me just in case, but I almost always use credit card. However, unless you use Gett, you will need cash to pay for any taxi or shared taxi, including shuttle to Jerusalem. For public transportation, unless you have an Android and speak Hebrew (to fill up a Rav-Kav on your own), you will almost always need cash to fill up with the driver (there are limited exceptions here).

Other than that, basically all restaurants and bars, stores of any size, etc., will take credit card. (Some have a minimum of NIS 20.)

To get cash, unless you bring with you, take out from the ATM in the airport. DON'T use the money changer in the airport as they charge a fortune. The ATM doesn't charge a fee (believe there are only bank ATMs).

As joshwex90 wrote, you will need cash for most public transportation. I recommend gett if you plan to use taxis. As for restaurants/bars/cafes, credit cards are widely accepted, but you're expected to tip (10-15%) with cash. Some "simpler" providers (falafel, hummus, etc.) are cash only.

ATMs attached to banks (including the ones at the airport) are typically fee-free. Some stores have ATMs that charge steep fees. It should be very clearly noted.

Shuly

I beg to differ re:tipping. I can't remember the last time I tipped with cash. True that in America it's second nature to tip on card and in Israel, I always ask, but I can't remember the last time I was denied the ability to tip on my card.

I think I've been to TLV 3/4 times every year in the last 4 years, and I still carry the same cash I got on the first time and rarely/never actually use it.
If you want to exchange money, you are better off doing it in the city, a good rate would be one where there is 10 agorot between "Buy" and "Sell" (e.g. 3.47/3.57 for USD), a "bad" one will be 20, anything more than that and they rip you off

I do rent a car, so I don't go around in taxis/public transport, and other than that I can't recall needing cash for anything.

Note about car rental - gas is 19 agurot/liter more for full service than self-service at most stations. The problem with self-service is that it can cause issues with a foreign card, not to mention the screen is in Hebrew. You can sometimes do self-service and then ask for help. You'll need to punch in your passport number and the car number.

Foreign cards are generally capped at NIS 200 when you fill up.

Indeed, I think most "Paz" stations do not accept a foreign CC, and others cap you at 200 but you can just use the same card again... I usually try to find the small gas stations that are cheaper and often have the same price for full service

For foreigners, the "off-brand" are always better. They generally charge the same price, reduced from the "brand names," and less likely to have a limit.

Sadash is always cheapest, but their aren't too many of them!

Its been awhile since I was able to use a non-Israeli CC at any pump.

I usually try and load up at a Paz that has a Yellow store (similiar to a 7-11 sort of) go inside and ask that they hold my CC and swipe it afterwards, that way Im not limited to 200 skek. Sonol is hit or miss and the otherw eek up North when I went to pay it wouldnt take it afterwards since it was more then 200 shek, seems Sonols reg are hard coded to accept only 200 shek and if its more then 0. Had to walk over to a restaurant to cash some USD, but he did offer from get go to let me get 200 shek

I found Delek and any brand where its only pay at the pump not to accept foreign CCs whatsoever

Bear in mind if a person needs more then 200 shek then its best to use a different CC for the 2nd load to prevent the 1st CC used from being denied and then having to call up the States to get it unblocked. So for the 1st fill use the CC that maxs out gas as a purchase

Thanks for all the tips. I don't think I'll be renting a car, but if I do, forewarned is forearmed.

I have to get from TLV (arriving 4:15pm) to my Jerusalem hotel near the bus station. The person I spoke with at the hotel told me to take "the shuttle" from the airport. It looks like many different shuttles are possible. Any advice on how to pick a good one will be appreciated.

I guess one more thing to bear in mind is that fuel price hover around 6NIS per litre, so unless you need to fuel over 30 litres, you won't have issues with the 200NIS limit, I usually try to fuel around when I have less than half a tank, which normally ends up being 20-25 litre...

Have had no issues with Delek and foreign credit card. Used foreign credit card at self-service Delek in many areas.

There's Nesher, which is a sherut (shared taxi), and there's a bus.

Nesher is 64 shek (including luggage) and takes 10 people. They go as they fill up. It's similar to a taxi in that it'll take you directly to where you're going (though bear in mind that friends landed the same day as Trump and Nesher let them off 3 blocks away with luggage and strollers!). The only major difference from a private taxi is that, being shared, you may be the last stop. It's not a bus, so no specific route that it follows - it just depends on where everyone is. So you could do an hour from the airport to Jerusalem and another hour in Jerusalem!

Afikim runs a bus, the 485, which costs 16 shekel. The issue here is if you have luggage, I wouldn't recommend this as likely you're not staying on the bus route, meaning you'd anyways need to switch in Jerusalem, and that's either figuring out more public transportation or a taxi which would make the price come out similar.

Best to take Nesher.

They most probably meant the Nesher shared taxi. The concept is popular in Eastern Europe, Turkey and Asia: it's a van that has a more or less fixed route, and leaves when it fills up. 16:15 is a busy time with arrivals, so you shouldn't wait to much for the van to fill up. And as the main bus station is right at the entrance to Jerusalem (coming from the airport), you are likely to be among the first ones to be dropped off.

Shuly

Israel post (the post office) is a safe easy way to change money, baseline spread is about 12 agorot. https://www.israelpost.co.il/postcurrency.nsf/WebDisplayNOHE/$First?OpenDocument&L=EN

Good forex offices (in cities but not on the beaten tourist track) can give you close to a 1-1/5% spread (4-6 agorot), if you exchange a fair sum (say over $1000).

Actually I'm near the bus terminal just inside the Damascus gate. I guess this is where I'd get buses to the West Bank if I were heading that way. I imagine this could make me one of the last to be dropped off. Any ideas how long a sherut will take from TLV? Would I be better off switching to some other mode of transport at the main bus station?