The Capital One problem in Israel

Capital One is currently migrating its U.S. debit cards from the Mastercard network to the Discover/Pulse network.

While Mastercard is universal, the Discover/Pulse network has very limited infrastructure in Israel. Many Israeli ATMs do not recognize the software, and will reject your attempt to withdraw funds.

Bank Hapoalim, which offers no-fee withdrawals, will not accept the new Capital One debit cards. They will still work on Discount/Mercantile and Leumi Banks, although there will be an ATM fee on the Israeli side.

Tip: Add your Capital One card to Apple Pay/Google Pay. Even if your physical Discover card fails at an ATM, the digital version usually works for general purchases.

Capital One now explicitly recommends that international travelers carry a backup card from a different network (Visa or Mastercard).

Here are some other good banking options:

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Easy Online Banking

Charles Schwab (Bank Investor Checking)

Widely considered the "gold standard" for international travel.

Pros:

• $0 Monthly fees
• No minimum balance. 
• They refund 100% of ATM fees worldwide at the end of each month.

Cons: 

• Requires opening a linked brokerage account (though you don't have to fund it or use it).
• You need a mobile app to set up and send zelle payments
• Money transfers take 1-2 days to show up in your account

Note: you can link an existing bank account for easy transfers so you don’t need to use zelle or wire transfers when transferring from your owned accounts

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Local US Banks

• NorthEast Community Bank (NECB): Based in NY; uses the Visa network. You will need to set it up in a local branch in the US.
• Robinhood Cash Card: Uses the Mastercard network (high acceptance). While it has 0% foreign transaction fees on swipes, it does not reimburse ATM fees.

Premium High-Balance Accounts

If you already maintain high balances at a major bank, you may already have access to "white-glove" travel perks.

• Chase Sapphire Checking: Requires a $75,000 balance. Offers unlimited global ATM fee reimbursements and free international wire transfers.
• Citi Priority: Requires a $30,000 balance. While it waives Citi's own fees, it does not reimburse local Israeli ATM surcharges (this requires the $200k+ "Citigold" tier).

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