What’s the difference between the interbank rate and the rate offered by currency exchange kiosks for USD→ILS?

When sending money from USD to ILS, understanding the difference between the interbank rate and the rate offered by currency exchange kiosks is essential for maximizing your transfer value. The interbank rate—also known as the mid-market rate—is the wholesale exchange rate banks use when trading large volumes of currency among themselves. It’s the fairest, most transparent benchmark, updated in real time based on global market conditions.

Currency exchange kiosks (and many traditional remittance providers) rarely offer the interbank rate. Instead, they apply a significant markup—often 3% to 8% or more—on top of the mid-market rate. This hidden margin is how they generate revenue, but it directly reduces the shekels your recipient receives. Kiosks also frequently charge flat service fees, compounding the cost.

For remittance businesses and customers alike, transparency matters. Leading digital remittance platforms now display both the mid-market rate and their applied rate side-by-side—empowering users to compare fairly. Choosing a provider that minimizes markups and eliminates opaque fees ensures more value reaches Israeli beneficiaries, whether for family support, business payments, or tuition.

Always ask: “What’s your exchange rate vs. the live interbank rate?” A trustworthy remittance partner will answer clearly—and competitively.

 

 

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