On 25 July 2013 I obtained New Israeli Shekels from a small booth near the Jaffa gate on the east corner of Latin Patriarch Street via his electronic card facility. I asked for 2,000, which I received. It was only when I got back to my hotel I realised I had no receipt slip. I may have dropped it, I may not have received one and I did not realise it at the time. On return to the UK I saw the transaction on my bank statement as 'MARAKA, JERUSALEM PS'. I had been charged 658.36USD, which at the then exchange rate was about 2331NIS. Somewhere along the line I was cheated. I don't know if the same person always mans the booth but I would suggest giving it a miss.
Exact same thing happened to me on 1st August. In fact I did receive a receipt, however this mentioned the USD equivalent of the NIS amount which I received. In a hurry, I did not bother to do the math - when I did later, I realized that the guy's fee must have been some 40 euro. After many Jerusalem visits and many stories about the Jaffa Gate maffia, I should have know better...
of course,you will not say that you are jewish when you have a walk in the arab part of the city,and you will not wear a kipa;always try to show that you are an innocent tourist