Bank of America converts currency at its own exchange rate, not the mid-market rate

Yes, Bank of America converts currency. When you send money internationally, receive a wire transfer in a foreign currency, or use a debit card abroad, the bank converts between currencies using its own rate. That rate is not the mid-market rate you see on financial news sites—it includes a markup that Bank of America keeps. The markup varies by transaction type and the currency pair involved, but it is always wider than the rate a currency trader would pay.

The bank does not publish its conversion rates in advance. You can see the rate only after you initiate the transaction or request a quote. For international wire transfers, you can ask for a rate quote before you commit, and the bank will hold it for a set period—usually one business day. For card transactions abroad, the rate is applied when the transaction posts to your account, which may be one to three days after you swipe.

If you are moving a large sum or sending money regularly, the markup matters. A 2 to 3 percent difference on a $10,000 transfer means $200 to $300 out of your pocket. Smaller transfers feel the same percentage hit but in smaller dollars.

Key Takeaways

  • Bank of America applies its own exchange rate to all currency conversions, which includes a markup above the mid-market rate.
  • You can request a rate quote for international wire transfers before you send, and the bank will hold it for one business day.
  • For debit card transactions abroad, the conversion rate is applied when the transaction posts, not when you swipe.
  • The bank's markup on currency conversion is not disclosed upfront and varies by currency pair and transaction type.
  • International wire transfers through Bank of America typically take one to three business days and include a wire fee separate from the conversion markup.

How to see the conversion rate before you send money

For an international wire transfer, call Bank of America or visit a branch and ask for a rate quote. The representative will tell you the exact rate the bank will use, how much you will receive in the destination currency, and any fees. The bank typically holds this quote for one business day, so you have time to decide without the rate changing on you.

Write down the quote—the rate, the amount in the receiving currency, and the date it expires. If you do not send within that window, you will need to request a new quote. Rates move constantly, so a quote from yesterday is not valid today.

For credit card or debit card transactions made abroad, you cannot see the rate in advance. The conversion happens when the transaction posts to your account, which is usually one to three business days after you make the purchase. By then, the rate may have shifted. You can check your statement after the transaction posts to see what rate was applied.

Wire transfers versus other ways to send money internationally

Bank of America offers several ways to move money across borders, and each has a different cost structure. An international wire transfer goes directly from your Bank of America account to a bank account abroad. The bank charges a wire fee (typically $15 to $45 depending on whether the receiving bank is in the US or abroad) plus the conversion markup. The transfer usually takes one to three business days.

Bank of America also offers international money transfer services through partnerships with companies like MoneyGram and Western Union. These services often have higher fees and wider markups than a direct wire, but they can be faster or reach destinations where Bank of America does not have correspondent banking relationships.

If you have a Bank of America account in another country, you can transfer between your own accounts with a lower fee and sometimes a better rate. Ask your branch whether this option is available for the countries you use.

What happens when you use your debit card abroad

When you swipe a Bank of America debit card at a merchant or ATM outside the United States, the transaction is converted to dollars using the bank's exchange rate. You do not pay a separate conversion fee, but the rate itself includes the bank's markup. The merchant or ATM operator may also ask whether you want to be charged in dollars or the local currency—always choose the local currency, because the merchant's conversion rate is almost always worse than the bank's.

ATM withdrawals abroad may carry a separate ATM fee ($3 to $5 is common) in addition to the conversion markup. Some Bank of America accounts waive this fee; check your account terms or ask your branch.

The conversion is not applied immediately. The transaction posts to your account one to three business days later, and that is when the rate is locked in. If the exchange rate moved between the day you swiped and the day the transaction posted, you get the rate on the posting date, not the transaction date.

Incoming wire transfers in foreign currency

If someone sends you money from abroad in a currency other than dollars, Bank of America will convert it to dollars before depositing it into your account. Again, the bank uses its own rate, not the mid-market rate. You will see the dollar amount in your account, and the conversion rate applied will be shown on your wire receipt.

The sender's bank may also have applied a conversion if they sent from a currency other than the one the receiving bank uses. That means the money may have been converted twice—once by the sending bank and once by Bank of America—so the total markup can be steep. If you are receiving regular international payments, ask the sender to send in dollars if possible, or to use a bank that has a direct corridor to Bank of America in the destination currency.

Comparing Bank of America's rates to other options

Bank of America's conversion rates are typically 2 to 3 percent wider than the mid-market rate, though this varies by currency pair and market conditions. Some currencies have tighter spreads than others. The British pound and euro usually have narrower markups than emerging-market currencies.

If you are sending a large amount or sending regularly, it is worth comparing Bank of America's rate to other providers. Online transfer services like Wise (formerly TransferWise), OFX, and Remitly often have narrower markups, especially for common currency pairs. They may also be faster and cheaper for certain routes. For very large transfers, a currency broker may offer better rates than any bank.

For small, occasional transfers, the difference may not justify switching providers. For amounts over $5,000 or regular monthly transfers, the savings can add up quickly.

Frequently Asked Questions

Can I lock in an exchange rate before I send an international wire?

Yes. Call Bank of America or visit a branch and request a rate quote for the amount and currency pair you need. The bank will hold the quote for one business day. Write down the quote details and expiration date. If you do not send within that window, you will need to request a new quote, as rates change daily.

Why is the rate I see on my statement different from the rate I was quoted?

If you received a quote but did not send within the holding period, the rate will have changed. If you sent within the window, the rate should match your quote. If it does not, contact Bank of America and ask for an explanation. Rates can shift slightly due to rounding, but a large difference should be reviewed.

Does Bank of America charge a fee for currency conversion?

Bank of America does not charge a separate conversion fee, but the exchange rate it uses includes a markup above the mid-market rate. That markup is how the bank profits from currency conversion. For wire transfers, you also pay a separate wire fee ($15 to $45) on top of the conversion markup.

What should I do if I am charged in dollars at a foreign ATM or store?

Always decline and choose to be charged in the local currency instead. When you accept a charge in dollars, the merchant or ATM operator applies their own conversion rate, which is almost always worse than Bank of America's rate. Let your bank do the conversion instead.

How long does an international wire transfer take?

Bank of America international wire transfers typically take one to three business days, depending on the destination country and whether the receiving bank is a Bank of America correspondent. Some countries and banks take longer. Ask for an expected delivery date when you send the wire.