Most banks exchange foreign currency, but not all branches do it, and the rates are usually worse than other options
Yes, most banks will exchange foreign currency for you — but the transaction comes with real costs and limits. Large national banks like Bank of America, Chase, and Wells Fargo offer currency exchange at many locations, though you may need to visit a branch that handles international services. Smaller regional banks and credit unions may not offer it at all, or only for customers who hold accounts there. The exchange rate a bank gives you is almost always lower than the mid-market rate (the rate you see quoted on financial news sites), which means you lose money on the conversion itself.
The gap between what a bank charges and what you actually get can range from 2 to 8 percent, depending on the bank and the currency. Some banks charge a flat fee on top of the unfavorable rate. If you are exchanging a large amount, that difference adds up fast. For smaller amounts or occasional travel, a bank may still be your most convenient option — but it is worth knowing what alternatives exist and how much each one costs.
Key Takeaways
- Banks exchange foreign currency at most large branches, but the rate they offer is typically 2 to 8 percent worse than the mid-market rate.
- You may need to order currency in advance, especially for less common currencies, and some banks charge a separate fee for the exchange.
- ATMs in the country you are visiting usually offer better rates than banks in your home country, though your own bank may charge a withdrawal fee.
- Online currency exchange services and airport kiosks are alternatives, but airport rates are almost always the worst option available.
- Credit unions sometimes offer better rates than banks if you are a member, and some specialize in international transfers for specific countries.
How bank currency exchange works and what it costs
When you walk into a bank and ask to exchange dollars for euros (or any other currency), the teller looks up the current exchange rate, applies the bank's markup, and gives you the converted amount in cash or a traveler's check. The markup is how the bank makes money on the transaction. A bank might buy euros at the mid-market rate of 1.10 dollars per euro, then sell them to you at 1.18 dollars per euro — pocketing the difference.
Some banks also charge a flat fee: $5, $10, or more per transaction, on top of the unfavorable rate. If you are exchanging $500, a $10 fee plus a 5 percent rate markup means you lose roughly $35 to $40 total. For a $2,000 exchange, that loss grows to $150 or more. The exact cost depends on the bank, the currency, and the amount. Call your bank's international services line or visit a branch to ask what they charge for the specific currency you need.
Many banks require you to order foreign currency in advance, especially for less common currencies. They may not keep large amounts of yen, pesos, or rubles on hand, so you might need to wait several business days for the order to arrive. If you need cash before a trip, plan ahead.
Where to get better rates than your bank
The cheapest way to get foreign currency is usually to withdraw cash from an ATM once you arrive in the country you are visiting. ATMs in that country typically offer rates much closer to the mid-market rate than banks do — often within 1 to 2 percent. Your own bank may charge a foreign ATM fee (typically $2 to $5 per withdrawal), but even with that fee, you usually come out ahead compared to exchanging at a bank before you leave.
Online currency exchange services like OFX, Wise, and XE offer rates closer to mid-market than banks do, though they are designed mainly for large transfers or people sending money abroad rather than travelers who need cash. Some require a minimum order amount or take a few business days to deliver. If you are exchanging a large sum and have time before your trip, these services can save you significant money.
Airport currency kiosks are convenient but charge some of the worst rates available — often 5 to 10 percent worse than mid-market. Use them only if you have no other option and need a small amount of cash to get your free guide.
Credit unions and specialized currency services
If you belong to a credit union, ask whether they offer currency exchange. Some credit unions offer better rates than banks, and a few specialize in serving specific communities and offer favorable rates for transfers to or currency exchange for particular countries. For example, some credit unions focused on serving Latino communities offer better rates on Mexican peso exchange than national banks do.
Larger credit unions that participate in shared branching networks may also let you order currency through a partner branch if your own branch does not stock it. Call your credit union's international services department to ask what they offer and what the rates are for the currency you need.
What to bring and how long it takes
To exchange currency at a bank, bring a government-issued photo ID (passport or driver's license) and the cash or traveler's checks you want to convert. The teller will process the exchange on the spot if the currency is in stock, which usually takes 10 to 15 minutes. If you are ordering currency in advance, the bank will tell you when it arrives and you can pick it up at the branch.
Some banks also allow you to order currency online through their website or app, then pick it up at a branch. This can save time if you are a regular customer with online banking set up. Check your bank's website or call ahead to see whether this option is available.
Exchanging currency when you return home
If you have leftover foreign currency when you return, most banks will exchange it back to dollars, though the rate will again be unfavorable. Some banks charge a fee for this reverse exchange as well. If you have only a small amount left, it may not be worth the cost of exchanging it. Many travelers keep small amounts of foreign currency for the next trip or donate it to charity.
If you have a significant amount left over, compare the cost of exchanging it at your bank against the cost of using an online service. For large amounts, an online currency service may offer a better rate even after accounting for delivery time.
Frequently Asked Questions
Can I exchange foreign money at any bank branch?
Not necessarily. Large national banks usually offer currency exchange at main branches or branches that handle international services, but smaller branches may not. Credit unions and smaller regional banks may not offer it at all. Call your bank or visit their website to find a branch near you that handles currency exchange.
What if my bank does not have the currency I need?
You can order it in advance — most banks will special-order currency and have it ready within a few business days. Some banks charge a fee for special orders. If you need currency urgently and your bank cannot help, try an online currency service or visit an airport kiosk, though both will cost more.
Is it better to exchange money before I travel or after I arrive?
In most cases, withdrawing cash from an ATM in the country you are visiting gives you a better rate than exchanging at a bank before you leave, even after accounting for ATM fees. Bring a small amount of local currency or dollars to cover immediate expenses when you arrive, then use an ATM.
Do I need to exchange all my money at once?
No. You can exchange smaller amounts over time if you prefer, though each transaction may include a separate fee. If your bank charges a flat fee per exchange, doing one larger exchange may cost less than multiple small ones.
What happens if the exchange rate changes between when I order currency and when I pick it up?
The rate you locked in when you placed the order is the rate you pay when you pick up the currency. The bank absorbs any rate changes that happen while the order is being filled. This protects you from rate swings, but it also means the bank has already factored in their expected profit when they quoted you the rate.