Most banks exchange foreign currency, but rates and fees vary widely

Nearly every major bank in the US will exchange foreign currency for you, but the rate you get and what you pay in fees depends on which bank you use, how much you're exchanging, and whether you order the currency in advance or need it same-day. Banks do not all charge the same markup over the real exchange rate, and some charge flat fees on top of that markup. A few banks offer better rates if you hold certain account types or exchange larger amounts.

The real exchange rate — what you'd see on a financial news site — is not what you pay. Banks buy currency wholesale and sell it to you retail, which means they mark it up. That markup is how they make money on the transaction. You can shop around, because markups differ by bank and by currency.

If you need currency fast, your bank branch can usually give it to you same-day if they stock that currency. If they don't stock it, they'll order it from a currency supplier, which typically takes three to five business days. Some banks charge more for rush orders.

Key Takeaways

  • Major banks like Chase, Bank of America, Wells Fargo, and Citibank all exchange foreign currency, but each charges different markups and fees.
  • The exchange rate you see online is not the rate you pay — banks mark up the wholesale rate, and the markup varies by bank and currency.
  • Ordering currency in advance usually costs less than getting it same-day, because advance orders let banks source it more cheaply.
  • Credit unions and online currency specialists sometimes offer better rates than traditional banks, so comparing options before you exchange can save you money.
  • You'll need a valid ID and proof of the purpose of the exchange for amounts over $10,000 due to federal reporting rules.

How bank markups and fees work

When you exchange $1,000 USD for euros at your bank, you don't get the mid-market rate you see on Google. Instead, the bank applies a markup — typically 1% to 3% above the mid-market rate — and may also charge a flat fee of $5 to $15 per transaction. Some banks waive the flat fee if you're an account holder or if you exchange above a certain amount.

The markup is the bank's profit on the currency sale. A 2% markup on $1,000 means you lose $20 in exchange value before you even spend the currency. On top of that, if the bank charges a $10 flat fee, your total cost is $30 for the privilege of getting that currency from them instead of from a competitor.

A few banks offer tiered pricing: if you exchange $5,000 or more, they might reduce the markup to 1.5%. Some banks also offer better rates to customers who hold premium checking accounts or have a certain balance. Call your bank and ask what rate they'd give you for your specific amount and currency before you commit to exchanging there.

Ordering in advance versus same-day exchange

If you order foreign currency three to five business days ahead, your bank can source it more cheaply from wholesale suppliers, and they often pass some of that savings to you in the form of a lower markup. Same-day currency — especially for less common currencies — costs more because the bank has to pull from limited inventory or pay a premium to get it fast.

To order in advance, call your bank's foreign exchange desk or visit a branch with a currency service. You'll tell them how much of which currency you need and when you need it. They'll quote you a rate, lock it in (usually for 24 to 48 hours), and have the cash ready for pickup on your requested date. You pay when you pick it up.

Same-day exchange is possible if your branch stocks that currency. Major branches in cities with international travel usually keep euros, pounds, yen, and Canadian dollars on hand. Smaller branches or rural areas may not stock anything beyond euros and pounds. If your branch doesn't have the currency, they can order it, but you'll pay a rush fee — often an extra 1% to 2% on top of the standard markup.

Which banks offer the best rates

Chase, Bank of America, Wells Fargo, and Citibank all exchange currency at their branches, but their markups are not identical. Chase typically charges 1% to 2% markup plus a $5 to $10 flat fee. Bank of America charges 1.5% to 2.5% plus a $10 fee. Citibank often has slightly better rates for larger exchanges ($5,000 and up) if you're a Citibank customer.

Credit unions sometimes beat bank rates. If you belong to a credit union, ask what they charge before you go to your bank. Some credit unions charge only 1% markup with no flat fee, which can save you significantly on larger exchanges.

Online currency specialists like OFX, Wise, and XE also exchange currency and often advertise lower markups than banks. However, they typically require you to transfer money electronically first, which takes one to three business days. They're useful if you're not in a hurry and you're exchanging a large amount, but they won't help you if you need physical cash today.

What you need to bring to exchange currency

Bring a valid government-issued ID — a passport, driver's license, or state ID card. The bank needs to verify your identity before they hand over currency.

For exchanges of $10,000 or more, federal law requires the bank to file a Currency Transaction Report (CTR) with the Financial Crimes Enforcement Network (FinCEN). This is routine and not a sign of suspicion. The bank will ask you the purpose of the exchange — whether it's for travel, business, or another reason — and may ask for supporting documents like a plane ticket or business invoice. Have those ready if you're exchanging a large amount.

If you're exchanging currency on behalf of someone else, bring a signed letter from that person authorizing you to do so, along with their ID. Some banks require the person to be present in person, so call ahead and ask.

Comparing rates before you exchange

Call or visit the foreign exchange desk at your bank and ask for a quote on the specific amount and currency you need. Write down the rate, the markup, and any flat fees. Then call one or two other banks or a credit union and ask the same question. The difference between a 1% markup and a 2.5% markup on $2,000 is $30, which is worth five minutes of phone calls.

If you're exchanging a large amount or an unusual currency, the rate difference can be much larger. For example, exchanging $10,000 at a 1% markup costs $100, while a 2.5% markup costs $250 — a $150 difference for the same currency.

Ask whether the rate is locked in or whether it can change between the time you're quoted and the time you pick up the currency. Most banks lock rates for 24 to 48 hours if you're ordering in advance. Same-day rates are usually locked at the moment you pay.

What happens if you need currency while traveling

If you're already abroad and need more cash, your bank's ATM network is usually cheaper than exchanging currency at an airport or hotel. Most US banks charge a flat fee of $2 to $5 per foreign ATM withdrawal, plus the ATM operator's fee (usually $1 to $3). That's typically cheaper than the markup you'd pay at a currency exchange booth at an airport, which can be 3% to 5%.

Before you travel, ask your bank which ATM networks they partner with in the countries you're visiting. Citibank, for example, has ATM partnerships in many countries that waive or reduce the foreign ATM fee. If your bank doesn't have partnerships where you're going, using a credit card for purchases and withdrawing cash only when necessary keeps costs down.

Frequently Asked Questions

Can I exchange currency at any bank branch, or only at the main branch?

Most bank branches can order currency for you, but not all branches stock physical cash in every currency. Larger branches in cities usually have euros, pounds, yen, and Canadian dollars on hand. Smaller branches may only stock euros. Call your branch first to ask whether they have the currency in stock, or ask them to order it for you.

What's the difference between the mid-market rate and the rate my bank quotes me?

The mid-market rate is the wholesale rate banks use to trade with each other — it's what you see on financial websites. Your bank's rate includes their markup, which is their profit. The markup is typically 1% to 3%, meaning you get 1% to 3% less currency than you would at the mid-market rate.

Do I have to exchange currency at my own bank, or can I go to any bank?

You can exchange currency at any bank, but you may get better rates at your own bank if you're a customer. Some banks offer discounts to account holders. You'll need a valid ID either way. Call ahead to confirm they have the currency you need or can order it.

Is it cheaper to exchange currency before I travel or after I arrive?

Exchanging before you travel is almost always cheaper. US banks offer better rates than airport exchanges or hotel exchanges in the country you're visiting. Airport exchanges typically charge 3% to 5% markup, while your bank charges 1% to 3%. Order a few days ahead to get the best rate.

What if I exchange currency and then my travel plans change?

Most banks will exchange foreign currency back to US dollars, but they charge a markup on the return exchange too. You'll lose money on both the outbound and return exchange. If you haven't picked up the currency yet, call your bank and cancel the order — you won't be charged. If you've already picked it up, ask whether they'll buy it back and at what rate before you hand it over.