Most major banks exchange foreign currency, but the rates and fees vary widely — and you'll often get a better deal elsewhere
Your bank can exchange foreign money, but it may not be your cheapest option. Large banks like Chase, Bank of America, Wells Fargo, and Citibank all offer currency exchange at their branches or through wire transfers. However, they typically charge a markup on the exchange rate — meaning they buy the currency from you at a lower rate than the market rate, or sell it to you at a higher rate. On top of that, many charge a flat fee per transaction, usually between $15 and $30.
Credit unions often have better rates than big banks, and some online banks and currency exchange specialists charge less overall. The difference matters most when you're exchanging large amounts — a 2% markup on $5,000 costs you $100, money you keep if you find a better rate elsewhere.
Key Takeaways
- Major banks exchange currency at their branches or by phone, but charge markups and fees that can cost 2% to 5% of your total.
- Credit unions, online banks, and currency exchange specialists often offer better rates, especially for amounts over $1,000.
- You need a valid ID and usually 24 to 48 hours notice for large amounts, since banks don't keep all currencies in stock.
- Ordering currency before you travel costs less than exchanging money at an airport, where markups can reach 10% or higher.
- Compare the all-in cost — rate plus fees — across at least two providers before you exchange, since the best deal changes by currency and amount.
How banks charge for currency exchange
Banks make money on currency exchange in two ways: the markup on the rate itself, and a transaction fee. The markup is invisible — you see only the rate the bank quotes you, which is already higher (if you're buying foreign currency) or lower (if you're selling it) than the mid-market rate you'd find on a financial news site. The fee is a separate charge, usually $15 to $30 per transaction.
A typical example: the mid-market rate for euros might be 1.10 USD per euro. Your bank might quote you 1.07, then charge you $25 to complete the exchange. On $5,000, that means you get 4,673 euros instead of 4,545 euros at the mid-market rate — a difference of about $128 in the bank's favor, plus the $25 fee.
Credit unions usually charge lower markups than big banks, often 1% to 2% instead of 2% to 3%, and some waive the transaction fee for members. Online banks like Wise (formerly TransferWise) and OFX charge markups closer to 0.5% to 1%, making them competitive even after their fees.
What you need to bring and how long it takes
To exchange currency at a bank branch, bring a valid photo ID — a passport, driver's license, or state ID card. For large amounts (usually over $10,000), the bank will file a Currency Transaction Report with the federal government, which is routine and not a problem. You may also need to show proof of the reason for the exchange, though most banks don't ask unless the amount is very large.
For small amounts available in stock, exchange can happen the same day. For larger amounts or less common currencies, the bank orders from a currency supplier and needs 24 to 48 hours. If you're leaving in two days, order now — waiting until the day before travel means paying airport rates or missing your deadline.
You can also exchange currency by phone or online if your bank offers it, though you'll need to arrange delivery or pick up the cash at a branch. Some banks mail currency to your home, which adds another day or two.
Comparing banks to other currency exchange options
For most people, the choice is between a bank, a credit union, an online currency service, or a currency exchange specialist. Here's how they typically stack up:
| Provider Type | Typical Markup | Typical Fee | Best For |
|---|---|---|---|
| Major bank (Chase, Bank of America, Wells Fargo) | 2% to 3% | $15 to $30 | Convenience if you're already a customer and need cash same-day |
| Credit union | 1% to 2% | $0 to $15 | Members who want better rates than big banks |
| Online currency service (Wise, OFX, Remitly) | 0.5% to 1% | $0 to $10 | Large amounts or transfers to another country |
| Currency exchange specialist (Travelex, ICE) | 2% to 4% | $0 to $10 | Rare currencies or when you need cash immediately |
| Airport exchange | 5% to 10% | $5 to $15 | Emergency only — rates are the worst |
The best deal depends on the currency, the amount, and how soon you need it. For common currencies like euros, pounds, or Canadian dollars in amounts over $1,000, an online service usually wins. For rare currencies or same-day cash, a bank or specialist may be your only option.
How to order foreign currency before you travel
Most banks let you order currency in advance by phone, online, or in person. Call your bank's foreign exchange department or visit a branch and ask to order the currency you need. Provide the amount and the date you need it. The bank will quote you a rate (which locks in for a set period, usually 24 to 48 hours), charge your account, and have the cash ready for pickup or delivery.
Ordering a few days before travel is cheaper than exchanging money at the airport, where markups can reach 10% because you have no other choice. If you're traveling internationally, consider ordering before you leave — you'll have the local currency in hand and won't scramble at an airport kiosk.
Some banks also offer travel cards or prepaid currency cards, which you load with foreign currency before you leave. These lock in the rate when you load the card, not when you spend it, and can be cheaper than exchanging cash if the exchange rate moves in your favor. However, they charge a loading fee and sometimes a monthly maintenance fee, so compare the total cost.
What to do if your bank doesn't have the currency you need
Not all banks stock all currencies. If your bank doesn't have what you need, ask if they can order it — most large banks can order any major currency within 24 to 48 hours. If they can't, or if the fee is too high, try a credit union, a currency exchange specialist, or an online service.
For very rare currencies (like the currency of a small country or a currency in low demand in your area), a specialist currency exchange company may be your only option. These companies maintain relationships with currency suppliers worldwide and can order almost anything, though the markup may be higher and the wait longer.
If you're sending money to another country rather than carrying cash, an online transfer service like Wise, OFX, or Remitly is usually cheaper and faster than a bank wire. These services specialize in international transfers and often have better rates because they move money in bulk.
How to get the best rate when you exchange
Compare the all-in cost — the rate plus all fees — across at least two providers before you exchange. Don't just look at the exchange rate; add up the transaction fee, any delivery fee, and any other charges. A bank with a slightly worse rate but no fee might cost less overall than a provider with a better rate and a $25 fee.
Check the rate on the day you plan to exchange, not days in advance, since rates move constantly. Some banks let you lock in a rate for 24 or 48 hours, which protects you if the rate moves against you — ask if this is available.
If you're exchanging a large amount, call and ask if the bank will negotiate the markup or waive the fee. Some banks will for customers with good relationships or large balances. It never hurts to ask.
Frequently Asked Questions
Can I exchange foreign currency at any bank branch, or only at the main office?
Most large banks can order currency at any branch, though the branch may need to order from a central location and have it delivered. Call ahead to confirm the branch can handle your request and how long it will take. Some smaller branches may not stock currency and will need extra time to order.
What's the difference between exchanging cash and using a travel card?
With cash exchange, you pay the rate and fees once, then spend the cash. With a travel card, you load it with foreign currency before you leave, locking in the rate at that moment. Travel cards charge a loading fee and sometimes monthly fees, so compare the total cost. Cash is simpler if you're only traveling once; a card makes sense if you travel frequently to the same country.
Do I have to exchange all my money at once, or can I do it in smaller amounts?
You can exchange in smaller amounts, but each exchange incurs a separate fee. If you exchange $2,000 twice, you pay two $25 fees instead of one. Exchanging once in the amount you need usually costs less, but if the rate moves significantly, splitting the exchange lets you take advantage of a better rate on the second half.
What happens if I exchange money and the rate drops the next day?
You're locked into the rate you exchanged at — you can't go back and get a better rate. This is why locking in a rate in advance (if your bank offers it) can help: if the rate moves against you, you're protected. If you're worried about rate movement, exchange only what you need immediately and wait to exchange the rest.
Is it cheaper to exchange money in the country I'm visiting?
It depends on the country and the currency. In most developed countries, exchanging before you leave is cheaper because you avoid airport markups and can compare rates. In some developing countries, the local rate may be better, but you risk getting a poor rate at an airport or tourist area. Research the typical rates in your destination before you leave, then decide whether to exchange at home or abroad.