Most banks will exchange foreign currency, but only at a branch and usually only if you have an account there
Large banks like Bank of America, Chase, Wells Fargo, and Citibank all exchange foreign currency at many of their branches. However, the exchange happens in person at a physical location, not online or by mail. You typically need to be a customer of that bank, and you may need to order the currency ahead of time — same-day exchange is rare for anything beyond the most common currencies like euros, Canadian dollars, and British pounds.
The catch is the cost. Banks charge a markup on top of the real exchange rate, usually between 2 and 7 percent. That means if the actual rate is 1 USD = 0.92 EUR, your bank might give you 0.86 EUR per dollar. The markup varies by bank, by currency, and by how much you're exchanging. A bank won't tell you the markup upfront — you have to ask what rate they're offering and compare it to the real rate yourself.
If you don't have a bank account or your bank doesn't have a branch near you, currency exchange shops (sometimes called "forex" shops) will exchange cash without requiring an account. These are often located in airports, tourist areas, and downtown districts. They charge even higher markups than banks, usually 5 to 10 percent or more.
Key Takeaways
- Bank branches exchange foreign currency in person for account holders, but you usually need to order it a few days ahead for less common currencies.
- Banks charge a markup of 2 to 7 percent on top of the real exchange rate, and the exact rate depends on the currency and the amount.
- You can find the real exchange rate on XE.com, OANDA, or your bank's website, then compare it to what your bank is offering to see the actual cost.
- Currency exchange shops don't require an account but charge higher markups, typically 5 to 10 percent, and are most common in airports and tourist areas.
- Wire transfers and international money transfer services like Wise or OFX often have better rates than banks for moving money between countries, though they work differently than exchanging cash.
How to find out what rate your bank will offer
Call your bank's foreign exchange desk or visit a branch in person and ask for a quote on the specific currency and amount you need. Write down the rate they quote you. Then go to XE.com, OANDA, or your bank's own website and look up the mid-market rate — the real rate between banks — for that same currency pair at that same time of day.
Subtract the mid-market rate from the rate your bank quoted. That difference is your markup. For example, if the mid-market rate is 1 USD = 0.92 EUR and your bank quotes 0.88 EUR per dollar, you're paying a 4 percent markup. Multiply your total dollars by that percentage to see the actual dollar cost of the exchange.
Different banks charge different markups, so if the cost seems high, call another bank and ask for a quote. Some banks offer better rates to customers who exchange larger amounts or who have premium account types.
Ordering foreign currency ahead of time
Most banks keep only the most common currencies on hand — US dollars, euros, Canadian dollars, British pounds, Japanese yen, and sometimes a few others. If you need a less common currency, you'll need to order it several days in advance. The bank will order it from a currency supplier, and you'll pick it up at the branch once it arrives.
Ordering usually takes 3 to 7 business days, depending on the currency and the bank. Some banks charge an ordering fee on top of the exchange markup. Ask whether there's a fee before you place the order, and ask what happens if you change your mind — some banks will refund you, others won't.
If you're traveling soon and need currency quickly, a currency exchange shop at an airport can usually provide it the same day, though you'll pay a higher markup. Plan ahead if you can.
What to bring when you exchange currency at a bank
Bring your bank account card or ID, the cash or traveler's checks you want to exchange, and your passport if you're exchanging a large amount. Banks are required to report large foreign currency transactions to the government, so if you're exchanging more than $10,000, the bank will ask for your ID and may ask why you need the currency.
If you're exchanging traveler's checks, bring the checks and your ID. Some banks no longer accept traveler's checks, so call ahead to confirm. If you're exchanging foreign currency you already have (for example, leftover euros from a trip), bring the bills or coins and your ID.
Coins are harder to exchange than bills. Many banks won't exchange foreign coins at all, or will charge a higher fee. If you have leftover coins, a currency exchange shop is more likely to take them, though again at a higher cost.
Alternatives that often cost less than banks
If you're sending money to another country rather than exchanging cash, services like Wise, OFX, and Remitly often charge lower fees and offer better rates than banks. These services work by transferring money electronically from your bank account to a recipient's account abroad. They're not useful if you need physical cash before you travel, but they're much cheaper for moving larger amounts of money between countries.
Credit unions sometimes offer better exchange rates than big banks, especially if you're a member. Call your credit union and ask what rate they offer. Some credit unions partner with other credit unions abroad and offer special rates for members.
If you're traveling and need cash, using an ATM in the country you're visiting often gives you a better rate than exchanging cash before you leave. The ATM will use the bank's mid-market rate plus a small ATM fee, which is usually cheaper than the markup a bank charges for exchanging cash. However, your own bank may charge a foreign ATM fee, so ask about that before you travel.
Banks that commonly exchange foreign currency
| Bank | Currencies in stock | Ordering time | Account required |
|---|---|---|---|
| Bank of America | Major currencies at most branches | 3–5 business days for others | Yes |
| Chase | Major currencies at most branches | 3–7 business days for others | Yes |
| Wells Fargo | Major currencies at most branches | 3–5 business days for others | Yes |
| Citibank | Major currencies at select branches | 3–7 business days for others | Yes |
| Local credit unions | Varies by location | Varies | Usually yes |
Smaller regional banks may not exchange foreign currency at all. Call your bank's main number and ask whether your branch offers foreign exchange. If it doesn't, ask whether another branch in your area does.
What happens if you need currency but your bank won't exchange it
If your bank doesn't exchange foreign currency or doesn't have the currency you need, a currency exchange shop is your next option. These shops are independent businesses, not banks. They're common in airports, downtown areas of large cities, and tourist neighborhoods. You don't need an account, just cash and ID.
Currency exchange shops charge higher markups than banks — often 5 to 10 percent or more — but they usually have a wider range of currencies in stock and don't require ordering. Some shops also buy back foreign currency at the end of your trip, though again at a markup.
Before you exchange at a shop, ask what rate they're offering and what fee they're charging. Some shops advertise "no commission" but make their money on the markup instead. Compare the total cost to what your bank would charge.
Frequently Asked Questions
Can I exchange foreign currency online or by mail?
Most banks don't exchange currency online or by mail. You have to visit a branch in person with cash or traveler's checks. Some online banks and services like Wise will transfer money electronically to another country, but that's different from exchanging physical cash.
Do I need to be a customer of the bank to exchange currency?
Most large banks require you to have an account with them. Currency exchange shops don't require an account, but they charge higher fees. Call your bank to confirm their policy before you visit.
What's the difference between the mid-market rate and the rate my bank offers?
The mid-market rate is the real rate between banks and is what you see on financial websites. Your bank's rate includes their markup, which is how they make money on the exchange. The markup is the difference between the two rates, expressed as a percentage.
Should I exchange currency before I travel or use an ATM when I arrive?
Using an ATM in the country you're visiting usually costs less than exchanging cash before you leave, because ATMs use the mid-market rate plus a small fee. However, your own bank may charge a foreign ATM fee, so check with them first. For very large amounts, exchanging at your bank before you leave may be cheaper.
Can I return unused foreign currency to my bank?
Some banks will buy back unused currency at the end of your trip, but they'll charge a markup on that transaction too. The rate they offer for buying back is usually worse than the rate they offered when you exchanged it. Keep your receipt so you can compare.