Most banks exchange currency, but the rate you get depends on the bank and the amount

Nearly every bank in the United States will exchange foreign currency for you, but they do not all do it the same way. Some handle it in the branch, some require advance notice, some only exchange for customers with accounts, and some charge fees that can be substantial. The exchange rate you receive is almost never the mid-market rate you see online—banks buy and sell currency at rates that include their margin, which is how they profit on the transaction.

The process itself is straightforward: you bring cash or request a wire in a foreign currency, the bank converts it at their posted rate, and you receive the equivalent in US dollars (or vice versa). But the timing, the rate, and the fees vary enough that it matters which bank you use and how you structure the transaction.

Key Takeaways

  • Banks exchange currency at rates that include their own markup, typically 1 to 3 percent above the mid-market rate, so the rate you see online will be better than what the bank offers.
  • Large banks like Chase, Bank of America, and Wells Fargo exchange currency in most branches, but smaller banks may not or may require advance notice.
  • Exchanging currency before you travel costs more than exchanging it at your destination, because US banks mark up the rate more than foreign banks do.
  • Wire transfers in foreign currency move through correspondent banks and take three to five business days, with fees charged by both your bank and the receiving bank.
  • Specialty currency exchange services and online platforms often offer better rates than banks, though they come with their own timing and verification requirements.

How banks set their exchange rates

Banks do not set exchange rates independently. They use the mid-market rate—the rate at which banks trade currency with each other on the foreign exchange market—as their starting point. Then they add a markup, usually between 1 and 3 percent, depending on the currency, the amount, and the bank's own policy.

A mid-market rate might show EUR/USD at 1.10, meaning one euro equals $1.10. But when you exchange euros for dollars at your bank, you might receive $1.0747 per euro instead—a markup of about 2.3 percent. The bank keeps the difference. For large transactions, some banks will negotiate a tighter spread, but for most customers exchanging cash or small amounts, the markup is fixed.

The markup exists because currency exchange is a service the bank provides, and they assume some risk holding foreign currency inventory. They also need to cover the cost of physically handling cash, verifying it, and storing it.

Which large banks exchange currency in branches

The major US banks—Chase, Bank of America, Wells Fargo, Citibank, and US Bank—all exchange currency, but the details differ. Chase and Bank of America will exchange currency in most branches without advance notice for amounts under $10,000, though availability varies by location. Wells Fargo requires advance notice for most foreign currencies and may charge a fee of $7.50 to $15 depending on the currency and whether you have an account with them.

Citibank exchanges currency at branches in major cities and through their international banking division. US Bank does exchange currency but primarily for customers with accounts; non-customers may face restrictions or higher fees. Smaller regional banks often do not exchange currency at all, or they do it only for account holders and only for major currencies like euros, pounds, and Canadian dollars.

Before you go to a branch, call ahead. Many banks keep limited foreign currency on hand and may need to order it, which adds one to three business days to the timeline. If you need an unusual currency—Thai baht, Philippine pesos, South African rand—you may need to special-order it or use a specialty exchange service instead.

Wire transfers in foreign currency and how long they take

When you send money internationally, your bank converts it to the destination currency and sends it through the SWIFT network, a system that connects banks worldwide. The process involves your bank, one or more correspondent banks (intermediary banks that handle the transfer), and the receiving bank. Each one takes a cut.

A wire in foreign currency typically takes three to five business days, though it can take longer if the destination country has weekend banking closures or if the receiving bank is in a time zone far from yours. Your bank charges an outgoing wire fee, usually $15 to $50. The receiving bank may charge an incoming fee of $10 to $25. Correspondent banks may also deduct fees from the amount that arrives, so the recipient gets less than you sent.

The exchange rate on a wire is the same markup as in-branch exchange—typically 1 to 3 percent above mid-market. Some banks offer better rates for larger amounts or for customers with premium accounts, but you have to ask. The rate is locked in when you initiate the wire, not when it arrives.

Why exchanging currency before you travel costs more

US banks charge a higher markup on foreign currency than banks in other countries do. If you exchange dollars for euros at a US bank before you travel, you pay the US bank's markup. If you wait and exchange dollars for euros at a bank in France, you pay the French bank's markup—which is typically lower, sometimes under 1 percent.

The reason is competition and volume. Banks in major financial centers like London, Frankfurt, and Singapore handle far more currency exchange than a typical US branch, so they can operate on a tighter margin. A US bank holding euros is also taking on currency risk—the value of the euro might fall before they sell those euros to another customer—so they charge more to compensate.

For most travelers, the practical information is to exchange a small amount of currency at your US bank before you leave (enough for a taxi and a meal), then use ATMs or local banks at your destination. ATM withdrawals in foreign currency often have a better effective rate than exchanging cash, because the ATM operator's markup is usually smaller than a bank's.

Specialty currency exchange services and online platforms

Companies like OFX, Wise (formerly TransferWise), and Remitly offer currency exchange without a physical branch. They typically offer rates closer to mid-market than banks do—sometimes within 0.5 percent—because they operate with lower overhead and higher volume. They are not banks, so they are regulated differently, but they are licensed money transmitters in the US and most other countries.

The tradeoff is timing and verification. Wise requires you to verify your identity through their app, which takes a few minutes to a few hours depending on the verification method. OFX requires a bank account to fund the transfer. Remitly is designed for sending money to specific countries and may not support all currency pairs. All three charge fees that are transparent upfront, usually $1 to $15 depending on the amount and the currency pair.

For a one-time exchange of a small amount, a bank branch is often simpler. For regular international transfers or large amounts, a specialty service usually saves money. Compare the all-in cost—exchange rate plus fees—before you choose.

What happens when you exchange currency at an airport

Airport currency exchange kiosks charge the highest markups of any option, often 3 to 5 percent above mid-market, sometimes more. They exist because travelers need currency when ready and have no other option. If you can avoid them, do. Exchange money at your bank before you travel, or use an ATM at the airport to withdraw local currency from your US account—the ATM fee is usually $2 to $5, and the exchange rate is better than a kiosk.

Some airports have bank branches (Chase, Bank of America, and others operate in major hubs), and their rates are better than kiosks, though still higher than a branch in a city. If you are traveling to a country where ATMs are reliable and widely available, skip the exchange entirely and withdraw cash when you arrive.

Frequently Asked Questions

Can I exchange currency without a bank account?

Yes. Most large banks exchange currency for non-customers, though some charge a higher fee or require advance notice. Specialty services like Wise and OFX require you to create an account with them, but not a bank account. Currency exchange kiosks at airports and tourist areas accept anyone but charge the highest rates.

What is the difference between exchanging cash and wiring money?

Exchanging cash means you hand over physical bills and receive physical bills in another currency. Wiring means the money moves electronically through the banking system. Cash exchange is when ready but only works for amounts you can carry. Wires take three to five days but work for any amount and are safer for large sums.

Do I need to tell my bank I am exchanging currency?

No, not for small amounts. For amounts over $10,000, banks are required to file a Currency Transaction Report with the US government, but this is routine and does not affect you. If you are exchanging an unusually large amount or an unusual currency, calling ahead to confirm availability is practical, not required.

Why is the exchange rate different every time I check?

The mid-market rate changes constantly as banks trade currency with each other. Your bank's rate—mid-market plus their markup—changes throughout the day. The rate you see online may be from a few minutes ago. When you lock in a rate by initiating a transaction, that rate is what you get, even if the mid-market rate moves after that.

Is it better to exchange before I travel or when I arrive?

It is usually better to exchange when you arrive, because banks at your destination charge lower markups than US banks. Exchange a small amount at your US bank before you leave, then use ATMs or local banks once you arrive. This balances convenience with cost.