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

Nearly every bank in the United States will exchange foreign currency for you, but what you pay depends on which bank you use, how much you exchange, and whether you order the currency in advance or need it same-day. Large national banks like Bank of America, Chase, and Wells Fargo all offer currency exchange at their branches, but they typically charge higher markups than online currency specialists. Credit unions often have better rates than big banks, and some regional banks negotiate better wholesale rates if you're exchanging a large amount.

The real cost of currency exchange is hidden in the exchange rate markup—the difference between what the bank pays for the currency and what they charge you. A bank might quote you a rate that looks reasonable until you compare it to the mid-market rate (the real wholesale rate banks use among themselves). That gap is where the bank makes its money, and it can range from 1% to 5% or more depending on the bank and the currency.

If you need currency before you travel, ordering it in advance usually locks in a better rate than buying it at the airport or asking for it same-day at a branch. Some banks let you order online and pick up at a branch within a few days. Others require you to call ahead or visit in person.

Key Takeaways

  • Large national banks exchange currency at most branches, but charge higher markups than credit unions or online specialists.
  • The exchange rate markup—the difference between the wholesale rate and what you pay—typically ranges from 1% to 5% and is where banks profit.
  • Ordering currency several days in advance usually gives you a better rate than same-day or airport exchange.
  • Credit unions and regional banks often negotiate better rates than national chains, especially for larger amounts.
  • You will need a valid ID and sometimes proof of the purpose of the exchange, depending on the amount and the bank's policies.

How to order foreign currency from your bank

The process differs slightly by bank, but most follow the same basic steps. Call your bank's main customer service line or visit a branch in person and ask about currency exchange. Tell them which currency you need, how much, and when you need it. The bank will quote you a rate (usually good for that day only) and tell you whether they have the currency in stock or need to order it.

If they need to order it, expect to wait 3 to 5 business days. Some banks charge a small ordering fee (typically $5 to $15) on top of the markup. Once the currency arrives, you'll pick it up at the branch with your ID and pay in cash, check, or debit card—most banks do not let you charge currency exchange to a credit card.

For amounts over $10,000, federal law requires the bank to file a Currency Transaction Report (CTR), which is routine and not a sign of wrongdoing. The bank will ask you to confirm the purpose of the exchange (travel, business, family support, etc.), and you may need to provide documentation like a plane ticket or business invoice.

Where to get better rates than your bank

If your bank's markup feels high, you have other options. Online currency exchange services like OFX, Wise (formerly TransferWise), and XE typically offer rates closer to the mid-market rate, with markups of 1% to 2% instead of 3% to 5%. These services work best if you're exchanging a larger amount (usually $1,000 or more) and can wait a few days for delivery.

Wise specializes in international transfers and multi-currency accounts, so if you're sending money abroad rather than getting physical cash, it often beats a bank's wire transfer rate. OFX and XE let you order physical currency or transfer money internationally. All three publish their rates publicly so you can compare before you commit.

Credit unions are another option if you belong to one. Many credit unions are part of shared branching networks and can access better wholesale rates than individual banks. Call your credit union's international services department and ask what they charge for currency exchange.

What to expect at the airport or in a foreign country

Airport currency exchange kiosks and exchange booths in foreign countries charge the highest markups of all—often 5% to 10% or more. Use them only if you have no other choice. If you land in a foreign country without local currency, your best option is usually to find an ATM and withdraw cash using your debit card. ATM fees are typically $2 to $5, and the exchange rate is usually the mid-market rate plus a small markup (1% to 3%), which is still better than an airport kiosk.

Before you travel, ask your bank whether your debit card works internationally and what their ATM fees are in the country you're visiting. Some banks waive ATM fees abroad if you have a premium checking account. If your bank charges high ATM fees, consider opening an account with a bank that doesn't—Schwab, for example, reimburses ATM fees worldwide.

Comparing rates before you exchange

To compare what different banks and services charge, start by checking the mid-market rate on XE.com or OANDA.com. These sites show you the real wholesale rate with no markup. Then call or visit your bank, an online service, and a credit union, and ask each one what rate they would give you for the amount you need on the day you need it. Write down the rate each one quotes and calculate the markup by comparing it to the mid-market rate.

The difference might seem small—a few percentage points—but on a $5,000 exchange, a 2% difference is $100. On a $10,000 exchange, it's $200. If you're moving money abroad or exchanging a large amount, spending 15 minutes comparing rates can save you hundreds of dollars.

What happens if you need currency urgently

If you need currency the same day or within 24 hours, your options narrow. Most banks can only do same-day exchange if they have the currency in stock, which is usually true for major currencies like euros, pounds, and Canadian dollars, but not for less common ones. Call your bank early in the day and ask what they have available. If they don't have what you need, ask whether they can order it for next-day pickup—some branches can.

Online services like Wise and OFX offer faster delivery in some cases, but they typically need 1 to 3 business days even for expedited orders. If you're truly stuck, a credit union or regional bank might have better inventory than a national chain, so it's worth calling around. As a last resort, you can exchange a small amount at the airport and plan to use ATMs for the rest of your cash needs once you arrive.

Frequently Asked Questions

Do I need to be a customer of the bank to exchange currency there?

Most banks will exchange currency for non-customers, but some charge a higher fee or require you to be an account holder. Call ahead and ask. Credit unions typically require membership, though some participate in shared branching networks that let you use other credit unions' services.

What's the difference between ordering currency online and picking it up in person?

Online ordering usually locks in a rate for a set period (often 24 hours), while in-person quotes are typically good only for that day. Online ordering also lets you compare rates from multiple services before you commit. The tradeoff is that you have to wait for delivery instead of walking out with cash the same day.

Can I exchange currency at an ATM abroad, or do I have to use a bank?

ATMs abroad give you local currency directly from your bank account, so you don't exchange currency at all—the bank does it for you at their rate. This is usually cheaper than a currency exchange booth or kiosk, but check your bank's ATM fees first. Some banks charge $3 to $5 per withdrawal abroad.

What if the bank's rate changes between when I call and when I pick up the currency?

Once you place an order and the bank quotes you a rate, that rate is locked in for the time period the bank specifies—usually 24 to 48 hours. If you don't pick up within that window, the rate expires and you'll get a new quote when you return. This is why ordering in advance is important: it locks in your rate longer.

Is there a limit to how much currency I can exchange?

There's no legal limit on how much you can exchange, but amounts over $10,000 trigger a Currency Transaction Report, which is standard procedure. For very large amounts, some banks require advance notice so they can order enough currency. Call your bank and ask what their process is for large exchanges.