Yes, most banks exchange foreign currency, but the rate and fees vary widely
Most banks in the United States will exchange foreign currency for you, either in person at a branch or by ordering it ahead. However, banks do not offer the same exchange rate you see quoted online. They buy and sell currency at a markup — the difference between what they pay for the currency and what they charge you is how they profit on the transaction. A bank's markup typically ranges from 2 to 8 percent above the mid-market rate, though some banks charge more. You will also pay a flat fee, which ranges from $5 to $15 per transaction at most institutions.
The actual cost depends on three things: which bank you use, how much currency you need, and whether you order ahead or walk in. Large national banks like Bank of America, Wells Fargo, and Chase tend to charge higher markups than credit unions or online banks. If you need a small amount of currency for a trip, the total cost might be $20 to $40 in fees and markup combined. If you are exchanging several thousand dollars, the markup alone could cost you $100 or more.
Key Takeaways
- Banks exchange foreign currency at a rate higher than the mid-market rate you see online, with markups typically between 2 and 8 percent.
- You will pay both a markup on the exchange rate and a flat fee per transaction, usually $5 to $15.
- Ordering currency ahead of time often costs less than buying it on the spot, because banks can source it more cheaply when they have advance notice.
- Credit unions and online banks often charge lower markups than large national banks, so comparing rates before you exchange can save you money.
- For large amounts or frequent exchanges, alternatives like wire transfers or currency exchange services may cost less than a bank's retail rate.
How to order foreign currency from your bank
Most banks require you to order currency in advance, usually 3 to 7 business days before you need it. Call your bank's customer service line or visit a branch and tell them which currency you need and how much. They will quote you a rate, which is locked in at the time you place the order. You then pay the bank, and they hold the currency until you pick it up at a branch or have it delivered to your home.
Some banks offer same-day or next-day currency orders, but these typically carry a higher fee or a worse exchange rate than advance orders. If you are leaving for a trip and did not plan ahead, you may have no choice but to pay the premium. A few banks, including some credit unions, will exchange currency on the spot if they have it in stock, but this is becoming less common as fewer people use physical currency abroad.
What exchange rate your bank will quote you
Banks use the mid-market rate — the rate at which banks trade currency with each other — as a starting point. You can find the current mid-market rate on websites like XE.com or OANDA. Your bank will then add its markup on top of that rate. For example, if the mid-market rate for euros is 1.10 USD per euro, your bank might quote you 1.05 USD per euro, meaning you lose about 4.5 percent of your money to the markup.
The markup is not negotiable at most banks, though some institutions offer better rates to customers who hold large account balances or have premium accounts. If you are exchanging a large sum, it is worth calling a few banks to compare their quoted rates before you commit. The difference between a 2 percent markup and a 6 percent markup can be hundreds of dollars on a $5,000 exchange.
When to order currency and when to use alternatives
If you are traveling and need cash in a foreign currency, ordering from your bank is straightforward but not always the cheapest option. For small amounts — under $500 — the flat fee and markup combined might cost you $30 to $50, which is acceptable for convenience. For larger amounts, you may save money by using a wire transfer to a foreign bank account, using a currency exchange service like OFX or Wise, or withdrawing cash from an ATM abroad using a debit card with no foreign transaction fees.
ATM withdrawals abroad often have the best exchange rate because they use the mid-market rate or very close to it, though your bank may charge a flat ATM fee of $2 to $5. If you are moving money to another country rather than traveling, a wire transfer or a service like Wise will almost always be cheaper than exchanging cash at a bank. These services are designed for larger transfers and offer rates much closer to mid-market.
Fees and markups at different types of banks
The cost of exchanging currency varies significantly depending on the type of bank you use. Large national banks charge the highest markups and fees, while credit unions and online banks tend to be more competitive. The table below shows typical ranges, though your specific bank may charge more or less depending on the currency, the amount, and your account type.
| Bank Type | Typical Markup | Flat Fee | Order Time |
|---|---|---|---|
| Large national banks (Bank of America, Wells Fargo, Chase) | 4–8% | $10–$15 | 3–7 business days |
| Regional banks | 3–6% | $5–$10 | 3–7 business days |
| Credit unions | 2–4% | $5–$10 | 3–7 business days |
| Online banks | 2–5% | $0–$10 | 5–10 business days |
Credit unions and online banks tend to offer better rates than large national banks, but they may take longer to deliver the currency or may have limits on how much you can order at once. If you are a member of a credit union, it is worth asking about their currency exchange rates before you use a national bank. Online banks like Charles Schwab and some others do not charge foreign transaction fees on ATM withdrawals, which can be a better option than exchanging currency at all.
What happens if you need currency the same day
If you are leaving for a trip and did not order currency in advance, your options are limited. Some bank branches keep small amounts of common currencies like euros, British pounds, and Canadian dollars in stock and can exchange them on the spot. Call your branch directly to ask what currencies they have available. If they do not have what you need, they can usually order it for next-day pickup, though you will pay a premium rate for the rush.
Your other option is to use a currency exchange kiosk at an airport or tourist area, but these typically charge even higher markups — often 8 to 15 percent — than banks. If you have time, it is almost always better to wait for a bank order than to use an airport kiosk. If you are in a true emergency and need cash immediately, using an ATM abroad with your debit card is usually your cheapest option, even if you have to pay a $5 ATM fee.
How to compare rates before you exchange
Before you order currency from your bank, call at least two other banks or credit unions and ask for a quote on the exact amount you need. Ask them to lock in the rate for a specific time period — usually 24 to 48 hours — so you can compare without the rate changing. Write down the mid-market rate from XE.com at the time you call, then calculate what percentage markup each bank is charging you.
For example, if the mid-market rate is 1.10 and a bank quotes you 1.05, divide 0.05 by 1.10 to get 0.045, or 4.5 percent markup. Add the flat fee to this calculation to get your total cost. If one bank charges a 3 percent markup plus a $5 fee and another charges a 6 percent markup plus a $10 fee, the difference on a $2,000 exchange could be $60 or more. Taking 15 minutes to compare rates can save you real money.
Frequently Asked Questions
Can I exchange currency at any bank branch or only my home branch?
Most banks allow you to pick up ordered currency at any branch, though some require you to pick it up at the branch where you placed the order. Call ahead to confirm. If you are traveling and need currency in a different city, you can usually arrange to pick it up at a branch near your destination.
What if my bank does not have the currency I need?
Most large banks can order any major currency — euros, pounds, yen, pesos, and others — within 3 to 7 business days. If you need a less common currency, your bank may have to special-order it, which can take 2 to 3 weeks. Ask your bank how long it will take before you commit to the order.
Do I have to exchange currency at a bank, or can I do it somewhere else?
You have several options: banks, currency exchange services like Wise or OFX, ATM withdrawals abroad, and airport kiosks. For traveling, ATM withdrawals often have the best rate. For moving money internationally, wire transfers or currency services are usually cheaper than banks. Airport kiosks are the most expensive option.
Will my bank charge me a fee if I exchange currency and then return it unused?
Yes, most banks will charge you a fee to exchange unused currency back into dollars, and the rate will be worse than the rate you received when you bought it. Some banks waive the fee if you return the currency within a short time window, usually 30 days. Ask your bank about their return policy before you order.
Is it better to exchange money before I travel or after I arrive?
For most travelers, exchanging before you leave is more convenient because you have cash when you land. However, if you can use ATMs abroad, withdrawing cash after you arrive often gives you a better rate. If you are staying in one place for a long time, exchanging a large amount before you go may be cheaper than multiple ATM withdrawals.