Most banks do exchange foreign currency, but not all branches do it, and the rates and fees vary widely enough that you should compare before you hand over your money.
Large banks like Bank of America, Chase, Wells Fargo, and Citibank all offer currency exchange at their main branches and some regional locations. Smaller regional banks and credit unions may not stock foreign currency at all, or may order it for you and charge a premium while they wait for it to arrive. The exchange rate a bank offers you is almost never the mid-market rate you see online — it includes the bank's markup, which can range from 1 percent to 5 percent or higher depending on the currency and the bank.
You do not have to use a bank. Currency exchange shops, online transfer services, and airport exchanges all exist, and each has different costs and speed. The choice depends on how much you need to exchange, what currency you need, and whether you need it today or can wait a few days.
Key Takeaways
- Banks exchange foreign currency at most large branches, but the rate includes a markup of 1 to 5 percent or more above the mid-market rate.
- You should call your bank ahead of time to confirm they have the currency in stock, because ordering it can take three to seven business days.
- Airport currency exchanges charge the highest markups and fees, often 5 to 10 percent above mid-market, so avoid them unless you have no other option.
- Online transfer services and currency exchange shops often offer better rates than banks, but require a few business days and may have minimum amounts.
- The mid-market rate you see on Google or XE.com is what banks pay each other — you will always pay more than that rate no matter where you exchange.
How bank currency exchange works and what it costs
When you walk into a bank branch and ask to exchange dollars for euros or another currency, the teller looks up the current exchange rate, applies the bank's markup, and quotes you a price. That markup is the bank's profit on the transaction. A bank might buy euros at the mid-market rate of 1.10 dollars per euro, then sell them to you at 1.13 dollars per euro — a 2.7 percent markup. Some banks also charge a flat fee of $5 to $15 per transaction on top of the rate markup.
The markup varies by currency. Common currencies like euros, British pounds, and Canadian dollars usually have smaller markups because banks trade them constantly. Currencies from smaller countries or less common destinations can have markups of 5 percent or higher because the bank has to hold inventory longer or order from a currency wholesaler.
You need to call your branch before you go in. Most branches do not keep large amounts of foreign currency on hand. If they do not have what you need, they will order it from a currency wholesaler, which takes three to seven business days. Some banks charge an ordering fee on top of the exchange markup. Ask the bank for the total cost — the exchange rate they will give you plus any fees — before you commit.
Comparing banks to other exchange options
A bank is not always the cheapest place to exchange currency. The table below shows typical markups and fees across different methods, though the exact cost depends on the currency, the amount, and the provider.
| Method | Typical Markup | Flat Fee | Speed | Best For |
|---|---|---|---|---|
| Bank branch | 1–5% | $5–$15 | Same day (if in stock) | Cash you need today |
| Currency exchange shop | 2–4% | $0–$10 | Same day | Cash in a city with exchange shops |
| Online transfer service | 0.5–2% | $0–$5 | 1–3 business days | Larger amounts, time to wait |
| Airport exchange | 5–10% | $5–$20 | Same day | Emergency only |
Currency exchange shops are independent businesses that buy and sell foreign currency. They are common in cities with large immigrant populations or near tourist areas. Their markups are often lower than banks because they have lower overhead, but you need to call ahead to confirm they have the currency you need. Some shops require a minimum exchange amount, like $500 or $1,000.
Online transfer services like Wise (formerly TransferWise), OFX, and Remitly let you exchange currency and send money abroad without visiting a physical location. They typically offer rates closer to mid-market than banks do, with markups of 0.5 to 2 percent. The tradeoff is that the money takes one to three business days to arrive, and you need a bank account to use them. These services work best if you are exchanging a larger amount — $500 or more — because the savings on the rate offset any fees.
Airport currency exchanges charge the highest markups and fees of any option, often 5 to 10 percent above mid-market. Use them only if you land in a country and have no other way to get local currency before you need it.
What to do if your bank does not have the currency
If your bank does not stock the currency you need, you have three choices: order it from the bank and wait, go to a currency exchange shop, or use an online transfer service.
Ordering from the bank usually takes three to seven business days. Some banks charge an ordering fee of $10 to $25 on top of the exchange markup. Ask the bank for the total cost and the exact date they expect the currency to arrive. If you need the currency sooner, a currency exchange shop in your area may have it in stock, or an online service can send it to your bank account in one to three days.
If you are exchanging a large amount — $5,000 or more — call a few banks and exchange shops to compare rates. A difference of 1 or 2 percent on a large exchange can save you hundreds of dollars. For smaller amounts, the difference is usually $20 to $50, so the convenience of your nearest bank may be worth it.
How to get the best rate when you exchange currency
The mid-market rate — the rate banks pay each other — changes throughout the day. You cannot lock in that rate as a customer, but you can time your exchange to catch a favorable moment. Check the rate on Google, XE.com, or OANDA for a few days before you need the currency. If the rate moves in your favor, exchange sooner rather than later. If it is moving against you, wait if you can.
Exchange larger amounts at once rather than in multiple small transactions. Each transaction carries a fee or markup, so one $5,000 exchange costs less than five $1,000 exchanges.
Ask the bank or exchange shop for the all-in cost before you commit. That means the exchange rate they will give you plus any flat fees, ordering fees, or other charges. Do not accept a quote for just the exchange rate — the fees matter.
If you travel internationally often or send money abroad regularly, consider opening an account with an online transfer service. They offer better rates than banks for frequent users, and some let you hold foreign currency in your account so you can exchange it whenever the rate is favorable.
Currency exchange for non-residents and immigrants
If you are not a U.S. citizen or do not have a U.S. bank account, your options are more limited. Some banks require a Social Security number or U.S. address to exchange currency. Credit unions often have stricter membership rules than banks.
Currency exchange shops do not usually require a bank account or ID beyond a passport. They are often the fastest option for non-residents who need cash in a specific currency. Bring your passport and ask about any minimum exchange amounts or fees.
Online transfer services vary in what they require. Some accept customers without a U.S. bank account if you have a passport and a way to verify your identity. Others require a U.S. address or Social Security number. Check the service's requirements before you sign up.
If you are sending money to family in another country rather than exchanging currency for yourself, a money transfer service like Western Union, MoneyGram, or a bank wire may be faster and cheaper than exchanging currency in person.
Frequently Asked Questions
Can I exchange currency at any bank branch, or only at the main office?
Large banks usually offer currency exchange at their main branch and some regional branches, but not all locations. Call ahead to confirm your nearest branch has the currency in stock or can order it. Smaller banks and credit unions may not offer currency exchange at all.
What is the difference between the mid-market rate and the rate a bank gives me?
The mid-market rate is what banks pay each other and is the most accurate rate you will see online. Banks mark up that rate by 1 to 5 percent or more when they sell currency to customers, and that markup is their profit. You will never get the mid-market rate as a customer.
Is it cheaper to exchange currency before I travel or after I arrive?
Exchange before you travel if you can. Airport exchanges charge the highest markups. If you exchange in your home country, you have time to compare rates and avoid the rush. If you must exchange at the airport, use an ATM instead of the currency exchange counter — ATM rates are usually better.
Do I need to tell my bank I am exchanging currency?
You do not need to tell your bank in advance for a normal exchange. If you are exchanging a very large amount — typically $10,000 or more — the bank may file a Currency Transaction Report with the government, which is routine and legal. This is not the same as freezing your account or reporting suspicious activity.
What if I exchange currency and then my plans change?
Most banks and exchange shops will buy back foreign currency at the rate they are currently offering, but the rate may be different from what they sold it to you for. You may lose money on the buy-back, especially if the exchange rate has moved against you. Keep your receipt and ask about the buy-back rate before you exchange.