The cheapest ways to exchange currency for travel are ordering cash through your own bank or credit union before the trip and withdrawing local currency from an in-network bank ATM once you arrive, each costing roughly 1 to 3 percent above the mid-market rate. The airport kiosk, the hotel desk, and the colorful exchange booth in the tourist district are the most expensive options, routinely adding 10 to 15 percent or more to the cost of every note you receive.
This article is general financial information and is not financial advice. Exchange rates, bank policies, and fee structures change frequently. Check current terms with your bank or financial provider before making decisions about currency exchange.
Currency exchange is one of those travel costs that most people underestimate because the fee is hidden in the rate rather than printed on a receipt. A kiosk that advertises "no commission" is usually just baking the commission into a poor exchange rate. To understand why that matters, it helps to know what the mid-market rate is and how to use it as a benchmark. Our guide to how exchange rates work covers that in full, but the short version is this: the mid-market rate is the real rate shown on Google or in the Gizmoop Currency Converter below, and anything offered to you as a consumer will be slightly worse than that rate. The question is how much worse.
Comparison of exchange methods by typical cost
Not all exchange methods are equally expensive. The table below shows the six main ways travelers exchange currency, their typical all-in cost relative to the mid-market rate, and who each method suits best.
| Method | Typical cost | Best for |
|---|---|---|
| Bank or credit union before travel | 0 to 3% above mid-market; some banks no fee | Travelers with a fee-free bank account who plan ahead |
| In-network bank ATM abroad | 1 to 3% above mid-market plus possible ATM fee | Most international travelers; best everyday option once abroad |
| No-foreign-transaction-fee credit card | 0 to 1% above mid-market; no added fee | Card purchases at shops, restaurants, and hotels abroad |
| Multi-currency app (e.g. Wise) | ~0.4 to 1.5% fee; mid-market rate used | Sending money abroad or loading a travel card in advance |
| Airport or hotel exchange kiosk | 8 to 15% above mid-market; often extra commission | Emergency small amounts only; avoid for large sums |
| Tourist-area exchange shop | 5 to 12% above mid-market; rates vary widely | Avoid; use only if no ATM or bank is accessible |
The gap between the cheapest and most expensive options is significant. On a $2,000 trip budget, paying 12 percent at an airport kiosk costs $240 in exchange fees. Paying 2 percent at an in-network ATM costs $40. That $200 difference buys two nights in a mid-range hotel or a week of local meals. The exchange method you choose is a real travel expense.
Before the trip: ordering currency from your bank
If you know you will need cash in a foreign currency before you leave home, your bank or credit union is usually the best place to get it. Several large US banks, including Bank of America and Citibank, allow account holders to order foreign currency online or at a branch with no exchange fee, delivering it to a branch or to your home. The rate will be a small amount worse than the mid-market rate, as with any consumer transaction, but the total cost is far lower than what you will find at the airport.
Order a few days in advance since delivery to a branch may take two to five business days. Order only what you genuinely need in cash, since converting unused foreign notes back to your home currency on return means paying the spread twice. A modest amount of cash for immediate arrival needs, like a taxi, bus, or first meal, is plenty. You can get more from a local ATM once you arrive.
Credit unions often offer especially competitive rates on foreign currency orders for members. If you belong to one, check their rates before going to a larger bank.
After you arrive: the in-network ATM
For most travelers, the best everyday strategy abroad is to withdraw local currency from an ATM operated by a major local bank. The ATM will pull from your home account at a rate close to the mid-market rate, and the total cost is usually 1 to 3 percent, made up of a small currency conversion margin and possibly a small fixed ATM fee.
A few things to keep in mind. Many US checking accounts charge a foreign ATM fee of $3 to $5 per withdrawal. To minimize this, withdraw larger amounts less often rather than small amounts daily. Some accounts, including accounts with Charles Schwab Bank and certain online banks, refund all ATM fees worldwide, which makes them excellent travel accounts. Check whether your bank has partner banks abroad that waive fees entirely.
Always use ATMs attached to or inside a bank branch rather than freestanding machines in tourist areas or convenience stores. The freestanding machines are more likely to charge high fees or use poor conversion rates.
Using cards abroad
A credit card with no foreign transaction fee is one of the cheapest ways to pay for purchases abroad. The card network (Visa or Mastercard) converts at a rate very close to the mid-market rate, and with no foreign transaction fee, the total cost is often less than 1 percent. Cards in the Visa and Mastercard networks are widely accepted in most countries, though cash is still essential in smaller towns, markets, and local restaurants.
Before you travel, check your card's foreign transaction fee. Many travel rewards cards charge no foreign transaction fee as a standard feature. If your current card charges 3 percent on foreign transactions, even a basic travel card with a no-fee policy will save money on a trip of any length.
Notify your card issuer before you travel. Most banks now detect foreign transactions automatically without a travel notice, but a quick call or app notification takes two minutes and prevents the inconvenience of a blocked card abroad.
The dynamic currency conversion trap
Dynamic currency conversion (DCC) is one of the most commonly overlooked travel expenses. It happens when a card terminal or ATM offers to convert your foreign purchase into your home currency on the spot. The terminal might say something like "Would you like to pay in US dollars or euros?" or show you the amount in your home currency and ask you to confirm. It sounds convenient. It is not a good deal.
When you accept DCC, the conversion rate is set by the merchant or ATM operator, not by your card network. These rates are consistently and significantly worse than the rate your bank would apply. Independent tests have found DCC markups of 3 to 12 percent above the mid-market rate. Your card's standard foreign transaction handling, even with a modest foreign transaction fee, is almost always cheaper.
The rule is simple: always choose to pay in the local currency. If you are in France, pay in euros. If you are in Japan, pay in yen. Decline any offer to pay in your home currency. If an ATM abroad defaults to showing you an amount in your home currency, look for the option to cancel and withdraw in local currency instead.
The mid-market rate: your benchmark for every exchange
Every time you exchange currency, whether at a bank, an ATM, a kiosk, or through an app, you should compare the rate you are being offered against the mid-market rate. The mid-market rate is the real exchange rate between two currencies, the midpoint between the buy and sell prices on the global market. It is the rate shown on Google, XE.com, and the Gizmoop Currency Converter. No consumer exchange will give you exactly the mid-market rate, because providers charge a spread or fee to make a profit. But the mid-market rate tells you what a fair deal looks like.
If you are about to exchange $1,000 and the mid-market rate for USD to EUR is 0.92, you should expect to receive somewhere around 890 to 907 euros through a competitive channel. If a kiosk offers you 820 euros, the gap is your cost: $97 on a $1,000 exchange. That gap is the reason to check the rate before you commit. For a deeper explanation of how exchange rates are set and why they move, see our guide to how exchange rates work.
How much fees really cost on a sample trip
To make the numbers concrete, consider a traveler exchanging $2,500 total over the course of a two-week trip to Europe. Here is what each method would actually cost in fees, assuming the mid-market rate for USD to EUR is 0.92.
- Bank or credit union, no fee: $2,500 exchanged at mid-market gives approximately 2,300 euros. Total fee: $0 to $25.
- In-network ATM abroad at 2 percent: Approximately 2,254 euros received. Fee equivalent: about $50.
- No-foreign-transaction-fee credit card at 0.5 percent:Approximately 2,288 euros of value received on purchases. Fee equivalent: about $12.
- Wise at 1 percent fee: Approximately 2,277 euros received. Fee equivalent: about $25.
- Airport kiosk at 12 percent above mid-market: Approximately 2,024 euros received. Fee equivalent: about $300.
- Tourist-area exchange shop at 8 percent: Approximately 2,116 euros received. Fee equivalent: about $184.
The difference between the cheapest option (your bank, no fee) and the most expensive (airport kiosk at 12 percent) is around $275 to $300 on a $2,500 exchange. Over a longer trip or a larger exchange amount, the gap grows proportionally. Choosing the right exchange method is one of the highest-value decisions you make before a trip.
Multi-currency apps: Wise and similar services
Services like Wise (formerly TransferWise) have made international money movement considerably cheaper over the past decade. Wise converts at the mid-market rate and charges a transparent percentage fee, typically starting around 0.4 percent for major currency pairs and rising for smaller or more complex pairs. For sending money abroad, Wise is consistently among the cheapest options available.
Wise also offers a multi-currency account and a debit card that can be used to spend in local currency abroad. Funds loaded to the Wise account are converted at the mid-market rate when you top up, and the card spends from the appropriate currency balance. For frequent travelers, this can be a convenient and cost-effective setup. The main consideration is that Wise works best when planned in advance; it is not an option if you need cash in five minutes at an airport.
Other multi-currency services including Revolut and Starling (for UK travelers) operate on similar models. Compare the fee structure for your specific currency pair and exchange amount, since the cheapest service varies by corridor.
What to avoid
A few exchange scenarios are reliably expensive and worth avoiding in almost all circumstances:
- Airport exchange kiosks near departure gates. These are positioned where travelers are captive and often desperate for cash. The rates reflect that. Exchange only tiny amounts at the airport if you truly cannot avoid it.
- Hotel currency exchange desks. Hotels provide this as a convenience, not as a financial service. The rate is almost always poor.
- Dynamic currency conversion at card terminals and ATMs. As described above, always pay in local currency.
- Exchange booths in high-tourist areas. Rates in these locations vary widely and are often negotiated, which means travelers who do not know the going rate pay more. If you must use one, check the mid-market rate first and compare two or three booths.
- Exchanging unused foreign currency back at the airport. You pay the spread going in and again going out. Plan your cash needs to minimize leftover foreign notes.