Ruth Haines
Airports are a convenient place to exchange currency, especially if you're in a hurry or travelling to multiple countries. However, they often offer poor exchange rates and charge higher fees. It's usually better to exchange currency at a bank or local exchange office, or by using an ATM. If you have time to plan, you can order currency from your bank before you travel, or withdraw cash from an ATM when you arrive at your destination.
| Characteristics | Values |
|---|---|
| Convenience | Exchanging currency at the airport is convenient as it can be done right after landing or before boarding a flight. |
| Time-saving | Airport currency exchanges offer a wide range of currencies, eliminating the need to search for specific currencies in advance. |
| Security | Exchanging large sums of money at the airport may pose security risks as it could make individuals a target for theft. |
| Cost | Airport currency exchanges often offer poor exchange rates and charge higher fees compared to banks or local exchange offices. |
| Planning | Exchanging currency at the airport is suitable for last-minute travellers who need foreign currency immediately upon arrival. |
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What You'll Learn
- Airport currency exchange counters offer convenience but poor exchange rates
- Exchanging currency at the airport may carry security risks
- Ordering currency from your bank before travel is better than using airport exchange
- Currency exchange shops and kiosks at airports mark up exchange rates
- Local banks or credit unions offer the best rates for currency exchange
Airport currency exchange counters offer convenience but poor exchange rates
Airport currency exchange counters are convenient for travellers as they offer a wide range of currencies, quick access, and save you from having to hunt for currency exchange services in an unfamiliar city. However, they also come with poor exchange rates and higher fees compared to other options.
Currency exchange shops and kiosks in airports often charge a premium on the international spot rate to make a profit, taking advantage of travellers who need local currency right away. These higher rates can significantly reduce the amount of foreign currency you receive, especially when converting large sums of money. In addition to higher exchange rates, many airport currency exchange services also impose service fees or transaction charges, which can further erode the value of your money.
While airport currency exchange counters offer a wide range of currencies, smaller or more regional airports may have limited availability. In such cases, you might not find the specific currency you need or may have to deal with even higher rates due to limited competition among providers.
To get a better exchange rate, it is recommended to exchange currency at a local bank or bank ATM, or to order foreign currency from your bank before you travel. Major banks typically have overseas ATMs available, and many offer foreign ATM fee refunds for using a foreign ATM. If you plan to pay with your credit or debit card during your trip, be sure to check with your bank and credit card provider about any foreign transaction fees that may apply.
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Exchanging currency at the airport may carry security risks
Exchanging currency at the airport is a convenient option for many travellers. However, it may carry security risks that travellers should be aware of. Airports are busy environments, and travellers are often in a hurry. This can make it difficult to compare rates and fees between different exchange kiosks, leading to less favourable deals. As a result, travellers may accept the first offer they see, which may not be the best option available.
Additionally, exchanging a large sum of money at the airport could make you a target for theft, especially if travelling alone or in an unfamiliar location. Carrying large amounts of cash in a busy airport can also pose security risks. Therefore, it is advisable to be vigilant and aware of your surroundings when exchanging and carrying large sums of money at the airport.
To avoid these risks, it is recommended to plan ahead and order foreign currency from your bank before travelling. This allows you to secure better exchange rates and reduce stress upon arrival. Most banks allow customers to order foreign currency in person, by phone, or online, with processing typically taking three days or less. Alternatively, you can use your credit or debit card for purchases or withdraw money from ATMs abroad, although this may incur foreign transaction fees or ATM fees.
Furthermore, it is essential to understand the regulations and rules associated with holding foreign currency. In most cases, you will need to present an airline ticket or passport before obtaining foreign currency, and there may be limits to the amount you can convert. By being informed and planning ahead, travellers can minimise the security risks associated with exchanging currency at the airport and make their trip more enjoyable and stress-free.
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Ordering currency from your bank before travel is better than using airport exchange
Ordering currency from your bank before travelling is a wiser choice than using airport exchange. Here's why:
Better Exchange Rates
Airport currency exchange counters generally offer the worst exchange rates. The rates at airport kiosks are typically much less favourable than those offered by banks. For instance, if your bank offers an exchange rate of £72 per $100, an airport kiosk may offer you only £67 per $100, resulting in a significant loss for you. Ordering currency from your bank allows you to lock in a more favourable exchange rate before your trip and avoid the high fees and poor rates at airports.
Convenience and Peace of Mind
Ordering currency in advance gives you peace of mind and convenience. You'll have cash on hand for immediate expenses, such as taxis and tips, and you can avoid potentially long airport lines when exchanging currency upon arrival. Additionally, you won't have to worry about finding ATMs or foreign banks in an unfamiliar place, and you can familiarise yourself with the local currency before your trip.
Lower Fees
Airport currency exchanges are often the most expensive way to obtain foreign currency. Even with processing fees, ordering from your bank usually saves money compared to exchanging cash at the airport. Banks may charge a small fee for foreign currency transactions, but these fees are often lower than the fees and poor exchange rates at airport kiosks.
Security and Authenticity
Ordering from your bank ensures the authenticity of the currency and guarantees you receive the best, legal rate. Airport exchanges may not always provide the same level of security and rate assurance.
Combined Approach
A combined approach can be beneficial. Order enough cash from your bank to cover your initial expenses, and then use a credit card with no foreign transaction fees for larger purchases during your trip. This way, you have immediate cash upon arrival, and you can make the most of your trip budget by avoiding foreign transaction fees.
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Currency exchange shops and kiosks at airports mark up exchange rates
Currency exchange kiosks and shops at airports are convenient, but they are not the best places to exchange money. These vendors know that travellers who have just got off a plane probably need money right away, so they mark up exchange rates to make a profit. As a result, you will likely get a poor deal at the airport.
For instance, if your bank offered you an exchange rate of £72 per $100, the airport kiosk may give you only £67 per $100. This means that you will get less foreign currency for your money.
If you can, it is better to plan ahead and order foreign currency from your bank before you travel. You can generally access the currency exchange webpage through your bank's website or mobile app, or by phone. While you can generally expect a solid exchange rate, use a trusted source such as Reuters or the International Monetary Fund to find current exchange rates and ensure you get a fair deal. Additionally, understand all the fees involved. For example, Citi charges a $5 service fee for transactions under $1,000, though it’s waived for premium accounts. Bank of America’s standard shipping costs $7.50, but overnight shipping is $20. Sometimes you can avoid shipping fees by opting to pick up the cash at a local branch or by being a loyal customer.
If it is too late to order foreign currency from your bank, you can use an ATM when you arrive at your destination. Many foreign banks are happy to exchange your dollars for local currency for a better rate than you find elsewhere. Many U.S. banks offer foreign ATM fee refunds and charge no fees for using a foreign ATM, so you can withdraw cash with your debit card, receiving the best rate for your dollars.
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Local banks or credit unions offer the best rates for currency exchange
When it comes to exchanging currency, it is generally recommended that you do so at your local bank or credit union, rather than at the airport. Airport currency exchange kiosks or counters generally offer the worst exchange rates and high fees, so they should be avoided if possible.
Local banks and credit unions usually offer the best rates for currency exchange. Major banks, such as Chase or Bank of America, often either have ATMs overseas or allow you to use their cards with no foreign transaction fees. However, not all banks or credit unions exchange foreign currency, and even if they do, your nearest branch may only have certain types of currency available or limited amounts. It is always a good idea to call your bank's customer service to see if your location has the type of currency you need and to inquire about any potential fees.
Exchanging currency before your trip will help you get the best rate. You can do this at your bank or credit union branch, over the phone, or online. Many banks offer currency exchange to their customers, and your bank or credit union will almost always be the cheapest place to exchange currency. You may be able to order currency at a branch location, by phone, mobile app, or online, and have it delivered to you or ready for pickup at a branch.
If you are unable to exchange currency at your bank or credit union, or if you are travelling on short notice, you may have to exchange currency at the airport. While this may be convenient, you will likely pay a higher cost for the exchange.
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Frequently asked questions
Yes, you can buy currency at the airport. Currency exchange kiosks and shops are a common amenity at most airports.
Buying currency at the airport is convenient and saves time. You can exchange your money right after landing or before boarding your flight, and you won't have to look for currency exchange services in an unfamiliar city. Airport exchange counters also typically offer a wide range of currencies, which is useful if you're travelling to multiple countries or less common destinations.
Airport currency exchanges usually offer poor exchange rates and higher fees compared to banks or local exchange offices. They often charge a premium on the international spot rate to make a profit, knowing that travellers who have just got off a plane need money right away.
You can order foreign currency from your bank before you travel, or use a local ATM or bank when you arrive at your destination. Major banks usually have branches abroad or partner with other banks to create a network, so using those ATMs often provides a decent exchange rate and eliminates out-of-network ATM fees.
It's a good idea to shop around for a reasonable rate and understand all the fees involved. You can use a trusted source such as Reuters or the International Monetary Fund to find current exchange rates and ensure you get a fair deal.
