Airports Exchange Rates: Good Or Bad Deal?

Airports are a convenient place to exchange currency, but they rarely offer good exchange rates. Currency exchange kiosks at airports tend to charge high commission and transaction fees, and their exchange rates can be up to 15% worse than the standard bank rate. They rely on travellers needing quick access to local currency and are able to push up prices as a result.

There are better options for exchanging money. Using a credit or debit card is a popular method, as banks tend to use the current exchange rate and often waive foreign currency and transaction fees. Withdrawing cash from a local ATM is another good option, as ATMs use the current bank rate and don't usually charge high fees.

Why airport exchange rates are bad

Airport currency exchange rates are often bad because they know travellers may need local currency as soon as they arrive in a new country. Airports take advantage of tourists by offering unfavourable exchange rates and high commission fees.

High Commission Fees

Currency exchange shops and kiosks in airports charge high commission fees, ranging from $5 to $15. These fees are usually disguised as "0% commission" or "zero fees", but in reality, the exchange rate has been marked up, and the difference is pocketed by the business.

Bad Exchange Rates

Airport exchange rates are typically seven to 15% worse than the standard bank rate. This is because airports are a captive market—desperate tourists need foreign currency fast, so they can afford to push up prices.

Better Alternatives

It is recommended to get currency in advance from a local bank or to use an ATM or bank at your destination. Credit cards that offer no foreign transaction fees are also a good option, as they provide fair exchange rates and no conversion fees.

Shop Around

It is important to shop around for the best exchange rate, as rates can vary from place to place. Using a currency converter app can help you determine whether you are getting a good deal.

Plan Ahead

By planning ahead and ordering foreign currency in advance, you can avoid the unfavourable rates and fees associated with airport currency exchanges. Ordering currency online or from your bank a few days before you travel will ensure you get a better rate and have one less thing to worry about before your trip.

How to get a good exchange rate

Know the Currency Exchange Rate

Before you leave the country, look up the exchange rate. Being informed is the first step in getting a good rate. It will prevent you from exchanging money at a very unfavourable rate. You can use a currency app like XE Currency to check the live currency exchange rates.

Use a Credit Card with No Foreign Transaction Fees

If you have a credit card with no foreign transaction fees, use it whenever possible. If you don’t have one, consider getting one if you travel frequently. In the U.S., there are many such options. However, keep in mind that some credit card companies charge fees for transactions made in foreign currencies, especially if you’re based outside of the U.S.

Use a Debit Card with Low or No Foreign Transaction Fees and No ATM Fees

When using your debit card to withdraw money from ATMs, you may have to pay additional fees, including currency exchange fees, a fee from the local bank’s ATM, and a fee from your bank for using an ATM abroad. In the U.S., UK, and many countries in mainland Europe, you can generally find some debit cards that waive most or all of these fees.

Pay for Purchases in the Local Currency

Many merchants now offer to charge your card in your home currency. However, they often add fees to the already poor exchange rate. At the pay terminal, always choose to pay in the local currency and allow your credit card company to convert at a better exchange rate.

Avoid Airport Exchange Rate Kiosks

Currency exchange shops and kiosks in airports are not the best places to exchange money. They may promise “zero commission,” but in return, they offer a poor exchange rate. Even though their airport location is convenient, you pay a very high price for this ‘convenience’ – a price that can be as high as 15%.

Use an ATM

ATMs use the current bank rate and give you the best deal. If you have a card that works abroad, consider simply withdrawing money from a foreign ATM as if you were still in your home country. However, do tell your bank you’re going abroad so they’re not surprised to see foreign activity on your card.

The best places to exchange money

Exchanging money at the airport is convenient, but it's unlikely to be the best option financially. Currency exchange kiosks at airports tend to offer poor exchange rates and high fees, knowing that travellers may be desperate for local currency.

Local Banks and ATMs

The best place to exchange money is usually a local bank or ATM. Many foreign banks are happy to exchange currency for a better rate than kiosks, or you can withdraw cash from an ATM. Local banks and credit unions usually offer the best rates, and you can also check if your bank has overseas ATMs or banking affiliates.

Credit and Debit Cards

Using a credit or debit card is a popular method for spending money overseas. Banks use the current exchange rate, and many waive foreign currency and transaction fees. It's worth checking which cards have the best offers, and picking one with no foreign transaction or ATM fees can save you money.

However, be aware that some countries, especially less developed ones, may be more cash-based and might not accept card payments everywhere. Also, be wary of businesses that offer to charge your card in your home currency, as this will include a markup. Always opt to pay in the local currency.

Order Currency in Advance

If you order foreign cash online, it will likely include delivery charges, and the exchange rate won't be as good as with your bank. However, this is still a better option than exchanging money at the airport.

Currency Exchange Services

If you want to use a currency exchange service, it's better to find one in the city you're visiting, rather than at the airport. Pick a location that isn't tourist-heavy, as popular tourist areas tend to offer higher fees and worse exchange rates.

Hotel Currency Exchange

If you're staying at a large hotel, it might offer its own currency exchange service, which can be convenient. However, make sure they're offering a decent exchange rate.

Prepaid Travel Cards

You can load foreign currency onto a prepaid travel card, although these typically carry an annual fee and a fee to purchase.

Send Money in Advance

If you have a trusted contact at your destination, you could send them money in advance through a money transfer service, and then withdraw it from an ATM when you arrive.

Use an ATM at the Airport

If you need cash immediately when you arrive, using an ATM at the airport might give you a better deal than a currency exchange kiosk.

The worst places to exchange money

Airport kiosks and stores

Airport currency exchange kiosks and stores are widely regarded as one of the worst places to exchange money. They tend to charge some of the highest fees and offer the worst exchange rates. This is because they know travellers may be in a rush and have limited options for exchanging currency, so they take advantage of the situation.

Hotels and tourist areas

Hotels and tourist-centric areas may provide convenience, but they generally charge higher fees for currency exchange. Locations such as Paris, Orlando, and Rome cater to tourists who may prioritise convenience over cost-effectiveness.

Remote locations

In remote or less frequented destinations, currency exchange options may be limited, and providers may take advantage of the lack of competition by charging higher fees. It may also be more administratively burdensome to replenish and monitor these sites, so entities may charge higher fees in return.

Traveller's checks and prepaid debit cards

Traveller's checks and prepaid debit cards are not efficient and often carry various transaction fees. They add little benefit in terms of security when compared with cash. Prepaid debit cards also come with card fees, foreign transaction costs, and ATM-use charges.

Currency exchange stores

Once you get out of the airport, you may find yourself in a market, bazaar or popular tourist area. Exchange shops try to operate where you will need them and take advantage of tourists to make a profit. You will probably find better rates than the airport at a dedicated currency exchange, but you’re still likely to get a bad deal.

How to exchange money in advance

Exchanging money at the airport is not a good idea. Currency exchange kiosks at airports tend to have poor exchange rates and higher fees, taking advantage of travellers who need quick cash.

Exchange Money with Your Bank

Call ahead and order foreign currency from your bank. You can usually pick it up within a couple of days, or they may even deliver it to you. The exchange rate will be much better than at the airport, although you might still have to pay a fee.

Use an ATM

Using an ATM at your destination is a good way to get foreign currency. Many U.S. banks have global ATM networks, so you can withdraw money with minimal fees if you use ATMs associated with their partner banks. However, check with your bank first to understand what fees may apply to international withdrawals.

Prepaid Travel Cards

Prepaid travel cards allow you to load multiple currencies before you travel and lock in exchange rates. They can be used like regular debit or credit cards but with the added benefit of lower foreign transaction fees. Be aware of hidden fees such as inactivity, ATM withdrawal, or reloading fees.

Credit Cards with No Foreign Transaction Fees

Using a credit card that doesn't charge foreign transaction fees can be a great asset when travelling internationally. These cards often offer competitive exchange rates, and some even provide travel rewards or cashback on purchases made abroad.

Send Money Ahead

If you want to make currency conversion easy, you can send money to a Western Union location near where you'll be staying. When you arrive, you can pick up the money in the local currency.

International Banking Apps

If you travel frequently, consider using an international banking app such as Wise, Revolut, or others to manage your money. These apps make it easier to hold multiple currencies and transfer money to accounts in different countries.

Plan Ahead

Research your destination's currency and exchange rate options. The more notice you give your bank, the more likely they will be able to provide you with the foreign currency you need.

Frequently asked questions