Airports Accepting Us Dollars: A Traveler's Guide

When travelling internationally, one of the most important things to consider is exchanging your money. While many people think that they can only exchange currency at banks, it is possible to do so at the airport. Airport currency exchange services are convenient, but they are usually one of the most expensive places to buy foreign currency, with poor exchange rates and high fees. However, this convenience may be beneficial for those who don't have time to exchange currency before arriving at the airport.

Currency exchange services at airports are convenient but often expensive

Currency exchange services at airports are convenient, but they are often one of the most expensive places to exchange currency. Airport currency exchange kiosks serve a captive market, so there is little competition, which can result in poor exchange rates and high fees. These fees may be upfront or hidden within the offered exchange rates.

However, exchanging currency at the airport is not always the worst option. For instance, if you are travelling internationally from a major airport in New York City, Los Angeles, Atlanta, or Denver, you may not have time to join what are likely to be long queues at your bank. In such cases, exchanging currency at the airport guarantees that foreign currency will be available to you.

If you want to avoid the high fees associated with airport currency exchange services, it is best to plan ahead and exchange your currency before your trip. You can do this at your regular bank or credit union, or by ordering your foreign currency online for collection or delivery. If you are in the US, Bank of America and Wells Fargo are examples of banks that offer these services. Alternatively, you can use a specialist foreign exchange service, such as Travelex, to order your currency online and have it delivered to your home address or a nearby branch for collection.

If you are unable to exchange your currency before your trip, you can also get foreign currency once you arrive at your destination. Withdrawing local cash from an ATM is a good option, as many banks offer fee-free ATM withdrawals to their customers as they travel. Credit cards are another option, as many do not charge an extra foreign exchange fee, and you will get your bank's rate.

It's recommended to compare exchange rates and fees before choosing a currency exchange service

When exchanging currency, it is important to be aware of the various fees and rates that providers apply. Currency exchange services rarely offer free transactions, and the fees can add up quickly, so it is worth doing your research in advance to avoid paying more than necessary.

Commission Fees

Many currency exchange services charge a commission fee, typically either a percentage of the transaction or a flat rate. For example, banks may charge a 1-3% commission on foreign currency exchanges.

Service Fees

Service fees are common in airport exchange booths and tourist-heavy locations, where convenience drives up the price. These fees cover handling and administrative costs.

Foreign Transaction Fees

If you are withdrawing currency from a foreign ATM or making purchases with a credit card abroad, you will likely incur foreign transaction fees, typically around 1-3%.

Minimum Fees

Certain providers impose minimum fees, which can disproportionately affect those exchanging small amounts of currency.

Conversion Fees

When exchanging non-local currency for another foreign currency, fees can be higher due to double conversion charges.

Exchange Rates

The exchange rate is the value of one currency relative to another. For example, if the exchange rate for the US dollar (USD) to the euro (EUR) is 1.10, $1 is worth €1.10.

The spread is the difference between the buy rate and the sell rate. Banks and exchange providers apply this spread to generate profit. Understanding the spread can help you identify whether you are getting a fair rate or being overcharged.

Inflation, interest rates, and geopolitical events can influence exchange rates. For instance, if US interest rates rise, the dollar might strengthen, resulting in a lower spread when exchanging dollars for foreign currency. Knowing how these factors affect exchange rates can help you make strategic currency decisions and avoid hidden costs.

Comparing Exchange Rates and Fees

When planning your currency exchange, it is advisable to research rates and fees in advance. This will help you understand the approximate amount you will receive and allow you to compare different providers to find the most cost-effective option.

Major banks often post their exchange rates online, making it easy to compare rates and identify the best deal. Online currency exchange services have gained popularity for offering competitive rates and low fees. Platforms like Wise (formerly TransferWise), OFX, and Revolut often provide better rates than banks or airport kiosks, with lower or no fees due to the absence of physical exchange booths.

Additionally, currency exchange offices in urban financial hubs like New York City, Chicago, or Los Angeles often provide better rates than those in tourist-focused locations.

In summary, by understanding the various fees and how exchange rates work, you can make informed decisions when choosing a currency exchange service. Comparing rates and fees in advance will help you secure the best deal and minimize unnecessary costs.

Exchanging currency at a bank is an option, but it's important to check their processes

Banks generally provide competitive exchange rates and transparent fees, making them one of the best options for exchanging money. Many banks offer favourable rates to account holders, and some even provide better rates if you order currency in advance. If you have an account with a major bank, they may also offer international ATM withdrawals with minimal or no fees, allowing you to access foreign currency at your destination.

Compared to other options, such as airport kiosks, banks tend to have more secure exchange processes. They can help you avoid the high fees and unfavourable exchange rates common at exchange booths. However, it's worth noting that exchanging currency at a bank may take more time and planning than other methods.

Using a specialist foreign exchange service is another option, but there may be delivery and service fees

When it comes to exchanging currency, using a specialist foreign exchange service is a good option. Services like Travelex offer online ordering and home delivery, or collection from one of their many locations. However, there are a few things to keep in mind.

First, you'll need to have someone available to sign for the delivery. Second, there may be a service fee for smaller orders. For example, Travelex charges a service fee for orders under $1,000.

It's also important to compare the fees and charges of different providers. Banks and foreign exchange services often add a markup to the exchange rate, so it's worth checking for any exchange rate markups before choosing a service.

In addition to specialist foreign exchange services, you can also exchange currency at your bank or credit union. Some banks allow you to order foreign currency online for collection or delivery, while others may require you to visit a financial centre to place your order.

When deciding where to exchange your currency, it's crucial to consider the exchange rates and fees offered by different providers. Airport currency exchange services, for example, often have poor exchange rates and high fees, which can make them an expensive option.

By comparing rates and fees, you can find the best deal and make the most of your money when travelling internationally.

It's possible to exchange currency at your destination, but it's worth checking international withdrawal fees

It's always a good idea to have some local currency in your wallet when travelling abroad. While some vendors and merchants may accept US dollars, it's not guaranteed, and you don't want to be caught out.

Exchanging currency at your destination is possible, but it's worth doing your research first. Airport currency exchanges are convenient, but they often offer poor exchange rates and add various hidden fees. It's best to avoid these if possible.

Instead, you could try a local bank or a bank ATM to make your exchanges. Many foreign banks are happy to exchange your dollars for a competitive rate. Plus, if you use your bank card at an ATM, you may be able to avoid transaction fees. However, it's worth checking with your bank about international withdrawal fees and daily limits before you go, as these can vary.

If you're a frequent international traveller, you might want to consider using an international banking app, such as Wise (formerly TransferWise) or Revolut. These apps allow you to hold multiple currencies and transfer money between accounts in different countries.

Frequently asked questions