Airport Currency Exchange: How Does It Work?

Currency exchange shops and kiosks in airports are convenient, but they often offer poor exchange rates. Airport currency exchange shops know that you might need local currency to get to your destination, so they make big profits by offering you the worst exchange rate. To get the best rates, try a local bank or a bank ATM to make your currency exchanges.

Airport currency exchange rates are often poor

If you exchange your money at a currency exchange, you'll pay a premium on the international spot rate, as that's how the store makes a profit. The international spot rate is a daily value established by a group of banks that trade currencies.

If you exchange your money through a bank or by withdrawing the local currency from an ATM, you'll likely come out ahead, even if there are ATM or credit card fees. It's a good idea to check to see if your bank offers foreign ATM fee refunds for using a foreign ATM.

If you don't have time to get cash at the bank before your trip, it can be tempting to get foreign currency at an airport kiosk or currency exchange counter. However, their exchange rates are typically much less favourable than your bank at home.

You can get a better rate at a local bank or ATM

Currency exchange shops and kiosks in airports are not the best places to exchange money. You can get a better rate at a local bank or ATM.

If you exchange your money at a currency exchange, you'll pay a premium on the international spot rate, as that's how the store makes a profit. If you exchange your money through a bank or by withdrawing the local currency from an ATM, you'll likely come out ahead, even if there are ATM or credit card fees.

Airport-based currency exchange shops know that you might need local currency to catch a bus, train, or taxi, so they make big profits by offering you the worst exchange rate. Avoid these currency exchanges if possible by getting currency in advance from a local bank or going to an in-airport bank or ATM.

Before your trip, determine how much cash you might need and visit the local branch of your bank. They will typically have common foreign currency on hand, and the fees you’ll pay will be much less than those charged by airport currency exchange outfits.

You can also use your debit card to access cash from the airport ATM. You’ll receive the bank’s exchange rate instead of the airport’s extra fees.

Exchange rates vary day-to-day

Exchange rates vary from day to day and are determined by the international spot rate, which is a daily value established by a group of banks that trade currencies. This means that the rate you get at the airport currency exchange today may not be the same as the rate you get tomorrow.

The airport currency exchange rate isn't always the best. Airport-based currency exchange shops know that you might need local currency to catch a bus, train, or taxi, so they make big profits by offering you a poor exchange rate.

If you exchange your money at a currency exchange, you'll pay a premium on the international spot rate, as that's how the store makes a profit. If you exchange your money through a bank or by withdrawing the local currency from an ATM, you'll likely get a better rate, even if there are ATM or credit card fees.

To get the best rates, try a local bank or a bank ATM to make your currency exchanges. Check to see if your bank offers foreign ATM fee refunds for using a foreign ATM.

Airport kiosks offer convenience, but poor rates

Currency exchange kiosks at airports are convenient, but they offer poor rates. Airport currency exchange shops know that you might need local currency to catch a bus, train or taxi, so they make big profits by offering you the worst exchange rate.

If you exchange your money at a currency exchange, you'll pay a premium on the international spot rate, as that's how the store makes a profit. The value of one currency relative to another is determined by the international spot rate, which is a daily value established by a group of banks that trade currencies. Not all currency exchanges charge the same rate, so it is advisable to shop around for a reasonable rate.

To get the best rates, try a local bank or a bank ATM to make your currency exchanges. If you don't have time to get cash at the bank before your trip, it can be tempting to get foreign currency at an airport kiosk or currency exchange counter. However, their exchange rates are typically much less favourable than your bank at home.

You can also use your debit card to access cash from the airport ATM. You'll receive the bank's exchange rate instead of the airport's extra fees.

You can use your credit card to avoid fees

Currency exchange shops and kiosks in airports are not the best places to exchange money. This is because they know that you might need local currency to get to your destination, so they make big profits by offering you the worst exchange rate.

However, you can use your credit card to avoid fees. Many travel credit cards offer the benefit of no foreign transaction fees, and you can also earn points for the money that you spend on your international vacation.

If you don't have time to get cash at the bank before your trip, it can be tempting to get foreign currency at an airport kiosk or currency exchange counter. However, these merchants offer convenience at the cost of less favourable exchange rates than your bank at home.

To avoid these fees, you can use your credit card to make purchases directly, or withdraw cash from an ATM at the airport. You'll receive the bank's exchange rate instead of the airport's extra fees.

Frequently asked questions