Roberta Aguirre
Exchanging currency at the airport is a convenient option when travelling, but it can also be expensive. Currency exchange kiosks at airports often offer poor exchange rates and high fees, which can reduce the amount of money you have to spend on your trip. It is recommended to compare rates online or check the rate on Google before exchanging currency at the airport, as you may get a better deal elsewhere. Additionally, using a credit or debit card, or a specialist travel money card, can be a more convenient and cost-effective option when travelling. However, if you do have leftover foreign currency, you can exchange it back at the airport, spend it there, or save it for your next trip.
| Characteristics | Values |
|---|---|
| Convenience | Currency exchange at the airport is convenient, especially if you haven't exchanged money before your trip. |
| Expense | Airport currency exchange kiosks often have poor exchange rates and high fees, making it an expensive option. |
| Alternatives | Using cards (credit, debit, or specialist travel money cards) or withdrawing money from ATMs at the airport can be more cost-effective. |
| Pre-ordering | Some airport currency exchange services allow you to pre-order currency 48 hours or a few days in advance. |
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What You'll Learn
Airport currency exchange services are convenient but expensive
Airport currency exchange services are convenient but can be expensive. While it is possible to exchange currency at the airport, the exchange rates are often poor, and there may be high fees, which can be upfront or hidden in the exchange rate. This can result in you losing money.
If you are travelling at short notice and need to exchange currency, it may be worth using an airport currency exchange service for the sake of convenience. However, if you are able to plan ahead, it is recommended that you avoid airport kiosks and exchange your currency before you travel.
There are several ways to do this. You can visit your bank or credit union before you leave and exchange your dollars for the currency of your destination. Many major US banks offer foreign currency without charging an additional fee beyond the exchange rate. Alternatively, you can order currency online or by phone to be delivered to your home. If you have friends or family with a local bank account in the country you are travelling to, you could send them money from your US account and then withdraw it from a fee-free ATM when you arrive.
Using a credit or debit card can also be a convenient option when travelling, although your bank may charge foreign transaction fees of up to 3% on every purchase.
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Compare rates using an online currency converter
When it comes to exchanging currency at the airport, it's important to be aware that airport currency exchange kiosks often offer poor exchange rates and high fees, resulting in higher costs for travellers. To make sure you're getting a fair deal, it's a good idea to compare rates using an online currency converter before you arrive at the airport.
Online currency converters, such as the ones provided by Wise and Xe, allow you to check the mid-market exchange rate, which is the rate banks use to trade currencies on global markets. By comparing the mid-market rate to the rates offered by different providers, you can see how much of a markup each provider is adding as a fee. This helps you understand the true cost of your currency exchange and make an informed decision about where to exchange your money.
For example, let's say you want to exchange US dollars to euros. By using an online currency converter, you can see that the mid-market exchange rate for 1 USD to EUR is 0.80. However, when you go to the airport currency exchange kiosk, they offer you a rate of 0.75 USD to EUR. This means that for every dollar you exchange, you're paying an additional fee of 0.05 EUR, which can add up quickly.
In addition to comparing rates, online currency converters offer other benefits. For example, some converters allow you to set rate alerts, so you can take advantage of favourable exchange rates when they occur. You can also use these tools to analyse rate trends over time, helping you make a more informed decision about when to exchange your currency. By comparing rates and considering your options in advance, you can avoid the high fees and poor exchange rates often associated with airport currency exchange services.
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Avoid airport kiosks and other exchange counters
Airport currency exchange kiosks are convenient, but they are usually one of the most expensive places to buy foreign currency. They serve a captive market, so there is little competition, resulting in poor exchange rates and high fees. These fees may be upfront or hidden within the exchange rates.
For example, if your bank offered an exchange rate of £72 per $100, an airport kiosk may only give you £67 per $100, costing you extra money. Exchanging at your bank would leave you with an additional £5.
To avoid unfair fees, it is recommended to exchange currency before travelling. Most major US banks will exchange currency without charging an additional fee beyond the exchange rate. For instance, Wells Fargo offers 70 currencies for over 100 countries, and Bank of America exchanges currencies for more than 100 countries. You can obtain foreign currency in cash at your local bank branch or order it online or by phone for delivery. If you have a friend or family member with a local bank account in your destination country, you could send them money from your US account and withdraw it from fee-free ATMs when you arrive. This will often get you the mid-market exchange rate, which is the rate banks use to trade currency on global markets but rarely offer to retail customers.
If you are unable to exchange currency before your trip, it is still not advisable to use airport kiosks. Instead, you can use a credit, debit, or specialist travel money card to pay for things during your vacation. You can also rely on cards for most purchases and withdraw cash from ATMs as needed.
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Withdraw money from a local bank account
When travelling, it is generally advisable to avoid exchanging currency at the airport kiosks, as they tend to offer poor exchange rates and high fees, which can lead to unnecessary costs.
If you need to withdraw money from a local bank account at the airport, it is recommended to use a bank ATM, if available. However, it is important to be cautious of potential fees and unfavourable exchange rates. Here are some tips to consider when withdrawing money from a local bank account at the airport:
- Inform your bank about your travel plans, including the countries you will be visiting and the dates of your trip. Many banks now block foreign transactions as a security measure if they are not notified in advance.
- Be aware of potential fees: Using an out-of-network ATM may result in charges from your bank, such as a foreign transaction fee or a cash advance fee if using a credit card.
- Decline the conversion offer: If given the option, decline the offer to convert the transaction to your home currency. The conversion rate offered by the ATM may be unfavourable and result in higher costs. Instead, choose to be charged in the local currency and let your home bank handle the conversion.
- Compare exchange rates: Exchange rates at airport ATMs tend to be less favourable than those offered by local banks in the area you are visiting. If possible, research and compare the exchange rates offered by different banks or ATMs before making a withdrawal.
- Use a credit card for ATM withdrawals: In some cases, using a credit card for ATM withdrawals can result in more favourable rates or fees compared to a debit card. Consider carrying an extra credit card specifically for cash withdrawals, ensuring that it has no daily interest accrual on withdrawals and does not incur interest charges if maintained in credit.
- Utilise fee-free options: If possible, use a bank or ATM that does not charge any fees for withdrawals. Some banks offer accounts or cards with fee-free foreign ATM withdrawals, which can help you avoid additional costs.
By following these suggestions, you can optimise your withdrawals from a local bank account at the airport and minimise any unnecessary expenses or unfavourable exchange rates.
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Use a credit, debit, or specialist travel money card
Using a credit, debit, or specialist travel money card can be a convenient option to pay for things during your vacation. Typically, you’ll get a fair exchange rate when using your credit or debit card, as long as you avoid the unfair charges associated with Dynamic Currency Conversion (DCC). However, it is worth checking the costs of ATM withdrawals while you’re abroad, as these can be charged by both your home bank and the ATM operator, and can stack up quickly.
If you’re using a credit card when travelling, it is especially important to understand the fees you’ll need to pay. Some credit cards charge more for cash withdrawals, for example, or may start charging interest right away, which can increase the overall cost of your trip. Travel money cards are becoming more popular with travellers because they offer convenience and can be a safe way to carry money with you when you’re away from home.
Prepaid cards have the advantage of allowing you to choose to exchange cash in advance, locking in a rate, rather than getting the exchange rate when you spend as you would with a credit or debit card. This means you'll know exactly how much you have to spend in the foreign currency during your trip, but you will also be subject to currency fluctuations. There are a few places that don't accept them, such as car hire firms and pay-at-pump petrol stations.
If you’re travelling to visit a friend or family member who has a local bank account, you could also consider sending them some money from your US account and then withdrawing it at a fee-free ATM when you arrive. This can get you a better exchange rate than using a credit or debit card, and you can avoid international cash withdrawal fees.
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Frequently asked questions
There is no set limit on how much money you can convert at the airport. However, it is advised to only convert small amounts due to poor exchange rates and high fees.
No, there are other options available. You can exchange currency before your trip or use a credit, debit, or specialist travel money card.
Compare rates using an online currency converter or checking the rate on Google. You can also use a service like Wise, which offers a mid-market exchange rate with a small upfront fee.
Exchanging currency at the airport is convenient, especially if you need foreign currency for last-minute business transactions or expenses.
Yes, many international airports offer currency exchange services, including Washington Dulles International Airport, Raleigh-Durham International Airport, Charlotte Douglas International Airport, and Denver International Airport.
