Airport Currency Exchange: Quick, Easy, And Safe

Exchanging currency at the airport is convenient, but it's not the best option if you want to get the most out of your money. Airport currency exchanges tend to have the worst exchange rates and charge additional fees on top of that.

To get a better deal, it's recommended to exchange your money at your bank before your trip. Most major banks offer currency exchange services and allow you to order foreign currency online, by phone, or at a local branch. They may also offer to ship the currency to you, sometimes with free postage for certain amounts. While there may be a small fee for exchanging small amounts, banks generally provide the best rates and lowest fees.

If you're unable to exchange currency before your trip, using a foreign ATM once you arrive at your destination is another good option. Many major banks have ATMs overseas, providing decent exchange rates and eliminating out-of-network ATM fees. However, it's important to be mindful of any ATM fees, which can add up if you make multiple withdrawals.

Ultimately, by comparing exchange rates and understanding the associated fees, you can make an informed decision about where to exchange your currency to get the best value.

Why airport exchanges are a bad idea

Airport currency exchanges are a bad idea because they offer poor exchange rates and high fees. These exchanges know that travellers often need local currency at the last minute, so they charge higher rates than you would find elsewhere. They also sometimes hide additional fees within these poor exchange rates.

You can avoid getting ripped off by ordering currency from your bank before you fly. Most banks allow you to order foreign currency, which you can typically pick up at a local branch. Some banks will even ship the currency to you, and you might not be charged for postage if you order a certain amount.

If you're already at the airport and need to exchange currency, you could consider using an ATM. While the exchange rate might not be great, it will likely be better than that offered by the currency exchange kiosks.

How to get a good exchange rate

Exchanging currency at the airport is often an expensive option, with airport exchanges typically offering unfavourable rates and high fees. However, if you need to exchange currency at the airport, there are a few things you can do to get a good exchange rate.

Research Current Exchange Rates

Before you go to the airport, check the current exchange rates using a trusted source such as Reuters or the International Monetary Fund (IMF). This will help you understand whether the rates offered at the airport are reasonable.

Compare Rates at Different Airport Bureaus

If there is more than one currency exchange bureau at the airport, be sure to compare their rates. While the difference may be small, you could save a significant amount if you are exchanging a large sum of money.

Order Currency in Advance

If possible, order the currency you need in advance from your bank. Most banks allow you to order foreign currency online or by phone, and you can usually pick it up at a local branch. This is often a better option than exchanging money at the airport, as banks typically offer better exchange rates and lower fees.

Use a Credit Card with No Foreign Transaction Fees

Using a credit card that doesn't charge foreign transaction fees can be a good way to avoid poor exchange rates and high fees. However, be sure to read the fine print, as some cards may charge other types of fees, such as ATM or cash advance fees.

Withdraw Cash from an ATM

Using an ATM at the airport can be a convenient way to get cash in the local currency. If your bank has branches abroad or partners with other banks, using those ATMs may provide a decent exchange rate and lower fees. However, be sure to check what kind of fees your bank charges for using out-of-network ATMs, and consider withdrawing a larger sum to reduce the impact of any per-transaction fees.

The benefits of exchanging currency at a bank

Firstly, banks often offer better exchange rates than those found at airport kiosks. Airports tend to charge higher fees and less favorable rates due to the convenience and captive audience they serve. By exchanging money at a bank, you can often get a more competitive rate, which means you'll get more for your money. Banks typically have lower overhead costs, and these savings are passed on to the customer.

Another advantage is that banks usually offer a wider range of currencies. While an airport kiosk may only stock the most common currencies, a bank is more likely to be able to exchange a less commonly traded currency, which is especially beneficial if you are traveling to a less popular destination. Banks also often provide the option to order specific currencies if they don't have them in stock, ensuring you get the exact currency you need.

Exchanging currency at a bank also provides a level of security and peace of mind. Banks are highly regulated and must adhere to strict financial guidelines, ensuring your transaction is safe and secure. They also often offer better customer support and can provide advice on the best options for your currency exchange, including any fees or charges you may incur. Many banks also offer online or mobile app currency exchange services, providing an even more convenient and accessible way to exchange money.

Finally, banks often have more favorable policies when it comes to exchanging leftover currency when you return home. They may offer better buy-back rates, ensuring you get a good deal when converting any unused foreign currency back into your home currency. This can save you money and ensure you don't lose out when you return from your trip.

While exchanging currency at an airport is undoubtedly convenient, especially if you haven't had a chance to plan ahead, visiting a bank beforehand can offer better value, security, and flexibility. It's always a good idea to shop around and compare rates and fees to ensure you get the most out of your money, wherever you choose to exchange it.

Using credit and debit cards abroad

Using your credit or debit card abroad is a convenient way to pay for purchases and avoid carrying large amounts of cash. However, it's important to be aware of potential fees and take steps to minimise them. Here are some tips for using credit and debit cards when travelling internationally:

• Check for foreign transaction fees: Some banks and card providers charge foreign transaction fees, which can add up to 3% of the purchase price for every transaction made abroad. Check the terms and conditions of your card or contact your bank to find out if any fees apply.
• Apply for a card without foreign transaction fees: If your current card charges foreign transaction fees, consider applying for a travel credit or debit card that doesn't charge these fees. This can save you a significant amount of money, especially if you plan on making multiple purchases during your trip.
• Choose to pay in the local currency: When making purchases, you may be given the option to pay in the local currency or your home currency. Always choose to pay in the local currency to avoid additional currency conversion fees and poor exchange rates.
• Be mindful of ATM fees and withdrawal limits: Using your debit card at ATMs overseas can incur various fees, including foreign transaction fees, ATM fees, and out-of-network fees. Check with your bank to understand the fees and daily withdrawal limits that apply to your card. Consider withdrawing larger amounts to minimise the impact of per-transaction fees.
• Use your financial institution's ATMs: Your bank's ATM network is likely to offer the most competitive exchange rates and lower fees when withdrawing cash abroad. Use your bank's app or website to locate their ATMs near you.
• Plan ahead: If you know you'll need local currency upon arrival, order it from your bank before you travel. Most major banks offer this service, allowing you to pick up foreign currency at a local branch or have it delivered to your home. This way, you can avoid the unfavourable exchange rates and high fees of airport currency exchange kiosks.

How to handle leftover foreign currency

Handling leftover foreign currency can be tricky, especially if you want to make the most of it. Here are some tips on how to handle leftover foreign currency:

Exchange at the Airport

If you want the convenience of exchanging your money before you leave the country, the airport is an option. Most international airports have exchange counters, although they usually only accept banknotes, not coins. However, the rates and fees at airport exchange services are typically not as favourable as those offered by banks.

Exchange at a Bank

Banks often offer better exchange rates than airport exchange services. They may also be able to deposit the funds directly into your account. Additionally, some currency exchange services offer "buyback" programs, where you can sell back unused foreign currency that you previously exchanged with them.

Save it for Future Travel

If you plan on returning to the same country or know someone who will be travelling there, keeping the leftover currency can be a practical choice. This eliminates the need to exchange money upon arrival, and you can use it for initial expenses like transportation or meals. However, keep in mind that the value of the currency may change or the country may adopt a different currency in the future.

Donate to Charity

Some airports have collection boxes or "change globes" where you can donate your leftover foreign currency to organizations like UNICEF's Change for Good program, animal rescues, and child hospitals. You can also donate directly to charities like The Humane Society of the United States, which accepts foreign currency donations.

Spend it Before Departing

Try to use up your leftover foreign currency while you're still in the country. Switch to cash payments a few days before you depart and use the cash for tips, taxi fares, or small purchases. You can also use it to pay part of your hotel bill or expenses at the airport, like duty-free shopping or a meal before your flight.

Other Options

If you have a significant amount of leftover foreign currency, you could try selling it on an online marketplace or to coin collectors, especially if it's from a country with unique or rare currency. Alternatively, you could keep the currency as a souvenir or use it for crafting projects.

Frequently asked questions