You're heading abroad and need foreign cash. The exchange options range from "1% off mid-market rate" to "10% off plus fees." The differences are large enough that for a $2,000 trip, smart currency choices save $100+. Here's the practical hierarchy.

The mid-market rate (your benchmark)

The "mid-market rate" is the actual exchange rate banks use when trading currency with each other. Google "100 USD to EUR" gives this rate. It's the best you can theoretically get — every consumer option is some markup above this.

The exchange options ranked

Best (0–1% above mid-market):

  1. No-foreign-fee credit card. Charges in local currency at the network's daily rate (Visa or Mastercard, both publish their rates). 0% fee from card issuers like Chase Sapphire Preferred, Capital One Venture, Citi Premier, AmEx Platinum.
  2. Schwab debit card or Charles Schwab High-Yield Investor Checking. No foreign ATM fees and reimburses ATM fees globally.
  3. Wise (formerly TransferWise). Multi-currency account that gives near-mid-market rates with a small flat fee. Best for larger amounts.

Good (1–3% above mid-market):

  1. Local bank ATM. Use a debit card from a major U.S. bank (Bank of America, Chase, Wells Fargo) at a partner foreign bank. Typical fee 1–3% plus your bank's $5 ATM fee.
  2. Standard credit card with 1% foreign fee. Better than nothing, but the 0%-fee cards are widely available.

Average (3–5% above mid-market):

  1. Bank-affiliated currency exchange counters. Some banks let you order foreign cash before traveling. Convenient but higher rates than ATMs.
  2. Specific business currency exchange chains: Currency Exchange International (CXI), AAA travel offices.

Bad (5–10% above mid-market):

  1. Airport currency exchange counters (international or domestic). Worst rates on the planet. Avoid.
  2. Tourist-area exchange shops. Especially around major attractions — heavy markups.
  3. Hotel front desks. Convenient but priced like airport counters.

The "dynamic currency conversion" trap

When using a credit card abroad, the merchant or ATM may ask: "Would you like to charge in your home currency (USD) or local currency (EUR)?"

Always pick local currency. If you choose USD, the merchant locks in their own conversion rate, which is usually 4–8% worse than your card's rate. They keep the markup.

This is called Dynamic Currency Conversion (DCC), and it's perfectly legal but designed to extract extra fees. Especially common at hotels and tourist shops in Europe and Asia.

How much cash to carry

Modern travel needs very little cash:

  • Most of Europe: credit cards everywhere except small markets and some cafes. €100–200 in cash for a week is plenty.
  • UK: contactless cards work everywhere. £50–100 cash.
  • Japan: still cash-friendly despite recent contactless growth. ¥30,000–50,000 ($200–300) for a week.
  • Latin America: mixed; carry $50–150 in small bills (in U.S. dollars, often accepted).
  • Southeast Asia: heavily cash-based. Plan to withdraw $200–300 worth of local currency.

Get cash from ATMs upon arrival, not before. ATM rates beat any pre-trip currency order.

Withdrawing from foreign ATMs

Tips for ATM withdrawals abroad:

  1. Use ATMs at major banks (BNP Paribas, Santander, Lloyds) — better rates and security than standalone ATMs.
  2. Decline DCC if asked.
  3. Withdraw larger amounts less frequently — your bank's fixed fee is the same whether you withdraw $50 or $500.
  4. Notify your bank of travel plans in advance — many banks block foreign transactions otherwise.

Tipping in the local currency

Tip in the local currency in cash. U.S. dollars are accepted in some tourist contexts but at unfavorable rates. Locals don't want to convert your tips.

Leftover currency at trip end

If you have leftover foreign currency:

  • Spend it at the airport before leaving (food, souvenirs, magazines).
  • Donate to airline charity boxes (loose change goes to UNICEF on most airlines).
  • Save for next trip if you'll return within 1–2 years.
  • Avoid converting at the airport on departure — bad rates.

For very large amounts

If you're moving $10,000+ for buying property, large transfers, etc., specialty services like Wise, Revolut, or Wells Fargo international transfers handle these at much better rates than retail ATMs. Worth comparing.

Compute your conversion

Our currency converter lets you input the actual exchange rate you'll get and an optional fee percentage. Useful for comparing different conversion options before committing — or for figuring out the bottom-line cost of a foreign-currency purchase.