Why Airport Currency Exchange Is a Ripoff

Airport currency exchange counters are convenient—and that convenience comes at a steep price. Exchange rates at airport kiosks typically run 8-15% worse than mid-market rates, meaning a $1,000 exchange could cost you $80-150 in hidden fees. Better alternatives exist for nearly every traveler.

Why Airport Rates Are So Bad

Airport currency exchanges operate as monopolies or near-monopolies in their terminals. Without competition, they can charge whatever travelers will pay. Add in high airport rents, 24-hour staffing costs, and captive customers with immediate needs, and you get rates that favor the exchange company significantly.

The displayed rate tells only part of the story. Many counters advertise competitive-looking rates but add service fees, commissions, or both. A rate that looks reasonable can become expensive after a $7.95 transaction fee plus 3% commission.

Better Options Before You Travel

Order from your bank: Most banks offer foreign currency with rates far better than airport exchanges. Order a few days before travel for pickup at your local branch. Some banks waive fees for premium account holders.

Credit cards with no foreign transaction fees: Cards like Chase Sapphire, Capital One Venture, and many travel cards charge the mid-market rate with zero additional fees. For most purchases abroad, this represents the best possible exchange rate.

Debit cards at ATMs abroad: Withdrawing local currency from ATMs typically provides near-bank rates. Look for bank-affiliated ATMs rather than independent machines to minimize fees. Inform your bank before traveling to avoid fraud blocks.

Options at Your Destination

Local bank ATMs: Airport ATMs operated by local banks usually offer decent rates—far better than exchange counters in the same terminal. Withdraw enough cash for your first day or two to avoid multiple transaction fees.

Downtown exchanges: Currency exchange offices in city centers face more competition and typically offer better rates than airport locations. If you need cash, exchange a small amount at the airport for immediate needs, then find a better rate downtown.

Hotel front desks: Many hotels exchange currency for guests, sometimes at reasonable rates. Ask about their rates before exchanging—some hotels match exchange counter rates while others offer better deals.

What to Do If You Must Exchange at the Airport

If airport exchange is unavoidable, minimize the damage. Exchange only what you need for immediate transportation and tips. Use cards for everything else until you can find better rates elsewhere.

Compare multiple counters if available. Different companies in the same airport sometimes offer noticeably different rates. Even a 1-2% difference matters on larger exchanges.

Always decline the “dynamic currency conversion” option that lets you see charges in your home currency. This adds another layer of unfavorable exchange rates on top of already poor rates.

Planning Ahead Saves Money

The best currency exchange happens before you reach the airport. Order foreign currency from your bank, ensure you have no-foreign-fee credit cards, and inform your bank about travel plans. These simple steps can save hundreds of dollars on international trips compared to relying on airport exchanges.