✈️ International Travel and Currency Exchange

The Spread: How Currency Exchange Makes Money

Every currency exchange charges a spread — the difference between the rate they buy at and the rate they sell at. A 2% spread on $2,000 costs $40. Airport kiosks and hotel desks often charge 8%–15% spreads, costing $160–$300 on the same $2,000.

The mid-market rate (what you see on Google or our Currency Converter) is the "real" rate between currencies. Any exchange service charges you more than this. Your goal is to minimize how much more.

The Best Way to Get Local Currency

Ranked from best to worst: 1. ATM withdrawals with a no-foreign-fee debit card (e.g., Charles Schwab, Wise) — close to mid-market rate, small ATM fee at most 2. Credit card with no foreign transaction fee — Visa/Mastercard rates are near mid-market 3. Currency exchange before departure at a bank (allow 1–2 weeks for less common currencies) 4. Airport ATMs (avoid airport currency exchange kiosks entirely) 5. Hotel currency exchange desks 6. Airport currency exchange kiosks (worst — often 10%+ spread)

The Dynamic Currency Conversion Trap

Many overseas ATMs and merchants offer to charge you in your home currency (USD) instead of the local currency — this is called Dynamic Currency Conversion (DCC).

Always decline and pay in local currency. DCC lets the merchant apply their own exchange rate, often 3%–7% worse than your card's rate. The "convenience" of seeing charges in USD costs real money.

Wise and Modern Alternatives

Fintech services like Wise (formerly TransferWise) offer near-mid-market exchange rates with transparent fees. A Wise debit card can be used internationally with significantly lower fees than traditional banks.

For large transfers (wire transfers, overseas property purchases), Wise, OFX, or similar services typically beat bank wire rates by 1%–3%, which on a $100,000 transfer is $1,000–$3,000 in savings.