Most banks can swap foreign cash, yet the rate, fees, and availability change by branch, so a fast call and a quick comparison can save money.
You’ve got foreign bills in your wallet and a simple question: can a bank trade them for the money you actually use? Most of the time, yes. The catch is that “yes” can look different from one bank to the next. Some branches handle cash exchange daily. Some only do it for account holders. Some can order foreign cash for travel, yet won’t buy your leftover notes at all.
This guide gives you the real-world playbook: what banks usually offer, what you’ll pay, what to ask before you show up, and when another option beats a bank by a mile.
Can Banks Exchange Currency? What To Expect
Banks that offer currency exchange usually do it in one of three ways. Which one you get depends on the bank, the branch, and your relationship with them.
Cash Exchange At A Branch Counter
This is the classic setup: you bring physical notes, the teller checks them, then you receive local cash. Some banks keep a small stock of popular currencies. Many don’t. If they can’t exchange it on the spot, they may offer to order the currency, or they may tell you to use a partner exchange desk.
Account-Based Exchange
In many places, a bank will exchange currency only if you bank with them. That can mean you must hold an account, a card, or both. The exchange might still be done with cash at the counter, yet the bank links the service to your customer profile for anti-fraud and compliance checks.
Ordering Foreign Cash For Travel
If you’re traveling soon, a bank might sell you foreign cash that arrives in a few days. This can be handy for a destination where ATMs are scarce or card acceptance is spotty. You’ll still want to compare the bank’s price to other options, since “bank” doesn’t always mean “cheap.”
What Banks Usually Won’t Do
- Buy coins: many banks only exchange paper notes, not foreign coins.
- Take damaged notes without extra steps: torn, stained, or taped notes often need a separate process.
- Offer every currency under the sun: less-traded currencies may not be available at all.
Exchanging Currency At Banks: Rates, Fees, And Limits
If you’ve ever compared quotes and felt confused, you’re not alone. Currency pricing has layers. Banks can charge you in ways that don’t look like a “fee” at first glance.
The Two Costs That Matter
Most bank exchanges include:
- The rate spread. This is the gap between the bank’s buy/sell rate and a reference market rate.
- Service fees. Some banks charge a flat fee per exchange, a percentage fee, or both.
A bank can advertise “no fee” and still cost more through a wider spread. Another bank can charge a clear counter fee while giving a tighter rate. You don’t know which is better until you compare the final amount you’ll receive.
Minimums, Maximums, And Branch Rules
It’s common to run into limits, like a minimum exchange amount or a daily cap. Branches may also set rules such as “customers only,” “cash notes only,” or “by appointment.” These rules are more common when the branch keeps little foreign cash on hand.
How To Benchmark A Bank Rate In Under Two Minutes
When you want a fast “sanity check,” use a public reference rate as a baseline, then measure the bank’s offer against it. In the euro area, the ECB euro foreign exchange reference rates show a widely used daily snapshot. Banks aren’t required to match it, yet it gives you a clean yardstick.
If you’re comparing a bank exchange to card spending or ATM withdrawals, you can also check what a card network posts as an indicator. Visa provides a public tool: the Visa Exchange Rate Calculator. It helps you estimate what a Visa conversion could look like on a given date, then you can weigh that against a bank counter deal.
Why Banks Ask For ID And Extra Questions
Currency exchange is a cash transaction, and cash activity triggers stricter monitoring in many countries. In the U.S., for instance, federal rules require a report for cash transactions over certain thresholds, and that can include currency exchange. A commonly cited rule is the requirement to file reports for transactions in currency over $10,000, described in 31 CFR § 1010.311 (reports of transactions in currency). Even when you’re nowhere near that size, banks may still ask questions to confirm the source of funds and spot suspicious patterns.
That can feel annoying. It’s also normal. Bring ID, and if you’re exchanging a large amount, bring basic context (travel receipts, a withdrawal slip, or other paperwork that matches your situation).
| Exchange Option | Typical Cost Pattern | Best Fit |
|---|---|---|
| Bank branch (cash at counter) | Spread + possible counter fee | Small-to-medium cash exchange when you want a familiar place |
| Bank orders foreign cash | Spread + ordering fee in some cases | Pre-trip cash when you want to pick up locally |
| Bank ATM abroad (withdraw local currency) | ATM fee + bank fee + exchange spread | Travelers who need cash in the destination currency |
| Airport exchange kiosk | Wide spread, sometimes visible fees | Last-minute needs when convenience beats price |
| Dedicated currency exchange shop | Spread varies; fees often negotiable for bigger amounts | Major cities, larger exchanges, more currency selection |
| Hotel front desk exchange | Often very wide spread | Emergency small amounts when you’re stuck |
| Card purchase in local currency | Network rate + your bank’s foreign transaction fee (if any) | Most day-to-day spending when cards are accepted |
| Paying in your home currency at a terminal (DCC) | Merchant-set conversion spread, often pricey | Rare cases only; usually skip |
How To Get A Better Deal At A Bank
If you like using a bank for the simplicity, you can still stack the odds in your favor. The trick is to show up with the right questions, not blind trust.
Call The Branch And Ask These Five Things
This call takes less time than waiting in line, getting turned away, then hunting for another option.
- Do you exchange this currency today? Name the currency and whether you have cash notes or want to buy foreign cash.
- Do I need an account? Some banks won’t do a walk-in exchange for non-customers.
- What fees apply? Ask for flat fees and percentage fees. Ask if fees change by amount.
- What rate do you use? If they can’t quote a rate by phone, ask how it’s set (daily table, live market feed, head office rate).
- Do you accept older series notes? Some branches reject old designs, even if they’re still exchangeable elsewhere.
Ask For The Final Number, Not A Vague Rate
Rates mean nothing until you know the bottom line. A simple script works:
- “If I give you 300 USD in cash, how many euros do I receive after all fees?”
- “If I want 300 USD, how many euros do I pay total?”
That one question forces the bank to include spread and fees in the same answer. It also makes it easy to compare across options.
Watch For “Exchange Fee” That’s Hidden In The Rate
Some pricing is clean and visible, some isn’t. Regulators have pushed for clearer communication on currency conversion costs in payment services. In the UK, the Financial Conduct Authority has published guidance on pricing transparency in international payments, including rate markups and fee disclosure, in its Consumer Duty international payment pricing transparency review materials.
You can use that same mindset at a bank counter: get the full cost before you commit, and don’t accept a fuzzy answer like “our rates are competitive.” Ask for the exact payout.
Know When An ATM Beats A Counter Exchange
If you’re traveling, the cheapest “cash exchange” often comes from withdrawing local currency at an ATM, then declining extra conversion offers on the screen. Some ATMs and card terminals offer to convert the charge into your home currency right there. It looks friendly. It can also be pricey. Paying in local currency gives your bank and card network the conversion instead of the merchant’s markup.
Still, ATMs can stack fees, too. Your bank might charge a foreign ATM fee, the ATM owner might charge a surcharge, and your bank might add a foreign transaction fee. You’ll need to do a quick comparison for your own accounts.
Swap Leftover Cash Before You Leave The Country
If you’re holding a less-traded currency, you may get a better deal converting it back while you’re still in the country where it’s used. Many banks and exchange desks outside the currency’s home region either won’t take it, or they’ll price it with a wider spread since they’ll need to ship it out.
| Checkpoint | What To Do | What You Avoid |
|---|---|---|
| Confirm availability | Call the branch and ask if they handle your currency today | Wasted trips and “we don’t do that here” surprises |
| Get the full payout | Ask how much you receive after all fees for a set amount | Comparing fake “rates” that ignore fees |
| Bring ID | Carry valid identification and basic paperwork for large amounts | Delays from compliance checks |
| Check note condition | Bring clean, untorn notes; separate damaged notes | Rejected cash or reduced offers |
| Skip merchant conversion | When abroad, choose to pay in local currency on terminals | Extra markups from dynamic currency conversion |
| Plan coin leftovers | Spend coins before you come home or donate them at airport bins | Coins that can’t be exchanged later |
| Time your exchange | Exchange on a weekday when branches are staffed and cash services run | Weekend dead ends and limited teller services |
Edge Cases Where Banks Can Still Help
There are a few situations where a bank (or a central bank process routed through your bank) can be the cleanest route, even if it’s not the cheapest.
Damaged Banknotes
If your notes are torn, washed, taped, or stained, many exchange desks will refuse them. Banks may accept them and forward them through the proper channel, depending on the currency and the damage. In Finland, guidance from the Bank of Finland explains how mutilated or damaged notes are handled and when they’re forwarded for review: Damaged banknotes (Suomen Pankki).
If you have damaged euro notes, the “bring it to your bank” approach is often the first step. Bring every piece you have, keep the fragments together, and don’t try to “fix” the note with glue or tape right before you go.
Large Cash Exchanges
Big cash exchanges can trigger extra reporting and questions. That doesn’t mean you’re doing anything wrong. It means the bank has rules to follow. If your exchange is large, ask the branch what they need from you so you don’t get stuck at the counter. Bring ID. Be ready to explain the source of funds in plain words.
Older Series Notes And Out-Of-Date Designs
Some currencies retire designs and replace them. You might still be able to exchange old notes, yet not every bank will accept them at the counter. If you suspect your notes are older, search the issuing central bank’s guidance, or call your bank and ask if they accept that series.
When A Bank Isn’t The Best Option
Banks are convenient, and plenty of people stick with them for that reason. Still, there are times when another route is just smarter.
If You Need The Best Rate For A Larger Amount
For a larger exchange, a dedicated exchange shop in a major city may beat a bank, since FX is their main business. Some will negotiate spreads on the spot, especially if you’re exchanging a common currency and you’re paying with clean, large-denomination notes. Ask for the final payout before you hand over cash.
If You’re At An Airport
Airport kiosks win on convenience, not price. If you must use one, exchange the smallest amount that gets you through transport and the first meal, then use an ATM or a bank later.
If Your Goal Is Spending, Not Holding Cash
If you’re traveling to a card-friendly place, you may not need much cash at all. A small amount for taxis, tips, and small shops may be enough. For everything else, card payments in local currency can be simpler. Use the Visa calculator link above to sanity-check how card conversion might land on a given date, then compare it to what your bank counter offers.
If You’re Trying To Move Money Abroad
Currency exchange and sending money abroad are related, yet they’re not the same thing. Remittances and international transfers come with their own fees and disclosures. If you’re wiring funds, ask your bank for a full fee breakdown, the exchange rate they’ll use, and whether intermediary banks can take a fee mid-transfer.
A Practical Way To Decide In Five Minutes
If you want a quick decision without guessing, do this:
- Pick a test amount you might exchange (like 200 or 500 in the foreign currency).
- Call your bank branch and ask for the exact payout after fees.
- Check a public reference rate for the same day (ECB reference rates are a clean benchmark for euro pairs).
- If travel is involved, compare the bank payout to an ATM plan and a card plan.
- Choose the option that gives you the best mix of cost, convenience, and access for your specific trip or need.
That’s it. No guessing. No “banks are always cheaper” myth. Just real numbers you can compare.
References & Sources
- European Central Bank (ECB).“Euro Foreign Exchange Reference Rates.”Daily reference rates that work as a baseline for comparing bank exchange quotes.
- Visa.“Exchange Rate Calculator.”Rate indicator tool for estimating card-based currency conversion on a chosen date.
- eCFR (U.S. Government Publishing Office).“31 CFR § 1010.311 — Reports of Transactions in Currency.”Regulatory text describing reporting obligations tied to large cash transactions, including currency exchange.
- Financial Conduct Authority (FCA).“International Payment Pricing Transparency: Good And Poor Practice.”Regulatory guidance on clear disclosure of exchange rate markups and fees in international payments.
- Bank of Finland (Suomen Pankki).“Damaged Banknotes.”Explains how damaged euro banknotes can be submitted via banks or exchange desks for review and exchange.