Converting U.S. dollars into a foreign currency is necessary for most trips abroad, and we generally have two options for doing it: 1) automatically with a credit card and 2) by converting hard currency at a bank or airport kiosk. But which is the better deal?
You may not think this is worth worrying about, but there are actually hundreds of dollars at stake for most international travelers. So a strategic approach to currency exchange could be the difference between flying first class or coach, for example.
To help international travelers save as much as possible, WalletHub priced out the most popular currency exchange services. We collected the exchange rates and fees charged by the largest banks, credit unions, and card networks as well as Currency Exchange International, which is commonly found in airports. And we determined how many Euros a traveler would get from each service in return for $300, as of May 8, 2023. We chose the Euro because it is the most popular currency among Americans traveling abroad.
You can find the results below, followed by a breakdown of the best international credit cards and bank accounts.
Opinions and ratings are our own. This study is not provided, commissioned or endorsed by any issuer. WalletHub independently collected information for some of the cards on this page.
Main Findings
Best Option: A no foreign transaction fee credit card saves travelers 7.9% relative to Currency Exchange International and 7.3% compared to the average bank/credit union.
*Numbers are averages and use of a no-foreign-fee card is assumed.
2019’s Best Way to Exchange Currency:
| Currency Exchange Method | 2023 Average Exchange Rate | 2023 Average Fee | % Higher Than Best Option |
|---|---|---|---|
| Credit Card | 1.0858 | 1.53% | 0.00% |
| Debit Card | 1.0858 | 2.03% | 0.51% |
| Credit Union Avg. | 1.1528 | $3.50 | 5.47% |
| Bank Avg. | 1.1558 | $4.36 | 5.99% |
| Currency Exchange International | 1.1793 | $0.00 | 6.50% |
Note: The Visa exchange rate is 1.0750 and the Mastercard exchange rate is 1.0965, as of May 8, 2023. The average card exchange rate is therefore 1.0858. The credit card and debit card exchange rates reflect this average, as Visa and Mastercard are the most widely accepted card networks internationally.
Expensive Alternatives: Exchanging hard currency remains far more expensive than using a credit card, but Currency Exchange International is catching up to banks and credit unions.
*Note: 2014 was the first year that credit union data was collected. From 2011 to 2019, we used Travelex as a benchmark for "Airport Currency Exchange," but it was replaced by Currency Exchange International in 2022. Due to Covid travel restrictions, data was not collected in 2020 and 2021.
Bank vs. Credit Union: Surprisingly, you won’t save much converting hard currency at a credit union rather than a bank.
*Note: Due to Covid travel restrictions, data was not collected in 2020 and 2021.
Best Banks/Credit Unions: Even the cheapest banks and credit unions (Bank of America, Onpoint Community Credit Union and Service Credit Union) are more expensive than credit and debit cards.
Best & Worst Banks/Credit Unions for Exchanging Currency:
| Top 3 | Bank/Credit Union | % Higher Than Credit Card / Debit Card | Info | Bottom 3 | Bank/Credit Union | % Higher Than Credit Card / Debit Card |
|---|---|---|---|---|---|---|
| 1 | Bank of America | 4.24% | Info | 33 | Bank of the West | 10.29% |
| 2 | Onpoint Community Credit Union | 5.66% | Info | 34 | First Tech Federal Credit Union | 10.49% |
| 3 | Service Credit Union | 5.68% | Info | 35 | RBS Citizens | 10.89% |
Best Credit Cards & Debit Cards for Currency Conversion
WalletHub’s editors selected the following accounts because they lack foreign transaction fees and excel in at least one other major category, such as rewards, fees or 0% intro APRs.
2023’s Best Credit Cards for Currency Conversion:
| Best for... | Card Name |
|---|---|
| Rewards |  Chase Sapphire Preferred® Card |
| Cash Back for High-Spenders |  Alliant Cashback Visa® Signature Credit Card |
| Cash Back with No Annual Fee |  Citizens Bank Cash Back Plus™ World Mastercard® |
| 0% Purchases |  Fifth Third 1% Cash/Back Card |
| Students |  Bank of America® Travel Rewards credit card for Students |
| Business |  Capital One Spark Cash Plus |
2023’s Best International Debit Cards:
| Best for.. | Account Name |
|---|---|
| Low Cost | Charles Schwab High Yield Investor Checking |
| High Rate | Capital One 360 Checking Account |
You get your debit card when you open one of the checking accounts listed above. For more options, check out WalletHub’s complete selection of no foreign fee credit cards and no foreign fee debit cards.
5 Money-Saving Tips for International Travelers
1. Use a credit card with no foreign transaction fee
Why waste the time exchanging physical currency, not to mention risk carrying it around, when a credit card will handle everything automatically and give you the best exchange rates? Plus, plastic provides a $0 liability guarantee for unauthorized transactions should your card be lost or stolen.
You’ll save money no matter what card you use, but a credit card with no foreign fees will reduce your costs even more. Just remember to get such a card before booking anything through a foreign-based company. If the transaction is processed outside of the U.S., it will trigger a foreign fee.
2. Bring a debit card with low international ATM withdrawal fees as well
You’re going to need cash at some point, whether it’s for a cab, tipping a bellboy or something else entirely. Bringing a low-cost Visa or Mastercard debit card will enable you to get cash as needed and enjoy plastic’s favorable exchange rate. Unlike cash, a card is also replaceable if you get pickpocketed.
3. Notify your bank of your travel plans
Some credit and debit card companies may freeze your account if international purchases begin appearing without warning. That can be a clear sign of fraud, after all.
It's especially important to let smaller credit card issuers know when you'll be leaving, where you're headed, and when you'll be back. Seven of the 10 largest issuers say they'll automatically detect when you're traveling and don't need a warning, according to WalletHub’s latest International Credit Card Report. Still, it doesn't hurt to let major issuers know as well, just to be safe.
4. Get the phone number to call your bank collect
If your card gets lost or stolen, being able to contact your bank will be helpful for two reasons. First, you’ll be able to nip any potential fraud in the bud. Second, you may be able to convince your bank to send you a replacement card.
Seven of the 10 largest credit card issuers will send a free replacement card, according to WalletHub research, and some other issuers may offer the service for a small fee. In any case, remember to be persistent. Even if international replacement cards aren’t standard, they’re usually available to customers in need who push the issue.
5. Steer clear of dynamic currency conversion
If a merchant offers to convert your purchase total from the local currency to U.S. dollars, don’t accept. They might be trying to help you, sure. Or they could be looking for an excuse to apply a high exchange rate and squeeze a bit more money out of you.
It’s best not to find out, especially when you can use your phone or a small pocket calculator to make quick conversions and see how much things cost.
Detailed Findings
Currency Exchange Rates & Fees by Major Bank/Credit Union:
| Bank | 2023 Exchange Rate | 2023 Fee** | % Higher Than Credit Card / Debit Card* |
|---|---|---|---|
| Comerica | $1.1542 | $0.0 | 5.93% |
| Northern Trust | $1.1609 | $9.0 | 9.28% |
| First Republic Bank | $1.1548 | $0.0 | 5.98% |
| HSBC | $1.1517 | $0.0 | 5.73% |
| BMO Harris Bank | $1.1582 | $0.0 | 6.26% |
| Wells Fargo | $1.1520 | $0.0 | 5.75% |
| First Horizon | $1.1605 | $10.0 | 9.56% |
| Bank of America | $1.1055 | $7.5 | 4.24% |
| PNC | $1.1596 | $0.0 | 6.37% |
| Capital One | $1.1582 | $0.0 | 6.26% |
| U.S. Bank | $1.1539 | $10.0 | 9.04% |
| Chase | $1.1548 | $0.0 | 5.98% |
| Bank of the West | $1.1619 | $12.0 | 10.29% |
| First Citizens Bank | $1.1638 | $0.0 | 6.71% |
| TD Bank | $1.1585 | $7.5 | 8.62% |
| Fifth Third Bank | $1.1575 | $0.0 | 6.20% |
| Santander Bank | $1.1634 | $0.0 | 6.67% |
| Regions | $1.1575 | $5.0 | 7.76% |
| Huntington | $1.1588 | $8.0 | 8.80% |
| Suntrust / Truist | $1.1549 | $10.0 | 9.12% |
| Key Bank | $1.1590 | $10.0 | 9.44% |
| M&T | $1.1648 | $0.0 | 6.79% |
| Union Bank | $1.1611 | $0.0 | 6.49% |
| Citi | $1.1516 | $5.0 | 7.29% |
| RBS Citizens | $1.1575 | $15.0 | 10.89% |
| Service Credit Union | $1.1511 | $0.0 | 5.68% |
| America First Credit Union | $1.1518 | $10.0 | 8.88% |
| Bank Fund Staff Federal Credit Union | $1.1525 | $0.0 | 5.79% |
| United Nations Federal Credit Union | $1.1539 | $0.0 | 5.91% |
| Onpoint Community Credit Union | $1.1509 | $0.0 | 5.66% |
| Eastman CU | $1.1531 | $0.0 | 5.84% |
| Visions Federal Credit Union | $1.1540 | $0.0 | 5.91% |
| Citizens Equity First Credit Union | $1.1520 | $10.0 | 8.89% |
| Wings Financial Credit Union | $1.1560 | $0.0 | 6.08% |
| First Tech Federal Credit Union | $1.1523 | $15.0 | 10.49% |
** Fee collected for in-person exchange.
***$10 is waived when $300 or more is exchanged.
We contacted 45 of the 50 largest credit unions, and only 10 offer currency exchange services.
Methodology
On May 8, 2023, we called branch locations for 70 of the largest banks and credit unions as well as the Currency Exchange International location in New York’s John F. Kennedy Airport. We asked how many Euros we would get for $300 and how much of that $300 would go to fees. When information was unclear or unavailable, we contacted another branch to confirm.
