The cheapest way to purchase foreign currency is to withdraw money at an automated teller machine (ATM) with your bank debit card, once you are in a foreign country. Foreign ATMs give you the interbank rate--a wholesale rate used by banks that is the lowest available rate. Commissions and fees may be added on top of that rate. The bank that owns the foreign ATM may assess a fee, and your home bank probably will charge a fee for using a foreign ATM. Added fees may be a flat fee or a percentage of the transaction. It's usually cheaper to obtain foreign currency from an ATM than by any other method. If your bank charges a flat fee instead of a percentage, it's cheaper to take out more money at one time than to make multiple small transactions. Remember that not all bank cards are compatible with all foreign ATMs, and in some developing countries ATMs well be scarce.
You can purchase foreign currency at U.S. banks. The prevailing rates may vary and will not be the interbank rate, and the bank will assess transaction fees. The resulting rates are still generally cheaper than purchasing foreign currency at commercial foreign exchange bureaus. You can also purchase foreign currency at a local bank branch in the U.S. Some banks stock bills in major currencies, such as the euro and yen, but they may have to order other currencies to be delivered to their bank branch. Wells Fargo allows customers to purchase foreign currency online, using a credit card, and delivers the foreign currency to the customer's home.
Another option is to buy currency at American Express, which has offices in the U.S. and throughout the world. You can purchase foreign currency at some offices, but they charge fees for the service. Participating American Express offices generally have a wide selection of currencies available and can order other currencies that aren't in stock. You can locate offices that offer foreign currency services with the Travel Office Finder on the American Express website.
