Banks, ATMs, or airport exchange? Here are the smartest ways to access local currency — and how to avoid unnecessary fees.
Digital payments dominate modern travel — and for good reason. Cards are safer, easier to track, and come with fraud and consumer protections. If your card is lost or compromised, it can be cancelled and replaced. Lost cash? That’s gone for good. The best credit cards for travellers also waive foreign transaction fees and are accepted widely across much of the world. But that doesn’t mean your card will be accepted everywhere you go or that cash is obsolete.
In many destinations, especially outside urban areas or for small transactions, cash is preferred — and, ironically, it’s often the more inconvenient and expensive mode of payment.
Converting your home currency into foreign cash can come at a steep cost, depending on how and where you do it. This guide breaks down the smartest ways to access foreign cash — helping you save on fees, avoid tourist traps, and stretch your travel money further.
Where to Get Local Currency: Pros and Cons Explained
ATMs Abroad: Often the Best Choice — If Your Card Allows
Withdrawing cash from ATMs in your destination country is typically one of the most efficient ways to access local currency. However, like all methods of exchange, there are advantages and disadvantages to keep in mind.
Pros:
ATMs typically offer exchange rates that are much closer to the mid-market rate — the benchmark banks use when trading between themselves. They’re also widely available in airports and cities around the world, often accessible 24/7. You can withdraw only what you need, reducing the risk of carrying large amounts of cash. Many are integrated into global ATM networks like PLUS or Cirrus, making them compatible with international cards. For travellers, this option offers unmatched convenience — and often the best possible exchange rates.
Cons:
Your home bank may charge a flat rate or percentage per transaction, while the foreign bank operating the ATM might add a surcharge on top. Then there’s Dynamic Currency Conversion (DCC) — where the machine offers to charge you in your home currency instead of the local one, usually with a hidden markup.
Pro tip: always decline DCC and choose to be charged in the local currency.
If you're using a debit card, fees are generally lower. Using a credit card, however, is a different story: cash withdrawals are treated as cash advances and come with steep fees and interest charged from the day of withdrawal. This is one of the few times you should avoid using your credit card while travelling, unless it's a last resort. Always read the fees schedule of your credit card prior to traveling to avoid any nasty surprises.
Location also matters. Avoid standalone ATMs in convenience stores or nightlife areas — they often come with higher fees and lower security. Stick with machines operated by major banks, ideally located in airports, inside bank branches, or in secure hotel lobbies.
Airport Foreign Exchange Counters: Convenient — But Expensive
You’ll spot them almost as soon as you land: branded currency exchange kiosks lining the terminal walkways, ready to convert your cash into local currency. They exist for one reason: convenience — and they charge heavily for it.
Pros:
After a long-haul flight, many travellers will be less inclined to search for a better deal. You won't have to queue, as you'll find numerous kiosks and counters in most terminals. If you arrive late at night, your cards aren’t working, or you forgot to arrange currency beforehand, they provide instant access to cash. In unfamiliar environments — especially where card usage is limited — exchanging a small amount at the airport can help ensure a smooth arrival and avoid logistical stress.
Cons:
Airport foreign exchange counters and kiosks almost always offer unfavourable exchange rates — well below the market average. Even when they advertise ‘no fees,’ there’s a catch — the margin is hidden in the exchange rate spread.
Use this option only if absolutely necessary, and for small amounts — just enough to get you where you need to go or cover initial expenses. For anything more, wait until you can access an ATM, a bank, or a currency exchange office outside the airport.
Banks and Currency Exchange Offices Abroad: A Reliable Backup
In destinations where card infrastructure is limited or reliable ATMs are hard to find, local banks and licensed money exchangers remain a solid option for accessing local currency.
Pros:
Exchange rates offered by banks and reputable money exchangers are typically more competitive than those at airport kiosks. In major cities, exchange offices often post clear buy/sell rates and may charge no commission on larger exchanges. Banks are regulated environments, providing peace of mind when handling larger sums.
Cons:
Opening hours can be limited — many stick to business hours, and close on weekends or public holidays. You may also be required to present identification, such as a passport, for the transaction. Not all providers will be transparent: smaller or independent shops may advertise attractive rates but add hidden fees during the exchange. Always ask for the final amount you’ll receive after all fees are applied.
This option is best for those who have time to shop around and compare rates, or for those needing to exchange a moderate to large amount of cash.
Your Bank at Home: Safe, Familiar — But Costly
Some travellers may prefer to handle currency conversion before they leave. It feels safer, and in some cases, it’s more practical. However, it’s rarely the best option in terms of cost.
Pros:
You’re on home turf and dealing with a trusted provider. Some banks even offer currency delivery services or in-branch pickup for orders. Many also have “buy-back” programs, letting you sell unused currency after your trip. If you want peace of mind and a bit of cash in your pocket on arrival, this is a convenient option.
Cons:
Exchange rates at your home bank are almost always worse than what you’d get abroad. You may also need to order currency in advance — especially for less common currencies — and wait several business days for it to arrive.
If you go this route, exchange only a modest amount — enough for initial expenses like transport, tipping, and snacks. Handle larger conversions once you arrive at your destination.
Bonus: What to Do With Leftover Local Currency
Maybe you overestimated how much you’d need or didn’t get the opportunity to spend those last few bills. Either way, it’s worth knowing what to do with leftover foreign cash.
Best practice: Convert it before you leave. Once you're home, your options may be limited — especially for lesser-known currencies. Many banks back home don’t handle obscure notes, and if they do, the rates may be poor. Airport counters — once again — offer some of the worst rates around.
That said, if it’s only a small amount, spend it: grab a snack, pick up a souvenir, or stash it away for a future trip. Keeping a little cash from a frequently visited country is also practical.
There’s no single best way to get local currency — it depends on your destination, your needs, and the options available to you. But there is always a smarter way to go about it.
Use a fee-free credit card wherever possible. For cash needs, bank-operated ATMs at your destination usually offer the best mix of convenience and fair exchange rates. Airport foreign exchange counters can help in a pinch, but should not be your primary plan.
It also never hurts to pre-arrange for your needs before you depart — whether that’s arranging to arrive with a modest amount of local currency (leaving larger conversions until you’re on the ground) or securing your connectivity with a travel eSIM or SIM card from SimCorner. Arriving in your destination country instantly connected allows you to find nearby ATMs, check real-time exchange rates, contact your bank in case of emergencies, and access mobile payment platforms. Additionally, if you’re going on a multi-country trip, travel eSIMs or SIM cards with regional coverage, like a Europe eSIM, ensure uninterrupted connection.
A little preparation means fewer surprises, smoother travel, and more of your money going toward the trip — not avoidable costs.
