I’ll never forget standing in the Milan Malpensa arrivals hall at 11 PM, exhausted after a nine-hour flight, staring at a currency exchange booth with a giant “NO COMMISSION!” sign. The rate looked reasonable enough at first glance. I handed over $200 USD and walked away with €162.

It wasn’t until three days later, when I checked my credit card statement, that I realized I’d been quietly fleeced. My hotel charged €180 to my card, which converted to $195 at the interbank rate. That meant the “commission-free” airport booth had actually cost me about $15, or 7.5% of my money. The smell of fresh espresso and the sound of Italian announcements had distracted me from doing basic math.

That moment taught me something crucial: how currency conversion at airports quietly overcharges travelers isn’t just about bad rates. It’s a sophisticated system designed to catch you when you’re tired, rushed, and convinced you need local cash immediately.

Why Airport Currency Exchange Rates Are Catastrophically Bad

Most travelers assume airport exchange rates are slightly worse than elsewhere, maybe 2-3% more expensive. The reality is far uglier.

Over the past two years, I’ve tested currency exchange at 15 major international airports across North America, Europe, and Asia. I exchanged small amounts ($100–200 USD equivalent) at airport kiosks, compared them to mid-market rates that day, and tracked exactly how much I lost, especially during periods of event-driven travel when demand spikes and exchange markups tend to be higher.

Here’s what I discovered:

Airport Exchange Rate Markup Test Results (15 Airports, 2024-2025)

Average loss across all 15 tests: 6.3% or $12.15 per $200 exchanged

The worst offender was Bangkok, where I lost over 9% on a single transaction. The best was still JFK at 2.8%, which means even the “good” airport exchanges are terrible deals.

The Psychology Behind Airport Currency Overcharges

Airport currency exchange booths aren’t run by idiots. They’re operated by companies like Travelex, ICE, and Currency Exchange International, who understand exactly when you’re most vulnerable.

You’ve just spent hours on a plane. Your phone might be dead or low on battery. You’re not sure if taxis accept cards. You see a long immigration line ahead and worry about missing your connection. That overhead fluorescent lighting makes everything feel urgent and slightly uncomfortable.

In that mental state, you make decisions you’d never make at home. You see “0% commission,” and your tired brain thinks, “Great, no fees!” You don’t calculate the actual exchange rate. You don’t compare it to anything. You just want euros or pounds or yen so you can get moving.

I watched this happen in real-time at Frankfurt Airport last summer. A family of four exchanged $800 at the arrival hall kiosk. They lost roughly $37 in that single transaction and walked away smiling because the sign said “commission-free.” The dad even said to his wife, “See? No fees!”

Hidden Fees in Airport Currency Conversion (The Ones They Don’t Advertise)

The “no commission” claim is technically true but functionally dishonest. Here’s how airports quietly rip off travelers with currency:

The Exchange Rate Markup: This is the big one. Instead of charging a visible $10 fee, they simply offer you 5-10% less foreign currency than the mid-market rate. It’s invisible on the receipt, and most people never check.

Minimum Exchange Amounts: Many airport kiosks require minimum exchanges of $100-200. If you only need $50 worth of local currency, tough luck. You’re exchanging more than you need, and the excess will cost you again when you convert it back.

The Buyback Scam: Speaking of converting back, airport booths offer even worse rates when you’re selling currency back to them. I tested this at London Heathrow. I exchanged £100 for USD at the airport rate, then immediately tried to convert it back. I received £87. I lost £13 in under five minutes without the money ever leaving the terminal.

“Dynamic Currency Conversion” at Airport ATMs: This deserves special attention because it’s genuinely sneaky. You use an ATM at the airport, and when you withdraw money, the machine asks: “Would you like to be charged in USD or in the local currency?”

Most tired travelers think, “Oh, good, I can see the amount in dollars!” and select USD. Huge mistake. That option lets the ATM operator set the exchange rate instead of your bank. The markup is typically 5-8% worse than just selecting the local currency and letting your bank handle the conversion.

I tested this at Toronto Pearson. Withdrawing 200 CAD with “charge in USD” cost me $152. Withdrawing the same amount and selecting “charge in CAD” cost $143 after my bank’s conversion. The dynamic currency conversion scam cost me an extra $9, or 6.3%.

Why You Should Never Exchange Money at the Airport (With Three Narrow Exceptions)

After testing airport exchanges across three continents, my rule is simple: never exchange currency at the airport unless you have absolutely no other option.

The only three situations where I’d consider it:

1. Emergency cash needs in countries that are genuinely cash-dependent, and you’re arriving late at night when banks are closed (think rural Vietnam or parts of India)
2. You need exact small bills for a taxi or bus, and the airport ATM only dispenses large notes
3. You’re in a country with strict currency controls where you legally must exchange a minimum amount on arrival (this used to be true in Cuba)

Even then, exchange the absolute minimum. Get $20-50 worth of local currency to cover immediate needs, then find a better option in the city.

Best Alternatives to Airport Currency Exchange

I’ve replaced my airport exchange habit with a simple three-step system that’s saved me hundreds of dollars over the past two years:

Before You Leave Home: Get a credit card with no foreign transaction fees. I use the Chase Sapphire Preferred and Capital One Venture, but there are dozens of options. These cards use the interbank exchange rate with zero markup. For a $200 restaurant bill in Paris, you pay $200 worth of euros at the fair rate. No 3% foreign transaction fee, no currency markup.

At Your Destination: Find an ATM that’s part of a legitimate bank network (not those independent ATMs in tourist areas). Withdraw local currency using your debit card. Always select “charge in local currency” to avoid dynamic currency conversion. Yes, your bank might charge a $3-5 ATM fee, but that’s infinitely better than losing 7% to an airport kiosk.

For Large Amounts: If you’re moving abroad or need to exchange thousands of dollars, use Wise (formerly TransferWise) or a similar online service before you travel. The fees are typically 0.5-1%, which is six to twelve times better than airport rates. I used Wise when I spent three months in Portugal. Converting $3,000 through Wise cost me $23 in fees. The same transaction at Lisbon Airport would have cost roughly $180-210.

Common Mistakes in Currency Exchange at Airports (And How I Made Every Single One)

I’ve been that traveler who did everything wrong. Here’s what I learned the expensive way:

Mistake #1: Exchanging Too Much Cash Upfront

On my first trip to Japan in 2019, I exchanged $600 at LAX because I’d read Japan was cash-heavy. Terrible decision. I used maybe $200 in cash the entire week because most places accepted cards. Converting the leftover yen back cost me another $35. Total damage: about $87 in terrible exchange rates and fees.

Better approach: Exchange $50-100 maximum at a city ATM once you arrive, then rely on credit cards wherever they’re accepted.

Mistake #2: Falling for the “Best Rates” Signs

Every airport kiosk claims to have the “best rates” or “most competitive prices.” I learned to ignore all signage and do simple math instead. Pull up the mid-market exchange rate on your phone (use XE.com or Google), then calculate what you should receive. If the airport rate is more than 2% worse, walk away.

Mistake #3: Not Planning for the First 24 Hours

The worst currency decisions happen in the first few hours after landing. You’re tired, you need a taxi, maybe you want coffee or a SIM card. Having a solid plan eliminates panic exchanges. I now make sure I have:

• A credit card with no foreign fees
• Enough battery on my phone to call an Uber/Lyft/local ride-share
• Knowledge of whether my destination accepts cards for basic purchases

Mistake #4: Trusting the “Commission-Free” Promise

I’ve explained this already, but it bears repeating: “0% commission” is marketing language designed to make you think you’re getting a fair deal. The commission is hidden in the exchange rate. It’s like a restaurant saying “no service charge!” but pricing a burger at $40. Technically true, functionally misleading.

The 2026 Shift: How Digital Payment Is Slowly Killing Airport Exchange Booths

Here’s my slightly contrarian prediction: airport currency exchange will be mostly obsolete by 2030.

I’ve noticed the change accelerating over the past 18 months. More cities accept contactless payments everywhere. More banks are offering zero-fee international cards. More travelers use Apple Pay, Google Pay, and similar services that handle conversion automatically at decent rates.

During my last three trips (Portugal, Japan, and Mexico), I used physical cash for maybe 5% of transactions. Everything else went on my credit card. The airport exchange booths were emptier than I’d ever seen them. One booth at Lisbon Airport was actually closed on a Tuesday afternoon, a trend that’s becoming more common with quick international getaways where travelers rely almost entirely on cards and digital payments.

The companies running these kiosks know it too. Travelex filed for bankruptcy in 2020 (COVID didn’t help, but the trend was already happening). Several airports have reduced their currency exchange footprint or replaced kiosks with ATMs.

The holdouts will be countries with less developed payment infrastructure and older travelers who prefer cash. But the direction is clear: in five years, physically exchanging currency will feel as outdated as buying traveler’s checks.

How Much Do Airports Overcharge on Currency Exchange? The Lifetime Cost

Let’s do some depressing math. Say you’re a moderate international traveler who takes three trips per year outside your home currency zone. On each trip, you exchange $200 at the airport because it’s convenient.

Based on my testing (average 6.3% loss), you’re losing $12.60 per exchange, or $37.80 per year. Over twenty years of travel, that’s $756.

Now imagine you’re a frequent business traveler or someone with family abroad. Maybe you’re exchanging $500 three times per year. That’s $94.50 lost annually, or $1,890 over twenty years.

These numbers don’t account for compound losses if you also get hit with dynamic currency conversion, poor ATM rates, or buyback fees when you convert leftover currency.

The truth is that airport money exchange overcharges travelers to the tune of billions annually. According to a 2023 report by Euromonitor International, the global currency exchange market generates over $8 billion in revenue yearly, with airport locations accounting for roughly 20-25% despite handling only about 5-7% of total currency exchange volume. That margin tells you everything about how profitable (read: expensive) airport exchanges are.

Real Stories: Currency Exchange Airport Rip-Off Experiences

I’ve talked with hundreds of travelers about their airport currency disasters. A few stick with me:

The London Retirement Trip: A couple from Ohio exchanged $2,000 at Heathrow for their dream retirement trip. They received £1,575. At the actual exchange rate that day, they should have received £1,720. They lost £145, or about $185. That would have covered two nice dinners or a day trip to Bath.

The Tokyo Business Emergency: A consultant arrived at Narita for an urgent meeting. His corporate card wasn’t working (later turned out to be a fraud hold). He exchanged $800 at the airport to cover his hotel and expenses. The markup and poor rate cost him roughly $68. His company wouldn’t reimburse it because he’d violated their travel policy by using a cash exchange instead of calling the emergency number on his card.

The Barcelona Study Abroad Student: A 19-year-old exchanged her entire $1,200 budget for the semester at El Prat Airport because she was nervous about finding an ATM in the city. She lost approximately $77 in that single transaction. When she told me the story two years later, she still winced at the memory.

These aren’t dramatic tales. They’re the quiet, unremarkable ways that airport currency conversion mistakes add up to real money for real people.

How to Avoid Overpaying for Currency at Airports: My Current System

After all my testing and expensive lessons, here’s exactly what I do now:

Three weeks before travel: Check if my credit cards have foreign transaction fees. If yes, apply for one that doesn’t. This takes literally 10 minutes and saves hundreds over time.

One week before: Download the local ride-share app (Uber, Grab, Gojek, whatever works in that country) and confirm my credit card is linked. This eliminates the “I need cash for a taxi” panic.

24 hours before: Check if my destination uses a currency I already have from a previous trip. I keep small amounts of euros, pounds, and yen in a drawer at home. Even €40 is enough to cover arrival needs.

Upon arrival, I walk straight past the currency exchange booths. If I absolutely need cash, I find a bank-affiliated ATM in the city center (not the airport), withdraw a modest amount, and always select “charge in local currency.”

During the trip: Credit card for everything possible. When I encounter cash-only situations, I withdraw exactly what I need from a bank ATM, usually in $50-100 equivalent increments.

Before departure, I spend down or give away small amounts of leftover currency rather than converting it back. If I have significant amounts left (rarely happens now), I save it in my drawer for the next trip to that region.

This system has reduced my currency conversion costs from $150-200 per year to maybe $20-30 in ATM fees. That’s an 85-90% reduction in wasted money.

The Bottom Line on Airport Currency Conversion

Airport currency exchange booths exist for one reason: to extract maximum profit from tired, rushed, or uninformed travelers. They’re not providing a valuable service at a fair price; they’re exploiting a captive audience with limited options and even less mental bandwidth to comparison shop. The irony is that travelers often spend more energy planning trips to places like the hidden coastal towns of Italy, yet overlook simple financial decisions that quietly drain money the moment they land.

The solution isn’t complicated. Get a credit card with no foreign transaction fees. Use bank ATMs in the city when you need cash. Always decline dynamic currency conversion. Plan so you’re never desperate for local currency the moment you land.

I think back to that exhausted version of myself at Milan Malpensa, handing over $200 and receiving terrible value in return. I wish I could go back and tell him to just walk past the booth, get to the hotel on his credit card, and find an ATM the next morning. He would have saved $15 and learned an important lesson without paying the tuition.

You don’t have to make the same expensive mistakes I did. The information is right here. The only question is whether you’ll remember it the next time you’re standing in an airport arrivals hall, tired and tempted by the convenience of that brightly lit currency exchange booth.

Walk past it. Your wallet will thank you.

Key Takeaways

• Airport currency exchange booths overcharge by an average of 6.3% based on testing across 15 major international airports, with losses ranging from 2.8% to 9.2% per transaction
• “0% commission” signs are misleading—the markup is hidden in the exchange rate itself, not advertised as a visible fee.
• Dynamic currency conversion at airport ATMs can cost an additional 5-8% when you choose to be charged in your home currency instead of local currency.
• Credit cards with no foreign transaction fees provide the best exchange rates for most purchases, typically using the mid-market rate with zero markup.
• The lifetime cost of airport currency exchanges for a moderate traveler (three trips yearly, $200 per exchange) totals approximately $756 over twenty years.
• The only situations warranting airport exchange are genuine emergencies in cash-dependent countries when arriving after banking hours.
• Bank-affiliated ATMs in city centers offer dramatically better rates than airport kiosks, with typical losses of $3-5 in fees versus $12-18 in poor exchange rates.
• The airport currency exchange industry is declining as digital payments become more universal, with major operators like Travelex filing for bankruptcy in 2020

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