Why smart travelers skip the exchange booth and head to the ATM instead

If you’ve ever landed in a new country and rushed to the airport’s money exchange kiosk, you’re not alone—and you’re not alone in paying way too much for the privilege. While those glowing “Currency Exchange” signs might seem like a safe first step on your international adventure, savvy travelers know there’s a smarter move: skip the booth and head straight for an ATM.

Here’s why withdrawing local currency from an ATM is often your best bet—and how to ensure you don’t get scammed.

1. Better Exchange Rates Every Time

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Let’s get the most critical point out of the way first: ATMs usually give you the real exchange rate, not the padded rates that currency exchange shops use to make a profit. When you use your debit card at an ATM, the currency conversion is typically done at the mid-market rate, which banks use to trade money with each other. That means you’re getting a fair and transparent deal, often several percentage points better than what you’d get at an exchange booth.

For example, if the real exchange rate is 18 pesos to 1 USD, an airport kiosk might offer you 16.5 pesos and pocket the difference. That may not sound huge, but over a few hundred dollars, you’re giving away enough to buy yourself a nice dinner or two.

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2. Lower (or No) Fees

Currency exchange counters often charge hidden fees or bake them into their terrible rates. ATMs, on the other hand, are generally more upfront. Yes, you may pay a small fee from the ATM’s local bank and possibly one from your bank—but you’ll often come out ahead even after those.

Pro tip: Before your trip, check with your bank to see if they have global ATM partners. Banks like Charles Schwab, Capital One, or certain credit unions offer low or even no foreign transaction or ATM fees. If you travel often, it might be worth opening an account for this purpose.

3. Convenience and Safety

You don’t need to carry huge wads of cash across borders or worry about losing hundreds of dollars in your backpack. With ATMs on nearly every street corner, you can withdraw what you need when needed. Many international ATMs also allow you to choose your language, making the process simple and secure.

4. One Crucial Button: Always Decline Conversion

Here’s the tip that’ll save you from getting ripped off even at the ATM: when you withdraw money, you’ll often see a prompt asking if you want the ATM to do the conversion. It’ll say something like “Convert to USD at a guaranteed rate” or “Do you want to be charged in your home currency?”

Always decline this offer.

This sneaky tactic is called Dynamic Currency Conversion. It’s basically a way for the ATM’s owner to slap an unfavorable exchange rate on your withdrawal and pocket the difference. By declining the conversion, your own bank will handle it using the fair mid-market rate, and you’ll likely save anywhere from 3% to 10%.

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5. A Few More Tips to Maximize Your ATM Strategy

• Withdraw larger amounts at once to reduce the fees you’ll pay.
• Avoid standalone ATMs in tourist areas (like ones near souvenir shops or bars); stick with machines attached to banks.
• Notify your bank of travel dates so they don’t freeze your card mid-trip.
• Keep a backup card in case your main one gets eaten or doesn’t work.

Airport kiosks and street-corner currency exchanges make money by offering you bad deals in the name of convenience. But in today’s global banking world, getting local currency doesn’t have to come at a premium.

With just a bit of preparation—and knowing which button not to press—you can keep more money in your pocket and spend it where it counts: on the actual trip. And isn’t that what travel is all about?

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