So, you're planning an international trip, or perhaps you've just returned with some leftover foreign cash, and now you're wondering, "How much does Bank of America charge to exchange currency?" This is a question many travelers face, and navigating the world of foreign exchange fees can feel like a labyrinth. Don't worry, we're here to shine a light on Bank of America's currency exchange practices, helping you understand the costs involved and how to potentially minimize them.
Let's dive into the specifics, step by step!
Understanding Bank of America's Currency Exchange Landscape
Before we get into the nitty-gritty of fees, it's crucial to understand that Bank of America offers various ways to handle foreign currency, and each comes with its own set of costs and considerations. These include:
- Ordering Foreign Currency (before you travel): Getting foreign cash delivered or picked up.
- Exchanging Foreign Currency for USD (after you travel): Converting leftover foreign cash back to US dollars.
- Using your Debit Card Abroad: ATM withdrawals and purchases.
- Using your Credit Card Abroad: Purchases and cash advances.
- International Wire Transfers: Sending money overseas.
The fees associated with each method can differ significantly, so it's important to consider your specific needs.
Step 1: Are You Preparing for a Trip or Returning Home?
-
Ah, the excitement of travel! Or perhaps the relief of being back home. Either way, dealing with foreign currency is on your mind. Let's start by clarifying your immediate need. Are you looking to buy foreign currency for an upcoming adventure, or sell leftover foreign currency after your journey? This distinction is important because the fees and processes can differ.
- If you're preparing for a trip: You'll likely be interested in ordering foreign currency cash or understanding the costs of using your cards abroad.
- If you're returning home: Your focus will be on exchanging foreign cash back into US dollars.
Keep this in mind as we go through the next steps!
Step 2: Ordering Foreign Currency Before Your Trip (Buying Foreign Currency)
Getting foreign cash before you leave can be convenient for immediate expenses upon arrival, like taxis or small purchases. Bank of America offers this service, but it comes with associated costs.
Sub-heading: Online or Mobile App Orders
Bank of America makes it relatively easy to order foreign currency online or through their mobile banking app.
- Convenience Fee: While Bank of America generally doesn't charge a specific "order fee" for foreign currency, the cost is primarily embedded in the exchange rate.
- Exchange Rate Markup: This is where the bank makes its profit. The exchange rate you're offered will likely be less favorable than the "mid-market rate" (the rate banks use to trade with each other). This difference is essentially a hidden fee. The markup can vary but is generally a few percentage points.
- Shipping Fees:
- Standard delivery typically costs around $7.50.
- Overnight shipping can be around $20.
- Good news for Preferred Rewards members! Depending on your tier level (Gold, Platinum, Platinum Honors, Diamond Honors), you may receive a discount on the exchange rate and have the standard shipping fee waived.
Sub-heading: Picking Up at a Financial Center
You can also opt to pick up your foreign currency at a Bank of America financial center. This might save you the shipping fee.
- Exchange Rate Markup: Similar to online orders, the exchange rate will include a markup.
- Conditions for Pickup: Be aware that there might be conditions for picking up at a financial center, such as minimum order amounts or if you're a new customer (less than 30 days) or have had an address change recently. Orders of $1,000 or more in US dollars might require branch pickup.
Step 3: Exchanging Leftover Foreign Currency for USD (Selling Foreign Currency)
Back from your adventure with some foreign cash jingling in your pockets? Bank of America can convert it back to US dollars, but again, there are costs.
- Financial Center Requirement: You generally need to visit a full-service Bank of America financial center to exchange foreign currency bills (coins are usually not accepted).
- Exchange Rate Markup: Just like when buying foreign currency, the exchange rate when selling will have a markup. The bank will buy the currency from you at a rate that is less favorable than the mid-market rate, allowing them to make a profit. This can sometimes feel like a double whammy if you also paid a markup when you initially bought the currency.
- No Explicit Fees: While there might not be a separate "transaction fee" listed, the less favorable exchange rate is the primary cost.
Step 4: Using Your Bank of America Debit Card Abroad
Debit cards are convenient, but they can be costly for international transactions.
- International Transaction Fee (Foreign Transaction Fee): Bank of America typically charges a 3% international transaction fee on debit card purchases and ATM withdrawals made outside the U.S. This fee is assessed on the converted US dollar amount.
- ATM Operator Fees: When you use an ATM that isn't part of Bank of America's Global ATM Alliance (or a partner ATM), you'll likely incur an additional fee from the ATM operator. Bank of America itself may also charge a $5 usage fee for non-Bank of America ATMs outside the U.S.
- Dynamic Currency Conversion (DCC): Be extremely wary of this! When using an ATM or making a purchase, you might be asked if you want to be charged in the local currency or in US dollars. Always choose to be charged in the local currency. If you choose US dollars, the local ATM operator or merchant will apply their own, often much less favorable, exchange rate, effectively doubling the hidden fees.
Step 5: Using Your Bank of America Credit Card Abroad
Credit cards can be a better option for international spending, especially if you have the right kind of card.
- Foreign Transaction Fee: Many Bank of America credit cards charge a 3% foreign transaction fee on purchases made in a foreign currency or processed by a foreign bank.
- No Foreign Transaction Fee Cards: This is the golden ticket for travelers! Bank of America offers several credit cards that come with no foreign transaction fees, such as the Bank of America® Travel Rewards credit card or the Bank of America® Premium Rewards® credit card. If you travel frequently, obtaining one of these cards can save you a significant amount of money.
- Cash Advance Fees: Using your credit card for cash advances at an ATM abroad is generally very expensive. You'll incur a cash advance fee (often 3-5% of the amount or a flat fee, whichever is greater), and interest will start accruing immediately, often at a higher APR than purchases.
Step 6: International Wire Transfers with Bank of America
If you need to send money to someone overseas, Bank of America offers international wire transfer services. The fees for these are different from typical currency exchange.
- Outgoing Wire Transfers:
- In U.S. Dollars: A fee of around $45 is typically charged for international wire transfers sent in US dollars.
- In Foreign Currency: No wire transfer fee is typically charged if you send the wire in the foreign currency. However, be aware that the exchange rate provided will include a markup, which is how Bank of America profits from the transaction.
- Incoming Wire Transfers: Bank of America may also charge a fee for incoming international wire transfers, often around $15.
- Recipient Bank Fees: Remember that the recipient's bank may also charge fees to receive the wire transfer, further reducing the amount received.
Step 7: How to Potentially Minimize Currency Exchange Costs
Now that you know the costs, let's explore how to be a savvy traveler and reduce them!
Sub-heading: Get a Credit Card with No Foreign Transaction Fees
This is arguably the most impactful step. As mentioned, several Bank of America credit cards offer no foreign transaction fees. If you're a frequent international traveler, applying for one of these cards is a smart financial move. Use it for all your purchases abroad.
Sub-heading: Utilize Global ATM Alliance Partners
If you need cash, try to find an ATM that is part of Bank of America's Global ATM Alliance. These partnerships can help you avoid the non-Bank of America ATM usage fee (typically $5). You'll still likely incur the 3% international transaction fee, but every bit helps!
Sub-heading: Order Foreign Currency Strategically
- Order online/mobile: This is generally more convenient.
- Check Preferred Rewards eligibility: If you're a Preferred Rewards member, take advantage of any fee waivers or exchange rate discounts.
- Consider alternatives for larger amounts: For very large sums, dedicated foreign exchange services might offer better rates than traditional banks, even with their own fees.
Sub-heading: Avoid Dynamic Currency Conversion (DCC)
This cannot be stressed enough. When offered the choice to pay in local currency or your home currency, always choose the local currency. This ensures the conversion is done by Visa or Mastercard (at a generally better rate) and not by the merchant or ATM operator, who will likely use a highly unfavorable rate.
Sub-heading: Don't Exchange at Airports or Hotels
While convenient, airport currency exchange kiosks and hotel front desks offer notoriously bad exchange rates and high fees. Avoid them at all costs unless it's an absolute emergency.
Sub-heading: Limit Cash Usage
Given the potential for ATM fees and less favorable exchange rates on cash, try to use your no-foreign-transaction-fee credit card whenever possible for purchases. Use cash only for small vendors or situations where cards aren't accepted.
Step 8: Always Check the Current Exchange Rate
The exchange rates are dynamic and change constantly. When you're making a transaction, whether online or in person, always verify the current exchange rate Bank of America is offering. You can often find their daily rates on their website or by calling them. Compare it to the mid-market rate (easily found on Google or sites like Xe.com) to get a sense of the markup.
Step 9: Notify Bank of America of Your Travel Plans
While not directly a fee, this is a crucial step to avoid issues. Inform Bank of America of your travel dates and destinations. This helps prevent your card from being flagged for suspicious activity and potentially blocked while you're abroad. You can often set a travel notice through online banking or by calling customer service.
Step 10: Keep Records and Review Your Statements
After your trip or major international transactions, take the time to review your Bank of America statements. Check for any unexpected fees or discrepancies. If something doesn't look right, contact Bank of America customer service immediately.
10 Related FAQ Questions:
How to check Bank of America's current exchange rates?
You can typically find Bank of America's daily exchange rates on their official website under their foreign exchange or international travel sections. You can also call their customer service for the most up-to-date rates.
How to avoid foreign transaction fees on Bank of America debit cards?
Unfortunately, Bank of America generally applies a 3% international transaction fee on debit card purchases and ATM withdrawals outside the U.S. There's no direct way to avoid this specific fee with a standard debit card, but using Global ATM Alliance partners can reduce other ATM fees.
How to get a Bank of America credit card with no foreign transaction fees?
You can apply for specific Bank of America credit cards that offer no foreign transaction fees, such as the Bank of America® Travel Rewards credit card or the Bank of America® Premium Rewards® credit card, through their website or by visiting a financial center.
How to order foreign currency cash from Bank of America?
You can order foreign currency cash conveniently through the Bank of America mobile banking app or online banking website. Simply log in, navigate to the foreign currency section, select your desired currency and amount, and choose your delivery or pickup option.
How to exchange leftover foreign currency back to USD at Bank of America?
To exchange leftover foreign currency (bills only, no coins) for US dollars, you will need to visit a full-service Bank of America financial center.
How to avoid ATM fees when using a Bank of America card abroad?
To avoid some ATM fees, try to use ATMs that are part of Bank of America's Global ATM Alliance network. You can find a list of these partners on the Bank of America website or through their ATM locator.
How to notify Bank of America of my travel plans?
You can typically set a travel notice for your Bank of America cards through their online banking portal or by calling their customer service phone number. This helps prevent your cards from being blocked due to suspected fraud while you're traveling.
How to understand the exchange rate markup charged by Bank of America?
The exchange rate markup is the difference between the "mid-market rate" (the true exchange rate between banks) and the rate Bank of America offers you. This difference is how they profit from the currency exchange. You can compare their offered rate to the mid-market rate found on independent currency conversion websites.
How to send an international wire transfer with Bank of America?
You can send international wire transfers through Bank of America's online banking or mobile app. You will need the recipient's bank details, including their SWIFT/BIC code and account number. Fees vary depending on whether you send in USD or a foreign currency.
How to save money on currency exchange when traveling?
The best ways to save money include using a credit card with no foreign transaction fees, avoiding Dynamic Currency Conversion (DCC), using Global ATM Alliance partners for cash withdrawals, and ordering foreign currency strategically (e.g., online, with Preferred Rewards benefits). Avoid exchanging large amounts at airports or hotels.