Open Forum → Currency exchange locations ?

My parents just returned from the UK and "forgot" to exchange their British Pounds to US Dollars before they left (or at Cincinnati airport when they returned). They've contacted local banks in Lima OH and they're only offering $1.86 per Pound vs the current rate that's $2.02 to $2.06 plus a transaction fee. Dayton's airport doesn't offer currency exchange (anymore ... I'm positive they used to but it's understandable that they no longer do). Cincinnati's airport's currency exchange is run by Fifth Third bank, which is one of the local banks they contacted.

I just called my credit union, Wright-Patt Credit Union, which serves Air Force personnel as well as the general public, but they don't. Thought that was odd given that air force people travel internationally.

When I do a search for "currency exchange dayton ohio", I get lots of results for those check-cashing type places, I think, so I'll bet their fees are outrageous. I do get some results for Marriot Hotels. I'll call them shortly.

Any other ideas ?

American Express Travel has offices in many larger cities. They should have much better exchange rates and fees than a check place.

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Unfortunately, currency exchange is done purely as a "service" at the exchanger's discretion... they're under no obligation to accept anything that's not "legal tender" in that jurisdiction. Larger banks will usually do exchanges, but unless they're located in a major "port-of-entry" city corresponding to a lot of international travel from the nation-of-interest, they'll do exchanges only reluctantly - that is, only for a fairly high direct fee and a low-ball exchange rate. In my case, only one of the local banks that I use will even perform an exchange out of foreign currency, and they'll only do it if you're already a customer of theirs and only if at least $50US-equivalent is involved to make it worth their bother.

The way it was explained to me by that bank is that currency exchange is very unlike transactions occurring strictly in US currency, where money values generally flow electronically for almost immediate redemption. Instead, when they exchange foreign currency for a customer, the bank's own money gets tied up in that foreign currency until its final redemption.

In most cities that aren't major ports-of-entry, foreign money has to be physically forwarded by a bank to some central exchange for redemption into physical US currency, often traveling first through the bank's own central or district office (often in some distant city) for clearing and bundling with other parcels of currency from the same nation. Next, in some cases, the physical redemption may only be possible at the central bank within the foreign nation, but usually currency traders will perform physical redemptions on the side, especially for major currencies. In any case, the result is that the bank's cash may be tied up for days before your particular parcel of foreign currency actually gets physically redeemed by the bank at any some final currency-exchange point at whatever the then-current exchange rate happens to be. To cover possible currency-value fluctuations in the meantime, banks may quote you an exchange rate representing the lowest exchange value occurring during a prior period, eg: a month or two-week period or they may simply low-ball the exchange quote given you in order to build in a safety margin (for them). Then they levy their exchange fee on top of that. Their exchange-rate 'quote' covers their currency risk during the full likely period the money's in their hands, and their 'fee' covers all the actual book-keeping and forwarding costs.

Try calling around to the largest (nationally-linked) banks in your area to see if there's a better exchange deal... some banks move a lot more foreign exchange than others and their rates might be more favorable. But don't expect local banks or credit unions to provide much in the way of exchange services.

My personal rule-of-thumb is to exchange all currency back into US before I leave a foreign country, or at an airport major-bank branch at my port-of-entry into the US (if I know there's one there). If I forget and unless the amount involved is fairly large (in which case, I'll simply eat the lousy local bank's exchange rate and fees), I just consider the foreign stuff I've brought back to be mere souvenirs for handing out to kids.

How much cash did they "forget" to exchange ?

Currency exchange isn't a fixed value, the numbers you may see printed in the paper are for VERY large exchanges, it can and usually does change daily.

Have you investigated the "fee" associted with exchanges at places other than Banks? $.20/Dollar may not be too unreasonable.

Yeah, I realize that no "person" gets the published exchange rates ($2.06 to one British Pound today) but after talking to my neighbor, who travels internationally a lot, he said what local banks will give is still a crime. He said larger airports like Atlanta, JFK, Dulles, and so on are where to do this at. In fact, this same neighbor offered to exchange it for him during a trip he's going on. He'll take their British Pounds, exchange it to USD, and use that for his "traveling money". When he returns, he'll give them cash from his own bank. Needless to say, my neighbor said he couldn't do the full amount but he'd do part of it. He did say that he'll be traveling to Washington in about two months and he'd do it all then for them. He won't take this amount of cash out of the country.

Turns out it's a decent amount of cash. They were born and grew up in Northern Ireland and before coming to Canada and then the US, they worked. This is part of their pension, gov't provided, sitting in a bank over there...

At this point, I'm not sure if they "forgot" or were trying to take advantage of exchange rates. Looking at a 5-year history of GBP to USD rates, my Mom ain't dumb. She was trying to convert it at the highest rates it's been at in 5 years.

I share your experience and more! I'm expecting a sizeable refund check from the Canadian Govt in Canadian Dollars. My previous experience with a smaller refund check from their equivalent of a "State" govt was indeed painful. But more than the lousy exchange rate (National Ciry claimed that they did not charge a transaction fee), the 6-8 weeks that they routinely hold the money in a "loss prevention" status was more frustrating because I feel that they got the money within days. I am working diligently to avoid the same experience, even considering an overnight or 1-2 day trip to Canada or Detroit or another departure city or border crossing for an in person conversion. Did you know that Canadian Banks are required to cash any check up to $1,500 drawn on the Canadian Govt presented in person, whether or not the preenter is an existing customer? Unfortunately, in this case, the check well exceeds that amount and I could not get the Cnadian Govt to issue the refund in multiples less than $1,500 (although they do offer the option at filing to receive the refund in US Dollars).

You could try Windsor as I'm sure they've got exchange places. A Canadian bank may be no better than a US bank as they deal in Canadian dollars, not US dollars. Problem in border cities like Windsor or Niagra Falls is that almost every place on the Candadian side takes US currency so the need to convert it to Canadian currency isn't too great.