Laws that might affect your money exchange in 2025

Getting your money abroad is getting more complex in 2025 as countries implement new financial regulations and tourist entry requirements. Major changes to currency controls, tourist taxes and digital payment systems mean travelers need to plan differently for accessing and exchanging money overseas.

The story isn’t just about exchange rates anymore. Countries are overhauling how visitors access local banking services, verify their identity for transactions and pay tourist fees. From the U.K.’s new entry authorization system to expanded biometric requirements for financial transactions in the EU, these shifts affect everything from ATM withdrawals to credit card payments.

New entry requirements affect banking access

The U.K. leads significant changes in how travelers access financial services abroad. Starting Jan. 8, 2025, visitors from the U.S. must obtain an Electronic Travel Authorization (ETA) before entry. This authorization, which costs 10 pounds ($13), doesn’t just affect your ability to enter the country — it’s also linked to your ability to use local banking services and ATMs.

Europe follows with similar requirements through its European Travel Information and Authorization System (ETIAS),launching around May 2025. The 7-euro ($7.25) authorization introduces new verification steps for financial transactions, particularly at ATMs and bank branches throughout the Schengen Area.

Tourist taxes reshape travel budgets

Beyond entry fees, new tourist taxes affect how much cash travelers need on hand. Greece’s daily tourist tax doubles to 8 euros ($8.40) during peak season, while islands like Santorini implement special 20-euro fees for cruise passengers. Venice’s visitor tax returns for 54 specific days between April and July, requiring advance payment and registration.

Spain’s regions introduce varying fees:

• Galicia implements taxes between 1 and 2.50 euros daily.
• Tenerife adds charges for accessing natural areas.
• Alicante increases entry fees for cultural sites.
• Seville introduces new plaza access charges.

Dollar outlook shapes exchange strategy

The U.S. dollar looks to stay on top of global currency markets in 2025, with exchange rates favoring American travelers across most destinations. While this means more spending power abroad, you’ll still need to strategically time your exchanges. Banks regularly beat airport exchange rates by 5 to 10 percent — meaning an extra $50–$100 in your pocket when exchanging $1,000.

Bank exchange desks operate differently in 2025. Major U.S. banks now often require advance notice for large currency exchanges, typically two to three business days. While this extra planning step might seem inconvenient, it often means securing better rates than walking in for same-day service.

Digital verification changes banking access

Starting May 7, 2025, you’ll need a Real ID to access currency exchange services at U.S. airports. Look for a star in the upper corner of your license — without it, you might face issues not just at security but also at airport bank branches and exchange counters.

The biometric screening you’re used to at TSA now extends to financial services. Delta and United already use facial recognition for lounge access and purchases, with American Airlines rolling out similar features. If you’re enrolling in TSA PreCheck or Global Entry early in 2025, your biometric data will automatically link to these payment systems.

Cross-border transaction requirements

Europe’s new Entry/Exit System means your first ATM withdrawal might take longer than expected. Instead of just inserting your card and PIN, you’ll need to complete biometric verification at your first European bank visit. The upside? Once verified, subsequent transactions become nearly instant.

China’s expanded visa-free program for 24 provinces sounds great but comes with banking restrictions. You’ll need proof of onward travel before accessing most ATMs or bank services, and some regions limit daily withdrawal amounts for short-term visitors.

Hidden costs and fees to watch for

Tourist taxes hit your wallet differently in 2025. Venice charges 5 euros if you book your visit four days ahead, jumping to 10 euros for last-minute arrivals. In Greece, island hopping gets pricier with Santorini and Mykonos adding a 20-euro cruise passenger fee during high season.

Spain’s regions roll out various new charges:

• Asturias lets individual towns set tourist taxes — check local rates before booking.
• Galicia caps tourist fees at five days, making longer stays more economical.
• Tenerife adds separate charges for national parks and beaches.
• Alicante increases museum and castle entry fees.

Bank ATM partnerships keep shifting too. While some U.S. banks still reimburse international ATM fees, they’re getting pickier about which foreign banks qualify. Charles Schwab maintains its popular global ATM fee rebate program, but others now cap monthly reimbursements.

Digital payment evolution

If you’re headed abroad in 2025, expect your payment options to look different than even a year ago. Major airports now use facial recognition for everything from checking bags to buying coffee. Delta and United already use this tech for payments at their lounges and shops, with American Airlines joining the rollout early in the year.

Navigating digital payments abroad

Before you lock in those 2025 travel plans, take a few practical steps to avoid financial headaches. Start by exchanging money through your bank before departure — you’ll beat airport rates by 5-10 percent. For destinations with new tourist taxes like Venice or Greece’s islands, pre-pay these fees online when possible. Not only do you often get better rates, but some cities like Venice charge double for last-minute payments.

Forget puzzling over bills in foreign languages — more European shops now display prices in multiple currencies on digital screens at checkout. Although this can be convenient, this usually involves dynamic currency conversion. Stick with paying in local currency for the best rates.

The tech you’ll encounter varies widely. London’s Heathrow and Frankfurt’s terminals now use fully automated currency exchange kiosks with biometric verification, while smaller airports still rely on traditional exchange counters. If you’re connecting through major hubs, you’ll typically find better rates at these automated services.

Smart strategies for 2025 travel

Planning a multi-country European trip? The new ETIAS system affects more than just entry — it impacts how much cash you can withdraw and where you can exchange money. Apply at least three weeks before departure to ensure your banking access is sorted.

Tourist taxes now hit your wallet in new ways:

• Venice requires pre-registration and payment through its app.
• Greece’s island fees must be paid separately from hotel bills.
• Spain’s regional taxes often can’t be bundled with tour packages.
• Portugal’s new trail fees require a digital payment system.

Smart travelers are front-loading more currency exchanges before departure. While carrying large amounts of cash isn’t ideal, having enough local currency for your first few days helps avoid emergency exchanges at airport rates. Consider exchanging about $300–$500 worth of local currency before departure — enough to cover transportation and initial expenses without carrying too much cash.

Next steps

Navigating money abroad in 2025 means dealing with more than just exchange rates. From Europe’s new entry requirements to expanding tourist taxes, the way you access and spend money while traveling will undoubtedly change and evolve. While some changes add complexity, planning ahead can help you avoid most financial headaches.

Start by checking entry requirements — these increasingly affect your banking access abroad. Get your Real ID sorted, apply for necessary travel authorizations like ETIAS or UK’s ETA, and verify your cards will work with new verification systems. Consider exchanging some money before departure to avoid airport rates, but don’t overdo it. A few hundred dollars worth of local currency typically suffices for initial expenses.

Frequently asked questions

• When is the best time to exchange money in 2025?

  Early in the week, typically Monday or Tuesday, offers more stable exchange rates. Exchange money through your bank two to three days before departure — you’ll get rates 5 to 10 percent better than airport kiosks. If you need additional cash abroad, use bank ATMs during regular business hours when exchange rates tend to be most favorable.

• Is it better to exchange currency in the U.S. or abroad?

  For your initial travel money, exchange at your local bank before departure. For additional funds, use international bank ATMs rather than exchange kiosks. Most U.S. banks partner with specific foreign banks for better rates — check which ATM networks your bank recommends in your destination country.

• How can I avoid currency conversion fees?

  Use credit cards that don’t charge foreign transaction fees for large purchases and stick with bank ATMs for cash withdrawals. Always choose to pay in local currency when offered a choice — dynamic currency conversion typically adds 3 to 4 percent to transactions. Some banks, like Charles Schwab, reimburse international ATM fees, making them particularly valuable for frequent travelers.