Currency Exchange

The simple definition for currency exchange is a business that provides a variety of services for a small fee. But if we were to take a closer look at currency exchanges, we would find that this unusual “business” is more than just a currency exchange to many people. For some, a currency exchange is a decent alternative to a bank and for others it serves as a post office, DMV, loan service, money transfer, bill payment center, fax or copy center, and even a place to purchase a cell phone, calling cards, or car insurance!

Currency Exchange Services

Currency exchanges provide a variety of services similar to a bank such as check cashing and money orders. If you just need stamps, a visit to the local currency exchange can save a trip and the hassle of visiting the post office. Keep in mind that in most urban areas, currency exchanges outnumber post offices. Most currency exchanges offer Moneygram services for both local, long-distance, and overseas wires as well as bill payment options such as “quick collect.” Most utility companies work with currency exchanges to provide convenient bill payment options and you may also purchase city stickers, renew your plates, and handle other minor DMV requirements at a currency exchange.

Additional Services

Not all, but most currency exchanges offer payday loans to customers as well as limited fax services, copy services, and insurance services. It is not uncommon to find a “cheap” alternative to the most popular car insurance carriers at your local currency exchange. With the ever increasing popularity of cell phones, currency exchanges jumped on the bandwagon years ago by offering “prepay” cellular phones to customers as well as local, long distance, and international calling cards. With prepay cell phones, customers will simply purchase their minutes at the currency exchange and there's no need to sign a contract.

Currency Exchange Fees

For the most part, currency exchanges will charge very small fees for their services. For check cashing, depending on the amount, customers may be charged a flat fee or a small percentage of the total amount of the check. For services such as stamps, faxes, copies, and money orders, fees may range from a few cents to a few dollars for faxes and copies, depending on page count. Moneygrams and DMV costs are determined by Moneygram or the DMV, plus whatever the currency exchange may charge to expedite your request. Payday loan fees are typically set by the loan provider that the currency exchange works with. The fees for payday loans are an exception. They may range from moderate to “outrageous” depending on the provider.

Advantages and Disadvantages of Currency Exchanges

There are many advantages to using a currency exchange instead of say, your local post office, DMV, or bank. One major advantage is convenience as most currency exchanges are open much later than regular business hours. In many cities, currency exchanges are open late 7 days a week. Many are even open 24 hours a day, 365 days a year. In addition, currency exchanges are seen as veritable “one-stop shops.” If you have to pay your electric bill, buy a book of stamps, cash your payroll check, purchase a roll of quarters, and make a few copies, you can do it all in one place. While there are many advantages to using a currency exchange, there are also disadvantages. If you use a currency exchange on a regular basis, the “small” fees can add up pretty fast. In addition, currency exchanges don't provide full postal, copy, and DMV services. Much like banks, currency exchanges have their “peak” times as well, typically Fridays and Saturdays.

By Michelle Burton