You’re standing in front of an ATM in Prague’s Old Town Square. The cobblestones are pretty, the smell of trdelník is everywhere, and you just want some cash for a beer. You stick your card in. The machine asks if you want to convert US dollars to CZK using its "guaranteed" rate. It looks official. It looks safe. Honestly? It’s a total scam.
Currency exchange isn't just about math. It’s a game of hidden margins. If you aren't careful, you’ll lose 10% of your vacation budget before you even take your first bite of goulash. Most travelers think the "mid-market rate" they see on Google is what they’ll actually get at a booth or a bank. It’s not. Not even close.
The Mid-Market Rate vs. The Reality
When you search for the exchange rate, you’re seeing the "interbank" rate. This is what massive financial institutions use to swap millions of dollars with each other. For the rest of us? We pay a premium.
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Banks and exchange offices make money in two ways. First, there’s the flat fee. That’s easy to spot. The second is the "spread." That’s the difference between the buy and sell price. It’s a sneaky, invisible tax. In Prague, some exchange houses (especially those near the astronomical clock) will give you a rate that is 20% worse than the actual market value.
Think about that. On a $500 exchange, you’re essentially handing a stranger $100 for the "privilege" of using their window.
Why the Czech Koruna is a Weird Beast
The Czech Republic joined the EU in 2004, but it hasn't adopted the Euro. People keep asking when it’ll happen. The answer? Probably not for a long time. The Czech National Bank (ČNB) likes its independence. It allows them to control inflation and interest rates without waiting for Brussels to make a move.
Because the Koruna (CZK) is its own thing, it fluctuates differently than the Euro. If the US Federal Reserve hikes interest rates, the dollar gets stronger. If the Czech National Bank decides to tighten its belt, the Koruna climbs. It’s a constant tug-of-war.
A few years ago, the Koruna was famously "pegged" to the Euro to keep it from getting too strong. That cap was removed in 2017, and the currency went wild. Since then, it’s been one of the more volatile but resilient currencies in Central Europe. You can’t just assume it’ll stay the same for your whole trip.
The Dynamic Currency Conversion Trap
If there is one thing you remember from this, let it be this: Never, ever choose "USD" at a foreign ATM or card terminal. This is called Dynamic Currency Conversion (DCC). The machine offers to do the math for you. It says, "Would you like to be charged in your home currency?" It sounds helpful. It’s a trap. When you choose USD, the local bank chooses the exchange rate. And guess what? They aren't picking a rate that favors you. They’re picking one that pads their pockets.
Always choose "CZK" or "Local Currency." Let your own bank back home handle the conversion. They’ll still charge you a bit, but it’ll be significantly less than the predatory rate offered by a random ATM in a tourist trap.
Real Places to Swap Your Money
Avoid the airport. Just don’t do it. The rates at Václav Havel Airport are historically terrible. If you absolutely need cash for a bus or a taxi, take out the bare minimum—maybe 500 CZK.
Once you get into the city, look for reputable places. Honest Guide, a popular YouTube channel run by Janek Rubeš and Honza Mikulka, has spent years exposing the crooks in Prague. They often recommend places like "Exchange" on Kaprova street. Why? Because they actually use the fair market rate.
Check the board. If the difference between the "Buy" and "Sell" price is huge, walk away. A fair spread should be narrow. If you see a sign that says "0% Commission," be suspicious. They usually just hide the fee in a terrible exchange rate.
Modern Alternatives: Revolut and Wise
We don't live in the 90s anymore. You don't need to carry a fanny pack full of $100 bills to a shady window.
Apps like Wise (formerly TransferWise) and Revolut have changed the game for how we convert US dollars to CZK. They use the actual mid-market rate. You pay a tiny, transparent fee, and that’s it.
I use Wise for almost everything. You can hold a balance in Koruna and use a physical debit card just like a local. No math. No stress. If you're sending money to a friend in Brno or paying for a long-term rental, this is the only way to do it without getting ripped off.
Cash is Still King (Sometimes)
Prague is becoming very card-friendly. You can tap your phone for a tram ticket or a coffee. However, if you head out to smaller towns like Kutná Hora or Český Krumlov, or if you visit a traditional pub (hospoda), you’ll see signs that say "Platba pouze hotově"—Cash only.
You need some Koruna.
The coins are hefty. The 50 CZK coin is actually quite beautiful—it’s bi-metallic with a copper center. Don't let them sit in your pocket. Use them for tips or public restrooms, which often cost 10 or 20 CZK.
How to Calculate the Rate in Your Head
The math can be annoying. As of early 2026, the rate usually hovers somewhere between 22 and 24 CZK to 1 USD.
Quick shortcut:
- 100 CZK is roughly $4.50.
- 500 CZK is roughly $22.
- 1000 CZK is roughly $44.
If you see a trdelník for 150 CZK, you’re paying about $6.50. Is it overpriced? Yes. Is it delicious? Also yes. Just knowing the ballpark figure keeps you from making stupid spending decisions.
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Taxes and Refunds
If you spend more than 2,000 CZK in a single shop on things like clothes or jewelry, you might be eligible for a VAT refund. The Czech VAT (DPH) is a whopping 21%. You won't get all of it back because of administrative fees, but you can get a decent chunk.
Ask the shop for a "Tax-Free" form. You’ll need to show this at the airport when you leave the EU. It’s a bit of a hassle, but if you bought an expensive leather jacket or some Bohemian crystal, it's worth the 15 minutes of paperwork.
Practical Steps for Your Trip
Don't wait until you land to figure this out. A little prep goes a long way.
- Call your bank. Tell them you’re going to the Czech Republic so they don't freeze your card the first time you buy a Pilsner. Ask specifically about "Foreign Transaction Fees."
- Download a currency app. XE Currency or even just using Google Search works. Check the rate the morning you plan to exchange money so you know what the "real" number is.
- Carry a backup card. ATMs eat cards sometimes. It happens. Having a second card in your hotel safe is a lifesaver.
- Use "Official" ATMs. Look for banks like ČSOB, KB (Komerční banka), or Česká spořitelna. Avoid the blue and yellow "Euronet" ATMs found on street corners. They are notorious for high fees and aggressive DCC prompts.
- Check the receipt. In the Czech Republic, exchange offices are legally required to give you a receipt. Since 2019, there’s also a law that allows you to cancel an exchange within 3 hours if you feel you were cheated (up to a limit of 1,000 EUR). If you realize you got a bad deal, go back and demand your money.
Navigating the world of currency exchange is mostly about skepticism. If a deal looks too good to be true, it is. If a machine offers to "help" you with the math, say no. Stick to reputable banks and modern fintech apps, and you’ll have plenty of Koruna left over for an extra round of fried cheese.
Moving Forward
- Verify the current mid-market rate on a reliable site like Reuters or the Czech National Bank website before heading to any physical exchange office.
- Prioritize using a credit card with no foreign transaction fees for all major purchases like hotels and dinners.
- Always decline the "convenience" of being charged in USD at local terminals to ensure your home bank handles the conversion at a fair rate.