If you’ve ever tried to convert Colombian pesos (COP) to US dollars (USD), you probably wondered: “How much does it actually cost me, beyond the exchange rate?” This article breaks down where the fees hide, what’s fair, and how the process really works—backed by personal experience, expert opinion, and current regulations. Whether you’re traveling, sending money, or running a business, you’ll leave knowing what to expect and how to avoid common traps.
Let’s start with the most direct route: you walk into a Colombian bank or a casa de cambio (currency exchange house), hand them a wad of pesos, and ask for dollars. Simple, right? Well, not quite.
Here’s what happened to me last summer: I went to a Bancolombia branch in Bogotá, thinking I’d convert 1,000,000 COP. The teller checked the rate on their screen (which, by the way, was already about 3% worse than the day’s official rate on xe.com). Then she told me there’d be a commission of 2% on top. That’s 5% gone before I ever touched a dollar bill.
I actually took a photo of the receipt (blurred the account number, of course). It showed:
Maybe you decide to skip the teller and just use an ATM. This is where things get sneaky. Most Colombian ATMs will let you withdraw USD if your card is international, but they rarely tell you the real exchange rate until after you complete the transaction.
I once used my US debit card at a Davivienda ATM in Medellín. The screen said nothing about a fee, but my bank statement later showed a 3% “foreign transaction fee” AND the ATM rate was almost 4% worse than the market rate. So, for every $100 I withdrew, I lost about $7 in hidden fees.
Key tip: Always check with your home bank—some (like Charles Schwab or Revolut) refund ATM fees, but the exchange rate markup is another story. Here’s the US Consumer Financial Protection Bureau on international card fees.
Now, what if you use an app like Wise (formerly TransferWise), Western Union, or Remitly to send money from Colombia to the US? These platforms are famous for being transparent, and in my experience, they do show you the exact rate and fee before you hit send.
For example, I recently tested Wise: for 1,000,000 COP, they quoted a rate of 1 USD = 4,050 COP (about 1.2% worse than xe.com) and a fixed fee of 17,000 COP (~$4.20 USD). That’s about 2% in total, which is better than banks, but still not “fee-free.”
Remitly and Western Union are similar, but sometimes add a “service fee” for instant delivery. Always check the total you’ll receive, not just the rate.
A quick warning: never exchange money at airports or hotels unless you absolutely have to. I once exchanged 200,000 COP at Bogotá’s El Dorado airport “just in case”—and the rate was 10% worse than the market, with a 10,000 COP fee on top. I literally lost two taxi rides’ worth in a single transaction. Forums like TripAdvisor are full of similar complaints.
According to the Superintendencia Financiera de Colombia, all exchange houses and banks must clearly state their commissions and rates. However, “clearly” can be subjective—often you’ll only see the final numbers after the transaction.
Internationally, the OECD Principles on Cross-Border Remittance Services require transparency on fees and exchange rates, but not standardization. That’s why your experience can vary wildly depending on the provider, even though the law says you should be informed.
For US banks, the TILA-RESPA Integrated Disclosure Rule (CFPB) also demands clear fee disclosures for foreign exchange.
Let me give you a quick scenario. Imagine you’re a small exporter in Colombia, getting paid in USD by a US importer. You want to convert that USD to COP to pay your workers. The bank in Colombia will ask for “verified trade documents” to comply with anti-money laundering rules. But here’s the twist: the US side might use a different documentation standard, leading to delays or requests for extra paperwork. US Trade Representative reports highlight these regulatory mismatches as a common headache.
I once spoke to an export compliance officer in Barranquilla who said: "We often spend more time clarifying document names than on the actual transaction. The US wants IRS forms, Colombia wants DIAN approvals. If you don’t double-check, your transfer sits in limbo.”
| Country | Standard/Name | Legal Basis | Governing Body |
|---|---|---|---|
| Colombia | Certificado de Cambio | Decreto 1197/2020 | Superintendencia Financiera, DIAN |
| USA | Foreign Bank and Financial Accounts Report (FBAR) | Bank Secrecy Act | FinCEN, IRS |
| EU | EU AMLD5 Documentation | EU AML Directives | European Banking Authority |
You’ll notice that even the name of the required paperwork changes by country. This isn’t just a bureaucratic headache; it can delay your conversion and add to your costs.
Based on everything above (and more than a few frustrating afternoons comparing receipts), here’s my quick advice:
A final warning: if someone promises “no fees” or a “perfect rate,” read the fine print. There’s always a catch—sometimes in the rate, sometimes in the paperwork, sometimes in the time you waste.
Converting COP to USD is rarely free or simple, but if you know where to look, you can minimize your losses. From banks to apps to old-school casas de cambio, every option has a fee—sometimes hidden, sometimes not. Regulations in Colombia and the US demand transparency, but real-world practice varies. For business users, international standards add another layer of complexity.
My bottom line: treat every currency exchange like a negotiation. Don’t rush, compare options, and keep copies of every receipt. If you get stuck with a bad rate, at least you’ll know exactly how it happened—and hopefully, you’ll do better next time.
For further reading, see: