Prague "0% Commission" Currency Exchange Scam
Central Prague has 100+ currency exchange bureaus advertising "0% Commission" — a technically true but predatory practice. They give you an exchange rate 30-40% worse than the interbank rate, then legally point at the "0% commission" claim. A tourist changing $200 gets 3,000-3,500 CZK when the fair exchange is 4,500-4,800 CZK. Wenceslas Square + Old Town Square + Charles Bridge area are the highest-density scam zones. The Czech National Bank has issued repeated public warnings since 2019.
How the scam works
- 1You need Czech koruna (CZK). You see "0% Commission" + "Best Rates" signs on Old Town Square exchange bureau
- 2Board displays exchange rate: 1 USD = 20 CZK (real fair rate: 1 USD = 22.5-23 CZK). Board rate: for SELLING dollars to them
- 3Actual rate paid to you as customer: 1 USD = 15-17 CZK (buried in small print or explained after you commit)
- 4Some bureaus employ a "no refund after receipt" policy that's legally enforced in Czech Republic since 2019 reform
- 5Legal 2019 fix: customers can now CANCEL within 3 hours of transaction with full refund. Most tourists don't know this.
Red flags — how to spot it early
- ⚠"0% Commission" or "Best Rates" claim without displaying actual paid rate prominently
- ⚠Rate boards showing "SELL/BUY" columns with 20-40% spread
- ⚠Prime tourist location (Wenceslas Square, Old Town Square, Charles Bridge base)
- ⚠No official Chamber of Commerce or Czech National Bank certification visible
- ⚠Cashier who resists showing the "amount you'll receive" in koruna before you commit
How to avoid it
- USE ATMs INSTEAD. Any Czech bank (KB, Česká spořitelna, ČSOB, Raiffeisenbank) — real interbank rate + small ATM fee (usually free with travel cards like Revolut/Wise).
- If you must use exchange: eXchange (multiple branches, publish real rate with the "amount received" prominently displayed) — this is the honest choice
- Use Revolut, Wise, or N26 card for direct spending — no exchange needed for most purchases
- Avoid: Anything on Wenceslas Square (Václavské náměstí), Old Town Square (Staroměstské náměstí), Charles Bridge area
- If tempted: ask "How much CZK will I receive for [amount] USD?" — if answer isn't immediately clear, walk away
If it happens to you
- →IMPORTANT: Under 2019 Czech Consumer Protection reform, you can CANCEL currency exchange within 3 HOURS + get full refund. Return to the bureau + demand cancellation.
- →If they refuse: contact Czech Consumer Protection at coi.cz or Czech National Bank at cnb.cz
- →If credit card was used: dispute charge for "product/service not as described"
- →Report the specific bureau + address to Czech Chamber of Commerce (hkcr.cz) + Prague City Hall
- →Post on r/prague + TripAdvisor Prague — public visibility increased ministry enforcement 2020-2023
Documented in the wild
- ·Czech National Bank issued warnings 2019, 2021, 2023 about tourist exchange scams
- ·Czech Consumer Protection Act 2019 reform specifically added the 3-hour cancellation right due to tourist complaints
- ·Prague tourist advisory now included in Czech Foreign Ministry travel warnings
Frequently asked
Can I cancel a Prague currency exchange after realizing I was scammed?
YES — under 2019 Czech Consumer Protection reform, you have 3 HOURS to cancel any currency exchange transaction + receive full refund. Return to the bureau + demand cancellation. If they refuse: escalate to Czech Consumer Protection (coi.cz).
What is the fair EUR/USD to CZK rate?
Check xe.com or Google "USD to CZK" for real-time rate. Approximately: 1 USD = 22.5-23 CZK. 1 EUR = 24.5-25 CZK. Legitimate ATMs give you this rate minus 1-2% ATM fee. Scam bureaus give you 15-17 CZK per USD.
Are Prague ATMs safe?
Yes — major bank ATMs (KB, Česká spořitelna, ČSOB, Raiffeisenbank, Moneta) are safe + give real exchange rate. Independent street ATMs labeled "Euronet" or "Cash Machine" often have DCC + higher fees. Stick to bank ATMs.
Should I use Revolut or Wise in Prague?
Yes — both give you the real interbank exchange rate + no ATM fees at major Czech banks. Dramatically better than any physical exchange bureau. Also: pay by card directly at restaurants + shops when possible.