‘兑换’ is a verb meaning 'to exchange'—most commonly used for currency (e.g., exchanging US dollars for Chinese yuan at a bank or airport), but also for redeeming vouchers, coupons, points, or gift cards. The first character 兑 (duì) originally meant 'to match' or 'to fulfill', and the second character 换 (huàn) means 'to change' or 'to replace'. Together, they convey the idea of substituting one thing for another under agreed terms. This word implies a formal or official transaction, often involving institutions like banks, exchange counters, or loyalty programs.

It is not used for casual swaps between friends (for which you’d use 换 or 交换), nor for converting units (e.g., meters to feet, which uses 换算). ‘兑换’ typically requires an object — e.g., 兑换外币 (exchange foreign currency) or 兑换积分 (redeem points) — and is frequently followed by 把 or 在 to specify what is exchanged or where.