Planning a trip overseas or shopping online from an international store? If you’re an American Express cardholder, you might be wondering, “Does American Express have foreign transaction fees?” It’s a fair question!
What Are Foreign Transaction Fees?
Foreign transaction fees are extra charges added to your credit card bill when you make purchases in a currency other than U.S. dollars or outside the United States.
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These fees are usually a percentage of the transaction amount, typically ranging from 1% to 3%. They cover the cost of converting your purchase into U.S. dollars and processing the transaction through international payment networks.
For example, if you buy a $100 souvenir in Paris with a card that charges a 2.7% foreign transaction fee, you’ll pay an extra $2.70 on top of the purchase.
It might seem small, but these fees can add up quickly, especially on a big trip or frequent international shopping.
Do American Express Cards Have Foreign Transaction Fees?
The answer depends on the specific American Express card you have. Amex offers a variety of cards, and their foreign transaction fee policies vary.
Some cards charge a fee, while others don’t. Let’s look at the details.
Most Amex cards that charge foreign transaction fees apply a standard rate of 2.7% per transaction made in a foreign currency or processed outside the U.S.
However, many of Amex’s premium travel-focused cards waive this fee entirely, making them great choices for international travelers.
To make it clear, here’s a quick breakdown of popular Amex cards and their foreign transaction fee policies.
| Card Name | Foreign Transaction Fee | Annual Fee |
|---|---|---|
| Amex EveryDay® Credit Card | 2.7% | $0 |
| Blue Cash Everyday® Card | 2.7% | $0 |
| American Express® Gold Card | 0% | $250 |
| The Platinum Card® | 0% | $695 |
| Delta SkyMiles® Platinum American Express Card | 0% | $250 |
| Hilton Honors American Express Card | 0% | $0 |
As you can see, cards like the Amex EveryDay and Blue Cash Everyday carry a 2.7% fee, while premium cards like the Gold and Platinum cards have no foreign transaction fees.
If you travel often, choosing a card with no fees can save you a lot.
Why Do Some Amex Cards Have No Foreign Transaction Fees?
Amex’s premium cards, like the Gold, Platinum, and certain co-branded cards (e.g., Delta SkyMiles or Hilton Honors), are designed for travelers.
These cards often come with travel perks like airport lounge access, travel credits, or rewards points for flights and hotels.
Waiving foreign transaction fees is part of the package to make these cards more appealing for international use.
However, these cards often have higher annual fees, so you’ll need to weigh the cost against the benefits.
For example, The Platinum Card has a hefty $695 annual fee but offers perks like up to $200 in airline fee credits and access to over 1,200 airport lounges worldwide.
If you travel frequently, these benefits can outweigh the cost of the annual fee and save you from foreign transaction fees.
How to Avoid Foreign Transaction Fees with Amex
Nobody likes extra fees, so here are some practical tips to avoid or minimize foreign transaction fees when using your American Express card:
- Choose a no-fee card: If you travel often, consider applying for an Amex card with no foreign transaction fees, like the American Express Gold Card or The Platinum Card. Check the terms to confirm.
- Pay in local currency: When shopping abroad, merchants might offer to charge you in U.S. dollars instead of the local currency. This is called Dynamic Currency Conversion (DCC), and it often comes with a high exchange rate markup (sometimes 3-7% more). Always choose to pay in the local currency to get Amex’s exchange rate, which is usually closer to the mid-market rate.
- Use a backup card: American Express isn’t as widely accepted overseas as Visa or Mastercard. Carry a Visa or Mastercard with no foreign transaction fees as a backup to avoid issues at merchants that don’t accept Amex.
- Check your card’s terms: Before traveling, read your card’s terms and conditions to confirm the foreign transaction fee. You can find this on the Amex website or by calling customer service.
- Consider alternatives: If your Amex card has foreign transaction fees and you don’t want to upgrade to a premium card, look into alternatives like the Capital One Venture Rewards Credit Card or Chase Sapphire Preferred, which also have no foreign transaction fees.
Where Is American Express Accepted Abroad?
One thing to keep in mind is that American Express isn’t as widely accepted internationally as Visa or Mastercard.
In the U.S., Amex is accepted at 99% of places that take credit cards, but abroad, acceptance can be spotty, especially at smaller merchants, restaurants, or shops.
Higher-end outlets, hotels, and tourist-friendly businesses are more likely to accept Amex.
To avoid surprises, check for the Amex logo at ATMs or merchant payment terminals before making a purchase.
You can also use the Amex app to find nearby merchants that accept American Express.
Carrying a backup payment method, like cash or a Visa/Mastercard, is a smart move.
Using Amex for Cash Withdrawals Abroad
If you need cash while traveling, using your Amex card at an ATM can be pricey.
For cards that charge foreign transaction fees, you’ll pay the 2.7% fee on cash withdrawals, plus a cash advance fee (often 3% or $5, whichever is higher).
On top of that, interest on cash advances starts accruing immediately, unlike regular purchases, which may have an interest-free grace period.
To save on ATM fees:
- Use ATMs from Amex’s partner banks, like Citibank in Germany or ICBC in China, which may waive certain fees.
- Withdraw larger amounts less frequently to reduce the number of transactions.
- Consider a debit card or a service like Wise, which offers low-fee international ATM withdrawals.
Comparing Amex to Other Options
To see how Amex stacks up, let’s compare it to two popular alternatives for international spending: Wise and Revolut.
Both are digital financial services designed for travelers, offering low fees and competitive exchange rates.
| Provider | Foreign Transaction Fee | ATM Withdrawal Fee | Exchange Rate |
|---|---|---|---|
| American Express (with fee) | 2.7% | 3% or $5 (min) | Amex’s rate (not public) |
| American Express (no fee) | 0% | 3% or $5 (min) | Amex’s rate (not public) |
| Wise | 0% (on card purchases) | Up to $100/month free (2 withdrawals) | Mid-market rate |
| Revolut | 0% (standard plan) | Up to $200/month free | Mid-market rate |
Wise and Revolut often offer better exchange rates and lower fees for international spending.
However, Amex cards come with rewards and travel perks that these services don’t offer, so it’s about balancing cost with benefits.
Tips for Using Amex Abroad
Here are some extra tips to make your Amex card work for you while traveling:
- Update your contact info: Ensure Amex has your current phone number and email in case they need to verify transactions. You don’t want your card blocked for suspected fraud.
- Download the Amex app: It lets you check your balance, find Amex-accepted merchants, and use tools like the Foreign Transaction Calculator.
- Pay bills on time: Late payments can lead to extra fees, which hurt more when you’re already dealing with travel expenses.
- Know your rewards: Cards like the Amex Platinum offer 3x Membership Rewards points on international purchases, which can offset costs if you redeem points wisely.
FAQs: Does American Express Have Foreign Transaction Fees
Q. Which American Express cards have no foreign transaction fees?
A. Cards like The Platinum Card, American Express Gold Card, Delta SkyMiles Platinum, and Hilton Honors American Express Card have no foreign transaction fees. Check the full list on the Amex website.
Q. How can I avoid Dynamic Currency Conversion with Amex?
A. Always choose to pay in the local currency when prompted at a merchant or ATM. This ensures you get Amex’s exchange rate, which is usually better than the merchant’s rate.
Q. Is American Express widely accepted abroad?
A. Amex is accepted at many high-end and tourist-friendly merchants worldwide but is less common than Visa or Mastercard. Carry a backup payment method for smaller businesses.
Conclusion
Using an American Express card abroad can be a great choice, especially if you have a card with no foreign transaction fees like The Platinum Card or Gold Card.
While some Amex cards charge a 2.7% fee, you can avoid it by picking the right card and following smart practices like paying in local currency and checking merchant acceptance.
For frequent travelers, the travel perks and rewards of premium Amex cards can make them worth the annual fee.
If you’re not sure which card fits your needs, check your card’s terms or explore alternatives like Wise or Revolut for low-cost international spending.
Disclaimer: The information in this blog is for general informational purposes only and is not intended as financial advice. Always check the terms and conditions of your specific American Express card or consult with a financial advisor before making decisions.
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