American Express charges foreign transaction fees on most consumer cards, but the rate and which cards are exempt depend on the specific card you hold

Most American Express consumer credit cards charge a foreign transaction fee of 2.7% on purchases made outside the United States, whether you swipe in a store, withdraw cash, or buy online from a foreign merchant. This fee is added to your bill on top of the purchase price converted to dollars. A few Amex cards charge no foreign transaction fee at all — primarily premium travel cards and some business cards — but you need to check your specific card's terms to know which category yours falls into.

The fee applies to any transaction processed through a non-U.S. merchant, even if you are physically in the United States. For example, buying from a Canadian website counts as a foreign transaction. The fee does not explore to purchases from U.S. merchants, even if you are traveling abroad.

Key Takeaways

  • The standard foreign transaction fee on most Amex consumer cards is 2.7% of the purchase amount in U.S. dollars.
  • Premium Amex cards like the Platinum Card and certain business cards charge zero foreign transaction fees.
  • The fee applies to any transaction with a non-U.S. merchant, regardless of where you are physically located.
  • You can find your card's foreign transaction fee in your card agreement or by calling the number on the back of your card.

Which Amex cards have no foreign transaction fee

American Express does not charge foreign transaction fees on the Platinum Card, the Centurion Card (the black card), and several business cards including the Business Platinum. These cards typically carry annual fees ranging from $550 to $5,000, so the lack of a foreign transaction fee is one benefit built into the higher cost.

Some co-branded Amex cards — those issued in partnership with airlines or hotels — may also waive the foreign transaction fee, but this varies by card. Check your card agreement or contact Amex directly to confirm whether your specific card charges the fee.

How the 2.7% fee is calculated

When you make a purchase abroad, Amex converts the local currency to U.S. dollars using their exchange rate on the day the transaction is processed (not the day you made the purchase). The 2.7% foreign transaction fee is then calculated on that converted dollar amount and added to your bill.

For example, if you spend €100 in Europe and the exchange rate on the processing day is 1.10 dollars per euro, your purchase converts to $110. Amex then adds 2.7% of $110 ($2.97) as the foreign transaction fee, so your total charge is $112.97. You pay both the exchange rate conversion and the percentage fee — they are separate charges.

ATM withdrawals and cash advances abroad

Withdrawing cash from an ATM outside the United States triggers both the foreign transaction fee and a separate cash advance fee. Most Amex cards charge a cash advance fee of either $5 or 3% of the amount withdrawn, whichever is greater, plus the 2.7% foreign transaction fee on top of that. This makes ATM withdrawals abroad significantly more expensive than using your card to pay directly at merchants.

If you need cash while traveling, using your card to pay at stores and restaurants is almost always cheaper than withdrawing from an ATM. Some banks and credit unions offer fee-free ATM networks abroad, but Amex does not operate such a network for cardholders.

How to find your card's specific foreign transaction fee

Your card agreement, which you received when you opened the account, lists the foreign transaction fee for your specific card. You can also find this information by logging into your Amex online account, calling the customer service number on the back of your card, or visiting the Amex website and searching for your card's terms and conditions.

If you have an older card or are unsure which version of a card you hold, calling Amex is the fastest way to confirm. Customer service representatives can tell you when ready whether your card charges the fee and at what rate.

Comparing foreign transaction fees across card networks

American Express's 2.7% foreign transaction fee is in line with Visa and Mastercard, which typically charge between 1% and 3% depending on the card issuer and card type. The fee is set by the card issuer (the bank that issued your card), not by Amex, Visa, or Mastercard themselves. This means two Visa cards from different banks may have different foreign transaction fees.

If you travel frequently and want to avoid foreign transaction fees entirely, you may want to carry a card from a bank or issuer that offers cards with no foreign transaction fee. Many online banks and travel-focused card issuers offer this feature on cards with lower or no annual fees, though the cards may not include other travel benefits that premium Amex cards offer.

What happens if you dispute a foreign transaction

If you dispute a foreign transaction, the foreign transaction fee is usually reversed along with the disputed charge. However, if Amex determines the transaction was legitimate and you lose the dispute, you will be charged the fee again. The fee itself cannot be disputed separately — it is tied to the underlying purchase.

If you notice a foreign transaction fee on a charge you did not make, report it as part of your dispute of the underlying charge. Amex will investigate both the charge and the fee together.

Frequently Asked Questions

Does Amex charge foreign transaction fees on online purchases from foreign websites?

Yes. If the merchant is based outside the United States, the transaction is considered foreign and the 2.7% fee applies, even if you are in the U.S. when you make the purchase. The location of the merchant, not your location, determines whether the fee applies.

Can I avoid the foreign transaction fee by using a different payment method?

No. If you use your Amex card, the fee applies (unless your card is one of the exceptions). Using a different card network or paying with cash, a wire transfer, or another method would avoid the Amex fee, but you would then be subject to whatever fees that payment method charges.

Is the 2.7% foreign transaction fee the same for all Amex consumer cards?

The 2.7% rate applies to most Amex consumer cards, but some premium cards charge zero. Check your card agreement to confirm the rate for your specific card. Business cards may have different rates as well.

What is the difference between the foreign transaction fee and the exchange rate markup?

The foreign transaction fee is a flat 2.7% charge added by Amex. The exchange rate is the conversion rate from the foreign currency to dollars, which Amex sets and which may differ slightly from the mid-market rate you see online. Both are separate costs you pay when you use your card abroad.

Do I pay the foreign transaction fee if I use my Amex card at a U.S. store while traveling abroad?

No. The fee only applies to transactions with non-U.S. merchants. If you use your Amex card at a U.S. chain store or restaurant while traveling, no foreign transaction fee is charged, though the merchant may still be in a foreign country.