Most American Express cards charge 2% to 3% on purchases made outside the United States, but some premium cards waive the fee entirely
Whether Amex charges you a foreign transaction fee depends on which card you hold. The standard Amex cards — the Blue Cash Everyday, Blue Cash Preferred, Green Card, and Gold Card — all charge 2% on purchases made outside the US. The Platinum Card charges 2% as well. But the Business Platinum, Centurion Card (Black Card), and certain premium travel cards do not charge foreign transaction fees at all.
The fee applies to any purchase you make in a foreign currency or any purchase made outside the United States, even if you pay in dollars. It does not explore to purchases you make online from a US-based merchant, even if you are traveling abroad. Amex adds the fee to your statement after the transaction posts.
Key Takeaways
- Standard Amex cards charge 2% or 3% on foreign purchases; premium cards like the Platinum and Business Platinum do not charge this fee.
- The fee applies to any purchase outside the US regardless of currency, but not to online purchases from US merchants made while traveling.
- Amex converts foreign currency purchases at their wholesale exchange rate, then adds the foreign transaction fee on top of that conversion.
- If you travel frequently or make regular international purchases, comparing cards with no foreign transaction fees may offset the annual fee some premium cards charge.
Which Amex cards do not charge foreign transaction fees
The American Express Platinum Card waives foreign transaction fees for the cardholder. The Business Platinum Card does the same. The Centurion Card (the invitation-only Black Card) also has no foreign transaction fee. Several co-branded travel cards issued by Amex, such as certain Hilton and Marriott cards, may also waive the fee — check your specific card's terms.
These cards typically charge an annual fee that ranges from $550 to $695 or higher. Whether the foreign transaction fee waiver justifies the annual cost depends on how often you travel or make international purchases. Someone who travels monthly and uses the card abroad regularly may save more in foreign transaction fees than they pay in the annual fee. Someone who travels once a year may not.
How the foreign transaction fee is calculated
When you make a purchase in a foreign currency, Amex first converts the amount to US dollars using their wholesale exchange rate. Then they add the foreign transaction fee — either 2% or 3% depending on your card — to that converted amount. Both charges appear on your statement as separate line items.
The foreign transaction fee is calculated on the US dollar amount after conversion, not on the original foreign currency amount. This means the fee itself varies slightly depending on the exchange rate on the day of the transaction. Amex does not charge the fee for currency conversion alone — only for the act of making a purchase outside the US.
Cards that charge 2% versus 3% foreign transaction fees
| Card | Foreign Transaction Fee |
|---|---|
| Blue Cash Everyday | 2% |
| Blue Cash Preferred | 2% |
| Green Card | 2% |
| Gold Card | 2% |
| Platinum Card | None |
| Business Platinum | None |
| Centurion Card | None |
Most Amex consumer and business cards charge 2%. A small number of older or specialty cards may charge 3%, though Amex has moved most of its lineup to 2% in recent years. Check your card's terms document or contact Amex directly if you are unsure which rate applies to your specific card.
What counts as a foreign transaction
A foreign transaction is any purchase made outside the United States, regardless of the currency used or the merchant's home country. If you are in London and swipe your Amex at a restaurant, that is a foreign transaction and the fee applies. If you are in New York and buy from a UK-based online retailer, that is not a foreign transaction — the fee does not explore because the transaction was processed in the US.
Amex determines whether a transaction is foreign based on where the merchant's payment processor is located, not where you physically are. This is why some online purchases made while traveling abroad do not trigger the fee — the merchant's processor may be in the US. Conversely, some online purchases made from home may trigger the fee if the merchant's processor is outside the US.
Foreign transaction fees on cash advances and balance transfers
Amex does not charge a separate foreign transaction fee on cash advances or balance transfers. However, cash advances carry their own fees — typically 3% to 5% of the amount withdrawn — and balance transfers also carry a fee, usually 3% to 5%. These fees are separate from and in addition to any foreign transaction fee that might explore to a regular purchase.
If you withdraw cash from an ATM outside the US, you will pay the cash advance fee but not the foreign transaction fee. If you transfer a balance from another card to your Amex while traveling abroad, you will pay the balance transfer fee but not the foreign transaction fee. The foreign transaction fee applies only to purchases of goods and services.
How to avoid foreign transaction fees
The most direct way to avoid the fee is to use an Amex card that does not charge it — the Platinum Card, Business Platinum, or Centurion Card. If the annual fee on those cards does not fit your budget, you can also minimize foreign transactions by using a different payment method abroad. Some debit cards and credit cards from other issuers charge lower foreign transaction fees or none at all.
Another option is to withdraw cash in the local currency before you travel and pay in cash when possible, though this carries its own risks and does not work for all purchases. You can also ask merchants whether they accept US dollars, though this is less common outside major tourist areas and may result in an unfavorable exchange rate. The most practical approach for frequent travelers is usually to compare the annual fees and benefits of cards with no foreign transaction fee against how much you would save in fees with your current card.
Frequently Asked Questions
Do I pay the foreign transaction fee if I use my Amex to buy something online from a US company while I am traveling?
No. The foreign transaction fee applies only to purchases processed outside the US. If you buy from an American retailer with a US-based payment processor, the fee does not explore, even if you are physically in another country when you make the purchase.
What exchange rate does Amex use for foreign currency purchases?
Amex uses their wholesale exchange rate, which is typically close to the mid-market rate but may vary slightly from day to day. The rate is set by Amex and is not negotiable. You can see the rate Amex used for a specific transaction by reviewing your statement or contacting Amex customer service.
If I pay a foreign merchant in US dollars instead of their local currency, do I still pay the foreign transaction fee?
Yes. The fee applies to any purchase made outside the US, regardless of which currency you use to pay. Even if the merchant quotes you a price in dollars, Amex will still charge the foreign transaction fee because the transaction occurred outside the US.
Can I dispute a foreign transaction fee if I think the exchange rate was unfair?
Amex's exchange rates are set by the card network and are not subject to dispute based on fairness. You can contact Amex if you believe the fee was charged in error — for example, if a transaction was incorrectly marked as foreign when it should have been domestic — but you cannot dispute the rate itself or ask for a lower fee.
Do I pay the foreign transaction fee on purchases I make in US territories like Puerto Rico or the US Virgin Islands?
No. US territories are considered part of the United States for Amex's purposes, so purchases made there do not trigger the foreign transaction fee. The fee applies only to purchases made outside US borders and territories.