American Express foreign transaction fees explained

An American Express foreign transaction fee is a surcharge you pay when you make a purchase in a non-US currency or through a foreign payment processor.

Amex charges 2.7%–2.99% on some standard cards, but many premium and co-branded cards, including the Platinum, Gold, and Delta SkyMiles cards, carry no foreign transaction fee at all.

What is a foreign transaction fee?

A foreign transaction fee (FTF) is a surcharge your credit card issuer adds when you make a purchase in a currency other than US dollars or when the transaction is processed through a bank outside the United States. Even if a website shows prices in dollars, you can still trigger the fee if the payment runs through a foreign payment processor.

The fee has two components: the card issuer's markup and the network's currency conversion charge. American Express bundles both into a single line item on your statement.

American Express doesn't have a foreign transaction fee on every card. Many premium and co-branded cards waive the fee entirely, which makes card selection one of the simplest ways to avoid it.

Amex business cards and their foreign transaction fees

American Express offers different business cards to match how you operate. Some are built for frequent international purchases, while others support domestic spending or large vendor payments. That's why the fee structures vary.

When Amex business cards do charge a foreign transaction fee, the rate is typically 2.7%, slightly lower than the 2.99% usually charged on their consumer cards. Many premium and co-branded Amex cards waive the foreign transaction fee entirely. If you spend regularly outside the US, choosing one of these cards is the most straightforward way to avoid the charge.

Amex calculates the fee on the total purchase amount after converting the charge to US dollars. For example, on a $1,000 international purchase, a 2.7% fee adds $27.00 to your cost.

When Amex foreign transaction fees apply

Amex foreign transaction fees apply when a purchase is made in a currency other than US dollars. The fee is also charged when the payment is processed through a bank or payment system located outside the US. If either condition is met, American Express adds a surcharge to the total amount after converting the charge to US dollars.

You don't need to be traveling abroad to trigger this charge. Buying software from a European vendor billed in euros is enough, and you still pay if the transaction runs through a processor outside the US, such as a Canadian bank. You won't see the fee on transactions made entirely in US dollars and processed domestically.

Both physical and digital purchases are subject to the same fee structure. Whether you're swiping your card in another country or buying services online from an international provider, Amex adds the charge automatically and shows it as a separate line item on your statement.

Foreign currency purchases

Any purchase made in a non-USD currency triggers the foreign transaction fee, regardless of your physical location. If you're sitting at your desk in New York and buy a product priced in British pounds, the fee applies just as it would if you were shopping in London.

Transactions processed by foreign banks

The fee also applies when a foreign bank or payment processor handles the transaction, even if the price is displayed in US dollars. A Canadian vendor might show prices in USD on their website, but if a Canadian bank processes the payment, the foreign transaction fee still appears on your statement.

This catches many cardholders by surprise. The currency you see at checkout doesn't always reflect where the transaction is actually processed.

Online purchases from international vendors

SaaS subscriptions, international contractor payments, and digital services routed through foreign processors all trigger the fee. This is especially relevant if you pay overseas vendors or subscribe to software from companies headquartered outside the US.

How to avoid Amex foreign transaction fees

The most effective way to eliminate Amex foreign transaction fees is to use a card that waives them, but card selection is just one of three practical options.

Choose a card with no foreign transaction fee

The simplest approach is to use an Amex card that waives the fee entirely. For businesses, Ramp's corporate card also eliminates foreign transaction fees and carries no annual fee.

Always pay in local currency

When you're abroad and a merchant offers to charge you in US dollars instead of the local currency, decline. This practice, called dynamic currency conversion (DCC), lets the merchant's bank set the exchange rate, which often includes a 3%–7% markup.

If you pay in the local currency, Amex applies its own exchange rate, which is typically closer to the mid-market rate. You may still pay the FTF if your card charges one, but you'll avoid the inflated DCC markup.

Avoid cash advances abroad

ATM withdrawals on a credit card trigger a cash advance fee on top of the foreign transaction fee. The typical cash advance fee is $2.50 or 3% (whichever is greater) of the withdrawal, plus interest that starts accruing immediately with no grace period.

A better option is to use a debit card for international ATM withdrawals or carry a small amount of local currency exchanged before your trip.

How Amex converts foreign currency

American Express uses its own daily exchange rate to convert foreign currency purchases to US dollars. This rate is close to the mid-market rate but may include a small markup. The foreign transaction fee is then applied on top of the converted amount.

Exchange rate markup

Amex doesn't publicly disclose the exact rate applied to each transaction. The rate is set daily and is generally competitive, but it won't match the mid-market rate you see on Google or financial news sites exactly. You can check the rate applied to your purchase on your statement or in your online Amex account.

Dynamic currency conversion

Dynamic currency conversion (DCC) is when a foreign merchant offers to charge you in US dollars instead of the local currency at the point of sale. While this sounds convenient, the merchant's bank sets the exchange rate, and the markup is typically 3%–7% above mid-market.

Always decline DCC and pay in the local currency. You may still pay the foreign transaction fee if your card charges one, but Amex's exchange rate will be far better than the merchant's DCC rate.

Save on international spending with Ramp

If your business is growing, managing spending across teams, tools, and countries can quickly become overwhelming. You need a card that offers you control, visibility, and efficiency.

Ramp helps you avoid foreign transaction fees entirely. Unlike traditional cards that charge 2.7% or more on international purchases, Ramp's corporate card has no annual fee and doesn't charge any fees on global spending. That makes a real difference if you pay overseas vendors or manage travel across markets.

Ramp offers cashback rewards on purchases, with no categories to track or points programs to manage. You get straightforward savings without the complexity of traditional rewards.

Expense management is built into the platform, so you don't need to rely on separate systems or manual processes. Ramp automatically collects receipts, matches them to transactions, and categorizes real-time spending. This reduces the time you spend closing the books and improves the accuracy of your reporting.

As your team grows, you can issue cards with pre-set limits and approval rules to stay in control without micromanaging every purchase. Ramp connects with your existing accounting tools, so you don't have to rework your systems or chase down missing data.

Try an interactive demo to see how Ramp simplifies international spending.