American Express foreign transaction fee: what you should know

When your business spends internationally, the foreign transaction fees can quietly erode your bottom line. Many businesses use American Express for spending, but not all of its cards handle foreign transactions the same way.

A foreign transaction fee is a surcharge added to eligible purchases made in a currency other than U.S. dollars or processed through a foreign bank.

Does American Express charge a foreign transaction fee?

American Express charges a foreign transaction fee on many of its business credit cards. If you're using one of these cards to make a purchase in a non-U.S. currency or through a foreign bank, you’ll likely pay an extra 2.7% on top of the transaction amount.

You will pay this fee whether you travel abroad or buy from an online vendor that processes payments outside the U.S. It’s added automatically and shows up as a separate line item on your statement.

Not all American Express cards charge this fee. Some business cards are designed for international use and come with no foreign transaction fees. Others, especially entry-level or cash-back focused cards, do charge it by default.

If you're not sure whether your AmEx card includes this fee, check your card’s terms. Look for language like “foreign transaction fee” or “fees on international purchases.” If it lists a 2.7% credit card charge, your business is paying more than it needs to every time you spend globally.

AmEx business cards and their foreign transaction fees

American Express offers different business cards to match companies' operating styles. Some travel credit cards are built for businesses with frequent international purchases or ongoing expenses in foreign currencies. Some cards support companies that spend primarily in the U.S., focus on straightforward rewards, or handle large vendor payments through platforms like Amazon or Lowe’s. That’s why the fee structures vary.

When do AmEx foreign transaction fees apply?

AmEx foreign transaction fees apply when a purchase is made in a currency other than US dollars. It is also applied when the payment is processed through a bank or payment system located outside the US If either condition is met, American Express adds a 2.7% fee to the total amount after converting the charge to US dollars.

This means you don’t need to be traveling abroad to trigger the fee. The fee applies if you buy software from a European vendor and the invoice is billed in euros. Even when a website shows prices in dollars, you still pay the fee if the transaction runs through a processor outside the U.S. For example, if a Canadian bank processes the payment, your statement will show the 2.7% charge. You will not see the fee on transactions made entirely in US dollars and processed within the US.

The fee applies to both physical and digital purchases. Whether you are swiping your card in another country or buying services online from an international provider, the fee structure stays the same. It’s added automatically and appears as a separate line item on your statement.

Why growing businesses choose 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% 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.

You also earn cash-back on every transaction, no matter what you buy or where you spend. There are no categories to track or points programs to manage. You get straightforward savings every time your team uses the card.

Expense management is built into the platform, so you do not 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.

Align your card choice with your business strategy

Foreign transaction fees may seem small, but they can have a real impact on your margins. With American Express, whether or not you pay those fees depends entirely on your chosen card.

Some AmEx business cards waive foreign transaction fees and offer rewards designed for global use. If you are using the wrong card for the way your company spends, you are leaving money on the table.

Take time to evaluate how and where your company spends, then choose a card that supports that strategy. Tools like Ramp offer corporate cards with no foreign transaction fees and controls that help you manage spending across teams without extra effort.