American Express does charge foreign transaction fees on some cards but it also offers an extensive line of cards which do not carry foreign transaction fees. So the answer to this question depends on which American Express cards you plan to use when traveling abroad.
Before you travel, make sure you know which fees apply to which cards and spend accordingly. For instance, if you carry an AmEx Blue Cash card, you can generally expect to pay the standard American Express foreign transaction fee of 2.7%. On the other hand, if you are a Platinum Card holder, one of your perks will be zero transaction fee purchases abroad.
Thinking of adding another American Express card to your arsenal before traveling? Check out our look at the rules dictating how many AmEx cards you can apply for at once. Otherwise, read on to learn more about foreign transaction fees and what they mean for you as an American Express cardholder.
What are foreign transaction fees?
Foreign transaction fees are additional charges applied to your credit card bill for each purchase made abroad in a foreign currency. These fees will apply to purchases made both online and in person when traveling internationally, and will usually be a percentage of your overall spend.
While a foreign transaction fee for a small gift at a souvenir shop might only run you a few cents, larger purchases like hotel bookings and car rentals can be quite a bit steeper, amounting to hundreds of extra dollars spent during your trip. This is why many credit card companies offer an array of credit cards without transaction fees.
For an example, check out the varying foreign transaction fees, including zero foreign transaction fee cards, from Chase Bank.
Does American Express offer credit cards with no foreign transaction fees?
American Express also offers a wide variety of credit cards that do not charge foreign transaction fees. Indeed, this is often a perk included among the membership benefits from a number of American Express rewards credit card programs. Of course, while you won’t pay foreign transaction fees with some of these cards, you will likely pay higher annual fees as part of your rewards club membership.
For instance, the Platinum Card may come with no foreign transaction fees, but it does carry a $695 annual fee for cardholders. Of course, if you do a great deal of international travel, you could easily eclipse that annual fee in savings on just a few trips overseas. On the other hand, if you don’t travel abroad much, this perk is likely not one for which you’ll want to pay extra.
Before you prioritize an American Express card without foreign transaction fees, be sure the combination of savings and annual fees makes sense for you. Now, with that said, if you do travel extensively and you wish to avoid foreign transaction fees, you have quite a few options from American Express.
Which American Express cards come with no foreign transaction fees?
American Express actually offers a dozen credit cards with varying perks, rewards, and annual fees that can protect you from paying foreign transaction fees. According to the American Express website, you can “Make your international trips even more rewarding when you use a Credit Card with no foreign transaction fees. Each Card [listed] offers fabulous travel, shopping, and entertainment perks so make sure you read through all the benefits to find your perfect Card. Plus, you’ll always get 24/7 Card Member support.”
The following are among the most popular AmEx cards that you can get in order to avoid foreign transaction fees:
The Platinum Card
You can earn up to 150,000 Membership Rewards Points after you spend $8,000 on purchases using your new card in the first 6 months. The annual fee is $695.
The American Express Gold Card
You can earn up to 90,000 Membership Rewards Points after you spend $6,000 on purchases using your new card in the first 6 months. The annual fee is $250.
The Delta SkyMiles® Gold American Express Card
You can earn up to 40,000 Bonus Miles after you spend $2,000 on purchases using your new card in the first 6 months. You’ll get a $0 introductory fee for the first year and a $99 annual fee after that.
Marriott Bonvoy Bevy™ American Express Card
You can earn up to 85,000 Marriott Bonvoy® Bonus Points after you spend $5,000 on purchases using your new card in the first 6 months. The annual fee is $250.
Marriott Bonvoy Brilliant American Express Card
You can earn up to 95,000 Marriott Bonvoy® Bonus Points after you spend $6,000 on purchases using your new card in the first 6 months. The annual fee is $650.
While the welcome offer and rewards differ for each of these credit cards, you won’t be charged foreign transaction fees with any of these cards. You’ll want to weigh the costs and benefits of each card against your most likely spending needs. If you have additional questions, check out our index of contacts to find the right customer service department at American Express.
Will I pay any other transaction fees for purchases made abroad with my American Express card?
American Express points out that even though it offers numerous credit cards and charge cards that can be used without incurring foreign transaction fees, you may still be charged fees through institutions other than American Express. For instance, while American Express may not charge you a fee for using a card with a foreign merchant, the merchant may charge you a fee for using a foreign card.
The merchant may do this to offset any foreign transaction fees charged directly to them for processing foreign cards. Likewise, you may be charged international ATM fees for using your American Express card to take out a cash advance at an ATM while traveling abroad.
This transaction fee will be on top of the cash advance fee you will incur through American Express. In other words, as costly as a cash advance is, generally speaking, it will be even more costly if you choose to take advantage of this feature while traveling internationally.
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Check out our article on the American Express cash advance feature to find out why this option should really only be considered as an absolute last resort.