Most American Express cards do charge foreign transaction fees, but a few don't
American Express charges a foreign transaction fee on most of its cards when you use them outside the United States or make a purchase in a foreign currency. That fee is typically 2% of the transaction amount. However, Amex offers a small number of cards with no foreign transaction fees at all — mainly premium travel cards and a few business cards. Whether you pay the fee depends entirely on which Amex card you carry.
The fee applies whether you're physically traveling abroad or buying from a foreign website while sitting at home. A purchase from a UK retailer, a hotel charge in Mexico, or a restaurant bill in Japan all trigger the fee on most Amex cards. The card network itself assesses the fee, not your bank or the merchant.
Key Takeaways
- Most American Express cards charge 2% on purchases made outside the US or in foreign currency, but premium travel cards like the Platinum Card and Centurion Card do not.
- The fee is assessed by Amex on the transaction amount and appears on your statement as a separate line item.
- Using an ATM abroad to withdraw cash typically costs more than the foreign transaction fee — usually 1% plus a flat dollar amount per withdrawal.
- Cards with no foreign transaction fees often come with annual fees of $550 or higher, so the savings only matter if you travel frequently.
Which Amex cards have no foreign transaction fees
The American Express Platinum Card ($550 annual fee) and the Centurion Card (invitation-only, $10,000+ annual fee) both waive foreign transaction fees entirely. A handful of business cards also offer this benefit, including the Business Platinum Card ($595 annual fee). These are all premium cards aimed at frequent travelers or high-spending business users.
Most other Amex cards — including the Blue Cash Everyday, Gold Card, and Green Card — charge the standard 2% foreign transaction fee. Even cards marketed toward travelers, like the Amex EveryDay Preferred, still assess the fee unless they are one of the premium exceptions listed above.
How the 2% foreign transaction fee works
When you use an Amex card outside the US or in a foreign currency, Amex converts the transaction to US dollars and adds 2% to the amount. That 2% covers both the currency conversion itself and what Amex calls a "foreign transaction fee." You see the full converted amount plus the fee on your statement as a single charge.
The fee applies to the transaction total, not just the conversion markup. If you spend 100 euros and the conversion costs 1%, the 2% fee is calculated on the full dollar equivalent, not on the 1% difference. This is standard across the credit card industry, though the percentage varies by card and issuer.
Foreign transaction fees on cash withdrawals
Using an Amex card to withdraw cash from an ATM abroad is more expensive than making a purchase. Most Amex cards charge a flat fee per withdrawal (often $2.50 to $5) plus 1% of the amount withdrawn. Some cards add an additional foreign transaction fee on top of that. A $200 withdrawal could cost $5 to $7 in fees alone.
Because of these costs, it usually makes sense to withdraw larger amounts less frequently rather than making multiple small withdrawals. However, if you have a card with no foreign transaction fees, the ATM fee structure may still explore — check your card's terms before you travel.
How foreign transaction fees compare across card networks
American Express is not alone in charging foreign transaction fees. Visa and Mastercard cards typically charge 1% to 3% depending on the card and issuer. Some premium cards from all networks waive the fee. The difference between a 1% fee and a 2% fee matters most if you spend a lot abroad — on a $5,000 trip, that 1% difference costs you $50.
The card issuer (your bank or Amex itself, in the case of Amex cards) sets the fee, not the network. So two Visa cards from different banks might charge different percentages. When comparing cards, always check the specific card's terms rather than assuming all cards on the same network cost the same.
When the foreign transaction fee saves you money versus currency exchange
A 2% foreign transaction fee is actually reasonable compared to what you would pay using other methods. Currency exchange booths at airports typically charge 5% to 10%. Traveler's checks are rarely available anymore. A credit card with a 2% fee is usually your cheapest way to access money abroad, even if the card carries an annual fee.
The math changes if you travel frequently. If you spend $10,000 abroad each year, a 2% fee costs you $200. A premium card with a $550 annual fee only makes sense if the fee savings, combined with other card benefits like travel credits or lounge access, add up to more than the annual cost. For occasional travelers, the fee is a minor cost of doing business.
Frequently Asked Questions
Does Amex charge foreign transaction fees on online purchases from foreign websites?
Yes. If the merchant is based outside the US or processes the transaction in a foreign currency, the 2% fee applies. The fee is triggered by the currency or merchant location, not by whether you are physically traveling.
Can I avoid the foreign transaction fee by paying in US dollars instead of the local currency?
No. Some merchants offer to charge you in US dollars instead of the local currency, but this is usually a worse deal. The merchant's conversion rate is typically worse than Amex's, and you still pay the 2% fee on top. Always choose to be charged in the local currency.
Do Amex gift cards charge foreign transaction fees?
Yes. American Express gift cards are subject to the same 2% foreign transaction fee as regular Amex cards. If you plan to use a gift card abroad, factor the fee into your budget.
What if I dispute a charge that includes a foreign transaction fee?
You can dispute the underlying transaction if you believe it was fraudulent or incorrect, but disputing the fee itself is separate. Contact Amex directly if you believe the fee was calculated incorrectly, though this is rare.
Does travel insurance or other Amex benefits cover foreign transaction fees?
No. Travel insurance and other card benefits do not reimburse or waive foreign transaction fees. The only way to avoid the fee is to use a card that does not charge it.