Yes, foreign transaction fees (FX fees) apply of 2.99% when using an American Express business card for purchases made in a foreign currency or through a foreign bank.
Here’s how it typically works:
Standard Foreign Transaction Fees
Most Amex business cards (like the Amex Business Gold or Amex Green for Business) charge a 2.99% foreign transaction fee on the converted amount. This is in addition to any currency conversion that takes place.
Charges in GBP but via Foreign Merchant
Some shops or ATMs abroad might offer to let you pay in pounds instead of the local currency. This is called dynamic currency conversion (DCC). It might seem helpful because you don’t have to convert the amount yourself.
But here’s what they don’t tell you:
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You usually get a worse exchange rate than if you let your own bank or card provider do the conversion.
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Even though you’re paying in pounds, the transaction is still processed by a foreign company, so you might still be charged a foreign transaction fee by your bank.
In most cases, it’s better to pay in the local currency and let your card provider handle the conversion.
Visit the Amex Business Card comparison page and review the fee section for your specific card.