Amex foreign transaction fees: rates, exemptions, and how to avoid them

Key takeaways

• Amex charges a 2.99% foreign transaction fee on most UK business and personal cards when you spend in foreign currencies or with overseas merchants.

• Several premium Amex cards waive foreign transaction fees, but often come with higher annual fees (£140-£650) that may not justify the savings for occasional international spenders.

• Airwallex business cards eliminate foreign transaction fees entirely and offer near mid-market FX rates, making them more cost-effective for businesses with regular international spending.

Understanding Amex's approach to foreign spending

American Express cards are widely used by UK businesses for corporate spending, but foreign transaction fees can add significant hidden costs when paying international suppliers, subscribing to overseas services, or covering business travel expenses.

That 2.99% fee might not sound like much, but for businesses spending £50,000 annually on foreign transactions, it adds up to nearly £1,500 in fees. And unlike one-off transfer fees, these charges apply to every single international purchase—from your monthly SaaS subscriptions to that coffee in Paris.

This guide breaks down exactly how Amex foreign transaction fees work, when they apply, which cards avoid them, and how to reduce your costs. You'll learn how to calculate your real expense and discover when it makes sense to look at alternatives.

What is an Amex foreign transaction fee?

An Amex foreign transaction fee is a charge applied when you use your American Express card for purchases made in a foreign currency or with merchants based outside the UK.

The standard Amex foreign transaction fee in the UK is 2.99% of the transaction amount. This fee covers both the currency conversion markup and the cross-border processing charge, consolidated into a single percentage.

Unlike some card networks that separate these fees, Amex bundles everything into that one 2.99% charge, which appears on your statement as "Non-Sterling Transaction Fee" or similar wording.

It's worth noting that this isn't a static fee you pay once—it applies to every qualifying transaction. Book a hotel in New York? 2.99%. Pay for Google Ads in dollars? 2.99%. Buy software from a European supplier? 2.99%. These small percentages accumulate quickly for businesses with regular cross-border payments.

How Amex foreign transaction fees are calculated

The calculation is straightforward: Amex takes the transaction amount and adds 2.99%.

Here's how it works in practice

If you spend $100 USD with your UK Amex card, Amex converts that to GBP using their exchange rate, then adds 2.99% on top. Say the converted amount is £77. With the 2.99% fee, you'd actually pay about £79.30.

When fees appear on statements

Foreign transaction fees typically show up on your statement a few days after the transaction, once the foreign currency amount has been converted to GBP. You'll see the original transaction amount, the converted GBP amount, and a separate line item for the foreign transaction fee.

FX conversion and fees interaction

Amex's 2.99% fee is separate from—and in addition to—any markup they apply to the exchange rate itself. While Amex doesn't publicly disclose their exact FX margins, they use their own internal rates that typically include a small spread above the mid-market rate. This means your effective cost is the 2.99% fee plus whatever FX margin is built into the conversion rate.

For businesses tracking expenses closely, this dual-layer cost structure makes it harder to calculate the true total cost of international spending compared to more transparent pricing models.

When Amex charges foreign transaction fees

Amex applies foreign transaction fees in several situations, some of which might catch you off guard.

Purchases made outside the UK

Any time you use your Amex card physically outside the UK—whether you're paying for a meal in France or fuel in Germany—you'll pay the 2.99% fee. This applies regardless of whether you pay in the local currency or pounds.

Online payments to overseas merchants

This is where it gets less obvious. If you're sitting in London but buying from a US-based website, Amex still charges the foreign transaction fee. The physical location of the merchant, not your location, determines whether the fee applies.

Common examples include paying for US-based SaaS tools, buying from international Amazon sites, or subscribing to overseas services. Even if the website displays prices in pounds, if the merchant processes the payment through a foreign bank, you may still incur the fee.

Transactions processed in a foreign currency

Any purchase charged in a currency other than GBP triggers the fee. This includes obvious foreign currencies like USD and EUR, but also less common ones you might encounter through global suppliers.

Card-present vs card-not-present

The fee applies equally whether you physically swipe your card abroad or enter the details online. Amex doesn't distinguish between these scenarios—if the transaction meets the foreign transaction criteria, the 2.99% applies.

The tricky cases

Some situations aren't immediately obvious. International airlines might process UK bookings through overseas offices. Some UK-based platforms that resell international services may charge in foreign currencies. And certain payment processors route transactions through foreign entities even when buying from what appears to be a UK business.

The safest assumption: if there's any foreign element to the payment—currency, merchant location, or processing—expect the fee unless you're using a fee-exempt card.

Amex cards with no foreign transaction fees

The good news is that several Amex cards waive foreign transaction fees. The catch? Most come with substantial annual fees.

UK Amex cards that currently waive foreign transaction fees

Several premium Amex cards don't charge foreign transaction fees, including the British Airways American Express Premium Plus Card (£250 annual fee), the Platinum Card (£650 annual fee), and some co-branded hotel cards like certain Marriott Bonvoy cards.

The Amex Gold Card, despite its premium positioning, typically does charge foreign transaction fees unless you have a specific variant or promotional version.

Business vs personal cards

Most standard Amex business cards carry the same 2.99% foreign transaction fee as personal cards. Fee-free benefits are generally limited to premium tiers across both personal and business product ranges.

The annual fee trade-off

Here's where the maths matters. If you're considering upgrading to a premium card solely to avoid foreign transaction fees, calculate your break-even point. Spending £10,000 internationally on a standard card costs £299 in fees. If the premium card charges £250 annually but waives the fee, you'd save £49. But spend just £5,000 and you'd actually lose money overall.

Premium cards often bundle other benefits—lounge access, insurance, rewards multipliers—which might justify the annual fee even if foreign transaction savings alone don't. But if you're purely looking at foreign transaction costs, you need significant international spending to make the upgrade worthwhile.

Amex foreign transaction fees vs other card networks

How does Amex compare to Visa and Mastercard for foreign spending?

Amex vs Visa foreign transaction fees

Most UK Visa cards charge between 2.75% and 2.99% for foreign transactions, very similar to Amex. However, Visa is more widely accepted internationally, particularly in regions where Amex acceptance remains limited.

Amex vs Mastercard foreign transaction fees

Mastercard fees also typically sit in the 2.75-2.99% range for standard UK cards. Again, acceptance is the bigger differentiator—Mastercard generally has better international acceptance than Amex, particularly outside major cities and developed markets.

Acceptance differences and cost trade-offs

This is crucial for business travellers. You might save nothing on fees by choosing Visa or Mastercard over Amex, but you'll find them accepted in far more locations. In some countries, particularly in Asia and less touristy areas of Europe, Amex acceptance can be patchy.

For businesses, this creates a practical consideration beyond just fees: carrying a Visa or Mastercard backup might be necessary anyway, reducing Amex's value proposition for international spending even if fees are identical.

When Amex may be more or less expensive

Amex's 2.99% fee is at the higher end of the standard range. Some challenger banks and fintech cards offer significantly lower or zero foreign transaction fees with better FX rates. But traditional bank-issued Visa and Mastercard cards typically match Amex's fees, so switching between major card networks rarely delivers meaningful savings.

The real opportunity for cost reduction comes from moving to purpose-built international payment cards, not from switching between Amex, Visa, and Mastercard within traditional banking.

Hidden costs beyond the headline Amex fee

The 2.99% foreign transaction fee is just the visible part of the cost.

FX rate markups vs interbank rates

Amex, like all card networks, doesn't convert at the mid-market (interbank) exchange rate. They apply their own rate, which includes a margin. While this markup isn't explicitly disclosed as a separate fee, it represents real additional cost. The combination of the FX markup and the 2.99% fee means your effective cost is higher than the stated percentage.

Dynamic currency conversion (DCC) risks

When paying abroad, merchants often offer to charge you in pounds instead of the local currency—a practice called dynamic currency conversion. This sounds helpful but almost always costs you more. The merchant's conversion rate is typically worse than Amex's, and you still pay Amex's 2.99% fee on top.

Always decline DCC and pay in the local currency. You'll still pay Amex's fee and FX markup, but you'll avoid the merchant's additional markup layer.

Additional merchant or processing fees

Some online merchants add their own foreign transaction or processing fees, particularly when your payment is cross-border. These appear as separate charges and stack on top of Amex's 2.99%. Always check the payment summary before completing overseas purchases.

How small fees compound over time

For businesses with recurring foreign currency subscriptions—think SaaS tools, international platforms, or regular supplier payments—that 2.99% applies every single month. A £500 monthly subscription becomes £515 after fees, costing you an extra £180 annually. Multiple subscriptions multiply this cost.

These recurring fees are easy to overlook because they're small individually, but they represent significant annual expenses that don't show up in procurement or finance reviews as clearly as one-off large transactions.

Real-world examples of Amex foreign transaction fees

Let's look at what you'd actually pay in common business scenarios.

Example 1: Overseas business travel expenses

Your team member travels to a conference in Berlin and spends £2,000 on hotels, meals, and local transport using their Amex business card. Foreign transaction fees: £59.80. That's nearly £60 in fees just for a single trip.

Example 2: Paying international SaaS subscriptions

Your business uses five US-based SaaS tools with combined monthly costs of $800 (roughly £615). Each month, you pay £18.38 in foreign transaction fees. Annual cost: £220.50 in fees just for software subscriptions.

Example 3: Online purchase from European supplier

You order £5,000 worth of inventory from a German supplier, paying online with your Amex card. The supplier's bank processes this in euros. Foreign transaction fee: £149.50.

Example 4: Repeated low-value international transactions

Your business makes regular small purchases from various international platforms—stock photos, design assets, small software tools—averaging £100 each, five times monthly. Each purchase incurs £2.99 in fees. Annual cost: Nearly £180 in fees on £6,000 of spending.

Example 5: Annual international spending impact

A mid-sized business spending £75,000 annually on international purchases, subscriptions, and travel using Amex cards pays £2,242.50 in foreign transaction fees. That's more than two months of office rent for many small businesses, or enough to hire additional part-time help.

These examples show why tracking and optimising foreign transaction costs matters, especially for businesses with consistent international spending patterns.

How to avoid or reduce Amex foreign transaction fees

You can't eliminate these costs with Amex unless you upgrade to premium cards, but you can optimise your approach.

Using cards with no foreign transaction fees

If you qualify for and can justify the annual fee, premium Amex cards that waive foreign transaction fees make sense for high international spenders. Run the numbers: calculate your annual foreign spending, multiply by 2.99%, and compare to the annual fee difference between your current card and a fee-free option.

Paying in local currency vs converted amounts

Always choose to pay in the local currency, never in pounds when given the option abroad. Merchants' conversion rates through DCC are almost always worse than Amex's, even accounting for Amex's 2.99% fee.

Choosing alternative payment methods

For larger business payments to international suppliers, consider bank transfers, which may have lower all-in costs than card fees. For recurring subscriptions, evaluate whether paying annually via bank transfer instead of monthly by card saves money after accounting for foreign transaction fees.

Some businesses maintain multi-currency accounts to pay certain suppliers without currency conversion, though this requires planning and liquidity management.

Reviewing card usage policies for teams

If your team has corporate cards, clarify which types of international spending are acceptable on which cards. Reserve fee-free cards (if you have them) for international use, and designate standard cards for domestic spending only. This simple spend routing can save thousands annually for businesses with multiple cardholders.

How Airwallex helps businesses reduce foreign transaction costs

Airwallex takes a completely different approach to international business spending, designed specifically to eliminate the fees and FX markups that make traditional cards expensive for global commerce.

Multi-currency cards and accounts

Airwallex provides business cards linked to multi-currency accounts, allowing you to hold, receive, and spend in multiple currencies without conversion. If you regularly pay US suppliers, hold USD in your Airwallex account and spend directly in USD—no conversion, no foreign transaction fee.

Paying in local currencies without foreign transaction fees

Airwallex cards don't charge foreign transaction fees, full stop. Spend in euros, dollars, yen, or any other currency and you pay zero percent in transaction fees. You only pay the actual FX conversion cost when you need to convert from one currency to another, at transparent rates far lower than traditional card markups.

Transparent FX pricing

Airwallex uses live market rates with small, transparent spreads (typically 0.3-0.8%), compared to the opaque markups and 2.99% fees of traditional card networks. For a business spending £50,000 annually on foreign transactions, this difference typically saves £1,000+ compared to standard Amex cards.

When Airwallex is more cost-effective than card spending

Airwallex makes the most sense for businesses that have regular international spending, whether through suppliers, subscriptions, or travel. The more international transactions you make, the greater the savings versus traditional cards.

You're not choosing between Airwallex and Amex for all business spending—many businesses keep both. Use Airwallex for international payments and expenses where foreign transaction fees would apply, and save traditional cards for domestic spending or scenarios where Amex-specific benefits (like rewards programmes) deliver value.

The key difference is understanding of what each tool costs for each type of transaction. Airwallex isn't trying to replace your entire business banking—it's specifically designed to make international payment methods more cost-effective than traditional approaches.

Conclusion

Amex's 2.99% foreign transaction fee is standard across most UK cards, matching or slightly exceeding other card networks. For occasional international spenders, these fees are annoying but manageable. But for businesses with significant foreign currency spending—whether through international suppliers, overseas software subscriptions, or regular business travel—they represent substantial annual costs.

Premium Amex cards that waive foreign transaction fees can help, but only if your international spending justifies the higher annual fees. For many businesses, the maths doesn't work out favourably, particularly when factoring in that you're still paying FX conversion markups.

The real opportunity for cost reduction comes from using purpose-built international payment tools like Airwallex that eliminate foreign transaction fees entirely and offer transparent FX rates. For businesses serious about controlling payment gateway fees and international transaction costs, evaluating dedicated multi-currency banking alongside traditional card programmes typically delivers the best combination of savings and flexibility.

Ready to reduce your foreign transaction costs? Open an Airwallex account to access fee-free international spending, transparent FX rates, and multi-currency accounts built for global business.

FAQs

What is the current Amex foreign transaction fee for business cards?

Most UK Amex business cards charge a 2.99% foreign transaction fee on purchases made in foreign currencies or with overseas merchants. This applies to standard business cards, business charge cards, and most co-branded options. Some premium business cards may waive this fee, but typically come with annual fees of £200-£650 that may not justify the savings unless you have substantial international spending.

Are Amex foreign transaction fees charged on subscriptions?

Yes. If your subscription is with an overseas provider or charged in a foreign currency, Amex applies the 2.99% foreign transaction fee to each recurring payment. This means a $50 monthly US-based software subscription will incur roughly £1.50 in fees every month, or about £18 annually. For businesses with multiple international subscriptions, these small monthly fees compound significantly over time.

How do Amex foreign transaction fees compare to Visa and Mastercard?

Amex's 2.99% fee is very similar to most UK-issued Visa and Mastercard fees, which typically range from 2.75-2.99%. The fees themselves are comparable, so switching between these networks rarely saves money on foreign transactions. The bigger difference is acceptance—Visa and Mastercard are more widely accepted internationally than Amex, particularly in Asia and smaller merchants globally. This makes them more practical for international travel even if fees are identical.

When should a business use an alternative to Amex for overseas spending?

Consider alternatives when you have regular international spending (£10,000+ annually in foreign transactions), frequent recurring foreign currency subscriptions, or teams that travel internationally regularly. Purpose-built international payment cards from providers like Airwallex eliminate foreign transaction fees entirely and offer better FX rates, typically saving 2-3% on every international transaction. For occasional foreign spending, the effort of managing multiple payment methods may not justify the savings.