Traveling abroad or making purchases in foreign currency often leaves many wondering about the real cost behind their transactions. Dogpay is here to help you navigate the fine print and make smarter spending choices when using an American Express card overseas.
1. What Exchange Rate Does Amex Use?
American Express applies its own proprietary exchange rate—commonly referred to as the American Express Exchange Rate—when converting foreign currencies back into your home currency. This rate typically hovers near the mid-market rate but may include a modest markup. Always check this rate via the Amex app or online before making foreign purchases.
2. Currency Conversion & Foreign Transaction Fees
When you spend using Amex abroad, two main costs apply:
- A foreign transaction fee of around 2.99% is added to each purchase in a non‑GBP currency.
- For ATM withdrawals overseas, Amex charges 3% (or £3 minimum) plus the 2.99% conversion fee. Interest may also accrue immediately.
3. Beware of Dynamic Currency Conversion (DCC)
At some merchants or ATMs, you may be offered to pay in your home currency instead of the local one. This is known as Dynamic Currency Conversion (DCC), and it often comes with poor exchange rates and hidden markups. Using Dogpay, we always recommend insisting on paying in the local currency—this ensures that Amex applies its own (more favorable) exchange rate.
4. Practical Tips with Dogpay
Here’s how you can make your Amex travel spending more efficient:
- Check rates before paying using the Amex Foreign Transaction Calculator.
- Avoid cash advances unless absolutely necessary—they incur high fees and interest.
- Pay in local currency to avoid DCC.
- Use Dogpay as your travel companion: track Amex fees, compare rates in real time, and get alerts when using DCC—for smarter, safer spending.
5. Bottom Line
American Express offers relatively transparent currency exchange, but fees can still add up. That’s where Dogpay steps in—empowering you to understand true costs, reduce surprises, and ensure your overseas spending remains efficient and worry-free.
