American Express Membership Rewards - Amex finally discloses foreign fees!

I just looked at my new Amex SPG statement. (SPG is on Amex's "OLD" system, as opposed to their "NEW" system). For the first time ever, the foreign currency transactions are highlighted, expressed in both currencies, and the 2% fee over base rate is clearly shown.

Way to go American Express! It has been a LONG, LONG time coming. Did Spitzer help you see the light?

Now that the 2% fee is so clear, and the foreign currency transactions are so clear, it is EASY to see that I am PAYING 2 cents cash to get every 1 Starwood point. Not a good use of cash, in my opinion, so now I have to decide what to do about it!

For the first time ever, the foreign currency transactions are highlighted, expressed in both currencies, and the 2% fee over base rate is clearly shown.

Does it show the USD amount excluding the 2% commission? If Amex were being totally honest, then they would itemise the commission as a separate amount.

Now that the 2% fee is so clear, and the foreign currency transactions are so clear, it is EASY to see that I am PAYING 2 cents cash to get every 1 Starwood point. Not a good use of cash, in my opinion, so now I have to decide what to do about it!

MASTERCARD/VISA gets 1% plus what the local issuer charges. MBNA adds nothing but some banks add as much as 2%.

Looks like AMEX is just an added %. Since I value my Starwood points at 1.6 cents each minimum, the deal is not that awful. I avoid AMEX because I do not trust the exchange rate.

I wonder what costs are incurred when one uses a VISA/MASTERCARD debit card to get cash from a money machine. That is how I handle most smaller overseas transactions.

Still I charge major purchases. I usually use my MBNA Mastercard because I believe I get a better exchange rate.

MASTERCARD/VISA gets 1% plus what the local issuer charges. MBNA adds nothing but some banks add as much as 2%.


Citibank is starting to charge 3% on top of the 1% so Amex seems like a bargain now.

Amazing what a class action can do...

I just looked at my new Amex SPG statement. (SPG is on Amex's "OLD" system, as opposed to their "NEW" system). For the first time ever, the foreign currency transactions are highlighted, expressed in both currencies, and the 2% fee over base rate is clearly shown.


Are you talking about a paper statement, or one on the Internet?

And I don't understand what you mean about "Amex's "OLD" system, as opposed to their "NEW" system". Could you explain?

I wonder what costs are incurred when one uses a VISA/MASTERCARD debit card to get cash from a money machine. That is how I handle most smaller overseas transactions.

I use my Wachovia Visa debit card to get cash from foreign ATM's a lot. They charge the Interbank rate plus 1%. I tracked it for about three motnhs, comparing it to the rate on Oanda.com, and their conversion rate was very, very close to Oanda's published Interbank rate.
However, if your bank charges a fee for using another bank's ATM (the ridiculous $1.50 fee), that can add up quickly.

The foreign currencies are now clearly expressed on both the internet statement and the paper statements, for the first time this month on the "old" system.

Apparently AmEx has two completely different systems both processing credit card transactions. Platinum Cash Rebate is on the "new" system. SPG is on the "old" system. The reason I know about the difference is that the new system can automatically process payments for your entire monhly balance every month without interaction monthly from any human. The "old" system can not. It can process a fixed payment, or a minimum payment, but not total balance without logging on each month.

However, if your bank charges a fee for using another bank's ATM (the ridiculous $1.50 fee), that can add up quickly.

$1.50 ridiculous?!? Try $3 for an international ATM withdrawal from Chase. I'm on a 3-month round-the-world trip and Chase's fees would have broken my budget. Thank goodness for Commerce Bank! (No fee, only the 1% Visa) I will be slowly transitioning all my business over, tired of Chase's fees!

$1.50 ridiculous?!? Try $3 for an international ATM withdrawal from Chase. !

Or $5 for Bank of America.

Or $5 for Bank of America.

And $2 for Wachovia. I had no idea and ran up a ton of fees. Well, I learnt my lesson. No more debit card usage unless I really have to (will probably pull out larger chunks at a time)

Citibank is starting to charge 3% on top of the 1% so Amex seems like a bargain now.
No they are not.

The 1% Visa/MC charge (+ 2%) is now gone. So it's an upfront, straight 3% now -- no total change. See the Visa/MC forum.

Or $5 for Bank of America.

Well, if you have a Bank of America ATM card, go to Scotiabank, BNP Paribas, Barclays, Deutsche Bank, or Westpac and there will not be any additional fees (they are all part of the Global ATM alliance).

While the conversion percentage is relevant, the most important issue is your actual conversion rate. In other words, if Amex gives you a better overall rate than you could get from an ATM or currency exchange, then it's still better to use Amex.

For example, on a Canadian trip I paid $81.38 US for $100 CAD at an ATM, but I got $82.67 US per $100 CAD through Amex. Bottom line: It was still better to use Amex than convert cash. BTW, on my Visa I got $82.97 per $100 CAD.

FamilyFlyer,

I hope you have that backwards... :confused:

FamilyFlyer,

I hope you have that backwards... :confused:
Ditto!

FamilyFlyer... why would you relish in paying more for CAD cash/goods?!? :confused:

I recently checked the website of American Express to get information on an Amex Blue CC. I read the terms and conditions disclosure on their website, but NOWHERE it did mention foreign currency transaction fees of sorts.
Is Amex obliged to disclose this, or only to Amex CC members?

I think you'll find that very few card issuers disclose the forex conversion fee simply because they don't have to. Some do as a marketing tool (e.g., Providian which is at 1%).

But I think they do not have to disclose the fee. If you call them up, they'll tell you. But for most cardholders, the first time they see the fee is in the cardmember agreement (not that anyone reads that!). I guess this is OK because you have the right to terminate your account w/o it ever showing up on your credit report if you receive the T&C and do not like the terms.

$5 for every ATM withdrawal + $5 for a balance enquiry + 3% forex