You might have read about this before, but just thought I'd share an e-mail I received from Amex this morning. Amex will increase its service fees on purchases made in foreign currencies to 2%.

I will no longer use Amex for foreign purchases - Diners and my Visa card are still only at 1%, and widely accepted outside of the US.

Maybe the marketing guys at Amex should reconsider this... As you know, the UA Mileage Plus Visa guys changed their minds too after too many card holders complained about their intentions to increase fees.

"Thank you for your e-mail to American Express.

Effective 6/16/99, if a Cardmember makes a transaction in a foreign currency, it will be converted into U.S. dollars on the date it is processed by American Express. The formula for conversion will be at a rate set by American Express based on an interbank, tourist, or (where required by law) official rate + 2%.

If you have additional questions, please feel free to e-mail us again. If you are calling from outside the United States, please contact us at the collect telephone number listed below.

We appreciate hearing from you.

American Express Interactive Customer Service
http://www.americanexpress.com
1-800-297-1234 (U.S.)
336-393-1111 (collect)
8:00 a.m. to 12:00 a.m., EST."