AE Exposure Management Limited

Old Jun 10, 16, 11:47 am
  #1  
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AE Exposure Management Limited

Noticed this update in a statement:
Effective August 15, 2016, we are updating your Cardmember Agreement to state that, for any charges you make in a foreign currency, AE Exposure Management Ltd. ("AEEML") will convert that charge into U.S. dollars.
This appears to just be a subsidiary of Amex, but I couldn't find much more info in a quick google search.

Anyone know more about this subsidiary and how they might compare to how Amex has previously converted foreign transactions? I've found their conversion rates in the past to be quite fair, and would be saddened if this shift changes that for the worse in order to support the bottom line of a separate entity.
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Old Jun 13, 16, 2:15 pm
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I'm really hopeful that this is not some new way to for Amex to introduce Dynamic Currency Conversion aka DCC scam by merchants overseas.
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Old Jun 13, 16, 2:29 pm
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mia
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I imagine this is primarily a way to transfer the currency conversions transactions into a jurisdiction with favorable tax treatment. AE Exposure Management has existed since the 1980's. Adding no fee on some cards does not mean there is no profit made by the business which performs the transactions.
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Old Jun 14, 16, 12:44 pm
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It looks like it's a subsidiary of American Express Credit Corp based in Jersey.
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Old Jun 14, 16, 2:33 pm
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Originally Posted by wesheltonj View Post
It looks like it's a subsidiary of American Express Credit Corp based in Jersey.
That being Jersey in the Channel Islands rather than the US State.
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Old Jun 27, 16, 10:03 pm
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Originally Posted by wesheltonj View Post
It looks like it's a subsidiary of American Express Credit Corp based in Jersey.
Should be interesting whether they stay there with Brexit.

Anyway, looked at my cardmember agreement and the section this modifies says nothing about the conversion fee/rate, which appears elsewhere and is for me 2.7% (the standard one if you don't get 0 I believe).

Will continue to leave Amex at home when I travel.
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Old Jun 28, 16, 11:21 pm
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Originally Posted by drewguy View Post
Should be interesting whether they stay there with Brexit.

Anyway, looked at my cardmember agreement and the section this modifies says nothing about the conversion fee/rate, which appears elsewhere and is for me 2.7% (the standard one if you don't get 0 I believe).

Will continue to leave Amex at home when I travel.
Last I checked Jersey was not in the EU. Brexit will not be a problem for Jersey, Isle of Man, or Guernsey.
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Old Jun 29, 16, 7:54 am
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Originally Posted by wesheltonj View Post
Last I checked Jersey was not in the EU. Brexit will not be a problem for Jersey, Isle of Man, or Guernsey.
Whilst correct that Jersey is not in the EU, its relationship with the EU (and the UK) is complex

http://www.channelislands.eu/eu-and-...annel-islands/

The formal relationship between the Channel Islands and the EU is enshrined in Protocol 3 of the UK’s 1972 Accession Treaty, and confirmed in what is now Article 355 (5) (c) of the EU Treaties. Under Protocol 3, the Islands are part of the Customs Union and are essentially within the Single Market for the purposes of trade in goods, but are third countries (ie outside the EU) in all other respects. However the Channel Islands have a close relationship with the EU in many different fields, not simply those covered by the formal relationship under Protocol 3, as this note explains. Both Jersey and Guernsey voluntarily implement appropriate EU legislation or apply the international standards on which they are based.
It remains to be seen what stance the Jersey Government will take in the context of Brexit, but back on topic, I would be surprised if this Amex entity moved onshore to mainland UK as a result of Brexit as there are other benefits (largely tax based) to Amex of having this entity based in Jersey.
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Old Jun 29, 16, 1:18 pm
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Originally Posted by Physci View Post
Whilst correct that Jersey is not in the EU, its relationship with the EU (and the UK) is complex

http://www.channelislands.eu/eu-and-...annel-islands/



It remains to be seen what stance the Jersey Government will take in the context of Brexit, but back on topic, I would be surprised if this Amex entity moved onshore to mainland UK as a result of Brexit as there are other benefits (largely tax based) to Amex of having this entity based in Jersey.
Thanks for the clarifications. While not terribly relevant to the Amex issue, if the UK's potential exit from the EU has knock-on effects for the EU's relationship with Jersey, then Amex might consider moving from Jersey to an EU nation. That said, there may be no particular advantages to doing so, if an increased set of trade barriers doesn't hamper their business.
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Old Jul 21, 16, 11:22 pm
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I'm getting concerned.

Just put through a rather sizeable charge on my DL Reserve Amex. All my previous foreign transactions on that card have processed at a rate pretty close to what XE.com gives me on the day the transaction posts.

This was a NZD transaction, which converted to USD at about a 1.38 NZD:USD ratio. The worst that ratio got the entire week of the transaction was 1.39935, and it was closer to 1.405 for the days between the payment and when it posted.

Either the new processing arm for Amex foreign transactions is using unfavorable rates or I just got really unlucky this time...
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Old Jul 22, 16, 3:23 am
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Here in Italy on the agreement is specified that for non USD currency transaction amex will convert the amount in USD and then in Euro.
Only USD transaction are directly converted in Euro!

Se l’Addebito in valuta diversa dall’Euro non è in dollari U.S.A., il cambio sarà effettuato tramite dollari U.S.A., il che implica la previa conversione dell’Addebito in
dollari U.S.A. e, successivamente, la conversione dell’importo da dollari U.S.A. in Euro. Se l’Addebito è in dollari U.S.A., esso sarà convertito direttamente in Euro.
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Old Jul 22, 16, 3:45 am
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Originally Posted by gooselee View Post
I'm getting concerned.

Just put through a rather sizeable charge on my DL Reserve Amex. All my previous foreign transactions on that card have processed at a rate pretty close to what XE.com gives me on the day the transaction posts.

This was a NZD transaction, which converted to USD at about a 1.38 NZD:USD ratio. The worst that ratio got the entire week of the transaction was 1.39935, and it was closer to 1.405 for the days between the payment and when it posted.

Either the new processing arm for Amex foreign transactions is using unfavorable rates or I just got really unlucky this time...
You may also have a look on the "cut-off hour" for the purchase made. I think that all purchases at the same date are converted using the same rate.

Not continuosely quoted during one day. So you may check if this is the rate of one day later.

Sorry that I don't know the exact hour.
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Old Jul 22, 16, 7:07 am
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mia
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Originally Posted by gum View Post
... all purchases at the same date are converted using the same rate..
Correct, and the rate is applied on the processing date, not on the transaction date. What is the posting date of the transaction in question?
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Old Jul 22, 16, 8:19 am
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Originally Posted by SavyAn View Post
Here in Italy on the agreement is specified that for non USD currency transaction amex will convert the amount in USD and then in Euro.
Only USD transaction are directly converted in Euro!
This is pretty par for the course.
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Old Jul 22, 16, 9:16 am
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Originally Posted by gum View Post
You may also have a look on the "cut-off hour" for the purchase made. I think that all purchases at the same date are converted using the same rate.

Not continuosely quoted during one day. So you may check if this is the rate of one day later.

Sorry that I don't know the exact hour.
Yeah, I figured it's all processed in daily sweeps. What surprised me was that I got a rate that was worse than any point the market hit that entire week.

I sent payment info to the merchant over the weekend and it posted to Amex on the 19th. There was a dip in the exchange rate on the 18th, so that's fine, this is just the first time I've seen my conversions happen at a lower rate than the bottom range of what XE shows within the relevant time period. And it's usually more in the middle of the range.

TBH, I usually don't pay as close attention since most of my charges are small ones here and there that all average out. I only dug into this one because we were paying for an entire package at once so it was a single very large transaction, and I think my first since the announcement that started this thread.
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