WARNING: Amex overcharging on forex conversion rates form ZAR
 

Probably relates only to Aussie Amex cards but thought that those of you (like me) who have recently taken advantage of the flcutuating ZAR might want to track this discussion on the Australian FF board.

http://www.frequentflyer.com.au/comm...ors-15282.html

FYI when AX AU converts currency x (where x =! USD) to AUD, it actually converts x->USD->AUD.

Shouldn't matter really as OANDA spot (interbank) rates on 11/01/08 give:

52140 ZAR ---> 7912.73 AUD
or

52140 ZAR --> 5246.33 USD ---> 7912.73 AUD

Above is assuming of course that both occurred on the same day. However for reference I did do the ZAR to USD on the 10/30/08 and the USD to AUD on 11/01/08 just to see the result and it actually comes out even better for me ($7755AUD) so AMEX are going to strugle with the double conversion argument.

Of course I guess there's the possibility they will say they get to charge the 2% conversion fee twice, in which case it will be that last ever non US$ foreign purchase I make on my AMEX.

paul4471

Is that called double-dip?

I can't speak for AU Amex, but on HK Amex the 2% is explicitly only charged once (and I have verified that through various transactions, albeit from GBP not ZAR).

The Swedish AmEx charges the 2 percent fee twice when making a transaction which is not in USD (except in SEK of course for which there is no fee). 4% makes quite a difference after a while...

AmEx in Finland charges the 2% fee only once according to the representative I spoke with last week.