If you’re planning to use your American Express card for purchases or transactions in India, it’s important to be aware of the foreign transaction fees that may apply.
Foreign Transaction Fees
American Express charges a foreign transaction fee of 3.5% on all purchases made in a foreign currency. This fee is in addition to the exchange rate used to convert the transaction into your home currency.
For example, if you make a purchase of 10,000 Indian Rupees with your American Express card and the exchange rate at the time is 1 USD = 75 INR, the transaction will be converted to $133.33 USD. However, with the 3.5% foreign transaction fee, you will actually be charged $137.87 USD for the purchase.
Avoiding Foreign Transaction Fees
While the foreign transaction fee may be unavoidable when using your American Express card in India, there are a few ways to minimize the impact:
- Use a card with no foreign transaction fees: If you plan to travel frequently or make a lot of purchases in a foreign currency, it may be worth considering a credit card that doesn’t charge foreign transaction fees. Some American Express cards, such as the Platinum Card and the Marriott Bonvoy Card, offer this benefit.
- Pay in the local currency: When using your American Express card for purchases in India, you may be given the option to pay in your home currency or the local currency. Always choose to pay in the local currency to avoid additional fees.
- Plan ahead: If you know you’ll be traveling to India or making a purchase in a foreign currency, try to plan ahead and make the purchase when the exchange rate is favorable.
Conclusion
American Express charges a foreign transaction fee of 3.5% on all purchases made in a foreign currency, including transactions in India. While this fee may be unavoidable, there are ways to minimize its impact, such as using a card with no foreign transaction fees, paying in the local currency, and planning ahead. Be sure to factor in the foreign transaction fee when budgeting for your trip or purchase in India to avoid any surprises on your credit card statement.