What’s the exchange rate of the American Express card? 2025
American Express is a popular card network which issues credit and charge cards in Australia for personal and business use. There are plenty of American Express cards to choose from, and all of them can be used at home and abroad wherever you see the American Express logo. But what does it cost you to use your American Express card abroad? What exchange rate is used, and does it include any extra fees? Let’s find out.
How can I use the American Express card?
American Express Australia issues a huge range of credit cards, including personal and business credit cards and charge cards which work slightly differently. Some popular personal card choices include:
- American Express Essential Rewards card
- American Express Platinum card
- American Express Platinum Edge card
- American Express Low Rate card
- American Express Explorer card
There are also other options including business cards, and some specific cards in partnership with Virgin Australia and Qantas:
- The Velocity American Express card series – 3 options depending on your needs
- The Qantas American Express card series – 4 options depending on your needs
Assuming you have an American Express credit card, you’ll be able to use it to spend to your card’s credit limit at home and abroad. You can spend in stores and online, and also use your card at an ATM. Fees may apply depending on how you transact and how you use your card. Cash advance fees are likely to apply for example, and there’s also the possibility that you’ll need to pay interest or penalty fees if you don’t pay your bill on time and in full every month.
Aside from that there are also annual fees in many cases, which can be as high as 1,450 AUD for a premium card – and a foreign transaction fee which is added to the exchange rate used for currency conversion when you spend overseas. This fee is 3% of the amount you spend – which means your foreign currency spending will cost you at least 3% more than the price you’d pay to spend in Australia. We’ll explore that in more detail later.
Alternatives to travel credit cards
As we’ve already seen, American Express cards in Australia can come with some fees you’ll have to consider, including foreign transaction fees. It’s also important to note that cards are issued only if you meet the American Express eligibility requirements, which may mean passing a credit check and paying your annual fee upfront.
Travel credit cards can be super helpful if you prefer to spread your travel costs out over a few months and don’t mind paying an extra fee to do so. However, they’re not right for all situations. If you’d prefer to use a low cost multi-currency card which lets you convert to the currency you need in advance to pay when you’re overseas, a travel debit card may suit you. You’ll need the funds to cover your travel costs upfront – but in exchange there’s no need to worry about interest or penalties, and in many cases, no ongoing fees. Let’s look at a few options which may be a good American Express alternative:
Wise travel debit card
Open a Wise account and order your Wise travel debit card to spend seamlessly in 150+ countries for a low one time fee. Wise accounts can hold 40+ currencies, and it’s free to spend a currency you have in your account with your linked Wise card. If you don’t have the currency you need in your account, the Wise card will manage the conversion at the point of payment, with the mid-market exchange rate and transparent fees which can be as low as 0.65%. Use your card in an ATM to get cash when you need it, with no Wise fee for the first 2 withdrawals up to 350 AUD every month*.
A Wise account can also be helpful if you’re looking for ways to receive, hold, send and exchange currencies, with local and SWIFT account details in a selection of 8+ global currencies to get paid, and ways to send money to 160+ countries.
How to get a Wise card
Getting a Wise card is easy – all you’ll need is your phone or laptop, and your ID such as your passport. Here’s how to get a Wise card, step by step:
- Open the Wise app or desktop site
- Select Register and confirm you want to open a personal account
- Register with your email, Facebook, Apple or Google ID
- Upload your ID document to complete the verification step
- Tap the Cards tab to order your card
- Pay the one time card order fee, confirm your mailing address, and your card will be on the way
*Wise will not charge you for these withdrawals, but some additional charges may occur from independent ATM networks
Revolut debit card
Revolut offers 3 different account plans for Australian customers, which can be opened and operated online or in the Revolut app. All accounts come with a linked debit card, and can hold and handle 30+ currencies. Get a Standard account with no monthly fee, or upgrade to a plan which has a monthly charge of up to 24.99 AUD to unlock more benefits. You’ll also be able to make withdrawals at ATMs internationally, with no fee for monthly withdrawals of up to 350 SGD for the standard plan.
How to get a Revolut card
You can open a Revolut account easily in the Revolut app which is available on Apple and Android phones. Here’s how to get a Revolut card step by step:
- Download the Revolut app
- Select Register and follow the prompts to enter your personal and contact information
- Confirm which type and tier of account you would like to open
- Upload your ID document to complete the verification step
- Once your account is verified, your card will be sent to you registered address
Travelex prepaid travel card
You can hold 10 currencies with a Travelex travel card, to spend and withdraw globally wherever you see the Mastercard symbol. It’s free to add money to your card with BPAY, or you can do so in a Travelex branch for a fee. Whenever you need to convert currencies, the exchange rate used is set by Travelex and Mastercard, and may include a markup – but there’s no Travelex ATM fee at home or abroad.
How to get a Travelex card
Order your card online for delivery or collection, or just call into a Travelex location with your normal ID documents to take your card away instantly. If you order your card online you’ll just need to follow the prompts from the Travelex website – but bear in mind that the name on the card you order must match the name on your bank account, in order to top up your card account.
American Express card exchange rate
The American Express card exchange rate is set by the network, with reference to industry sources. This means that the network will look at the interbank (mid-market) exchange rate on the day before your purchase, and calculate a rate which is based on this but which may include a small fee. The mid-market rate is the one that banks use when trading currencies on the wholesale market – which is why it’s used as a benchmark. American Express will then set their rate with reference to this, and with a small fee to cover their costs and profit.
However, the amount you pay isn’t dictated by the American Express exchange rate alone. There’s also an American Express foreign transaction fee which is applied on all spending in foreign currencies. This fee is 3% of the amount you spend, and it’s added when you spend or make a withdrawal overseas, or when you use your card to pay in a foreign currency online.
If you want to avoid this fee, you may want to take a look at debit cards which support holding a multi-currency balance, such as the accounts from Wise and Revolut. These providers don’t use foreign transaction fees, which can help keep down your costs overseas.
Can you use the American Express card abroad?
Yes. Your American Express card is widely accepted overseas, although it’s not always as popularly supported as some other networks like Visa and Mastercard.
American Express is very commonly available in the Americas, with a 99% acceptance in the US. It’s also more and more commonly accepted in tourist areas in Europe, for example. However, some smaller merchants may not offer this payment option, and some specific countries may have lower overall acceptance rates.
American Express is working to get more merchants on board globally, but it’s always a good idea to have more than one card – on different networks – when you travel, in case you run into issues using one network or another.
What are the fees for the American Express?
American Express fees do vary between card types, so you’ll need to check your own card’s terms and conditions document carefully.
The most common fees to know about with American Express include:
- Your annual fee which can vary from 0 AUD to almost 1,500 AUD depending on the card you pick
- Foreign transaction fees of 3% on all foreign currency spending
- Cash advance fees of 2% for credit card customers
- Interest on unpaid bill amounts, which can vary depending on the card you have
- Late payment fees which are 30 AUD for credit card customers
You can keep down the costs overall by selecting a card which has a low or no annual fee, and making sure you repay your bill in full and on time every time. It’s also worth thinking about avoiding using your card overseas and in an ATM as these transactions add extra costs – pop a travel debit card from a provider like Wise in your wallet for travel use instead.
American Express alternatives comparison
Here’s a quick summary of the American Express fees you’re likely to meet, alongside the American Express alternatives we featured earlier:
| Card | Exchange rate | Foreign ATM fee | Other fees |
|---|---|---|---|
| Wise | Mid-market rate | No fee for 2 withdrawals, to 350 AUD monthly*
Then 1.5 AUD + 1.75% |
10 AUD card order fee
Currency conversion from 0.65% |
| Revolut | Revolut rate to plan limit, then 0.5% fair usage fees apply
1% out of hours fee may apply |
No fee to plan limit, then 2% | 0 AUD – 24.99 AUD monthly fee |
| Travelex | Travelex rate which may include a markup on the mid-market rate | No Travelex fee | Some top up fees apply, depending on your method |
| American Express | Network rate + 3% | 2.5 AUD or 2%, whichever is greater + interest | Annual fees of up to 1,450 AUD
30 AUD late payment fee
Interest if you don’t repay in full |
Information correct at time of writing – 13th February 2025
*Wise will not charge you for these withdrawals, but some additional charges may occur from independent ATM networks
Do I need a credit or debit card for travelling overseas
There are both pros and cons of using a credit card, and pros and cons of using a debit card when traveling.
A credit card can be handy if you want to spread out your costs over a few months, and can also be used as a payment guarantee when checking into a hotel or hiring a car. You may also get perks like some free travel insurance, cashback or air miles depending on the card you select. However, the costs are often higher compared to using a debit card that’s been optimised for overseas use.
Debit cards can be cheaper, but they do mean you have to add money to your account before spending. If you have a multi-currency account and card from a service like Wise or Revolut, you can add money in AUD and then convert to the currency you need so you’ll see your travel budget instantly. Or you can just let the card convert when you pay for things. Generally, exchange rates are pretty fair and fees are quite low, but you’ll need to double check the terms of the specific card you select to make sure it suits your transaction needs.
Difference between travel credit and debit cards
Travel credit cards usually mean passing a credit check on application, and can also require you to pay an annual fee. Once you have a card you can spend to your credit limit, and then pay the card provider back when you get your bill. Many cards have great perks like reward earning opportunities, cash back, integration with frequent flyer programs and free travel insurance. However, if you don’t repay your bills on time and in full you will pay extra.
Travel debit cards often have low or no annual fee to pay, but they do require you to add money to the account before you can start spending. If you have an account with multi-currency features you can hold a balance in any supported currency, and usually spend it for free when you’re away from home. Cards can be used in an ATM or for online and in person spending, and they’re pretty secure as they don’t have any link to your main everyday account from your bank. This means that if you’re concerned about your card being compromised you can just freeze it without needing to cancel your primary bank cards.
Conclusion
American Express has a very broad range of credit and charge cards for Australian customers, which are offered for both personal and business use.
The American Express exchange rate is set with reference to wholesale rates, but can include a markup. On top of this, you pay a 3% foreign transaction fee every time you spend in a foreign currency. This can push up your costs when you travel and shop online with foreign retailers. Before you use your American Express overseas, compare your options with the alternatives we’ve looked at in this guide, such as low cost international debit cards from Wise and Revolut.
FAQ
Does American Express have no international transaction fee?
American Express Australia cards have a 3% foreign transaction fee which applies whenever you spend in a foreign currency in person or online. Consider an account with multi-currency features with a linked debit card from a provider like Wise or Revolut if you want to avoid this cost.
Is American Express good for travel?
American Express cards have pretty broad global acceptance, but they’re not as commonly accepted as Visa or Mastercard in some countries and regions. Check the coverage available in your destination before you travel.
