Amex increasing Currency Conversion Fee to 3.5% from May 4 2026

[kerfuffle]

Got this e-mail from Amex earlier:

We'd like to provide you with an update on the Currency Conversion Fee on your American Express Card Account.
From 4 May 2026, the Currency Conversion Fee will change from 3% to 3.5%. Currency Conversion Fees are charged when you make a transaction in a currency other than Australian Dollars.
This change is effective across all our American Express Card products and you'll receive this notification for each of your Cards.

My main Amex gives 1.5 points for transactions not made in Australian dollars. Wonder if other financial institutions will also follow suit.

 

[Coops1]

Have never ever used my Amex overseas!

There isn't one iota of benefit in paying 3%, now 3.5% in conversion fees on any card.

 

[LionKing]

Have never ever used my Amex overseas!

There isn't one iota of benefit in paying 3%, now 3.5% in conversion fees on any card.

Likewise. I have an overseas Visa Card from HSBC which does much better in terms of overseas spending.

 

[Coops1]

Also NAB, Commbank, ANZ are already at 3.5% amongst others I would assume

To provide some clarity in maths and commonsense, the maximum value a frequent flyer point is worth for an international business class flight is 3.25 cents! Unless your valuing against a stupidly high fare you would never ever pay for anyways! Anybody is welcome to argue the "point"

 

[kerfuffle]

Also NAB, Commbank, ANZ are already at 3.5% amongst others I would assume

Just checked my main bank Westpac and still 3%, but wouldn't be surprised if it too gets increased

 

[Beer_budget]

Haven't had the email yet, but half a percent won't change the decision tree much. On past trips I found the exchange rate on the Amex was better by enough to offset about half the fee anyway (vs the ING Orange One, which I no longer hold), but YMMV.

 

[SCM]

Expect to see more of this, as the RBA is moving forward to reduce gateway fees and remove blended fees at the payment terminal, they will scramble to try and make a quick buck.