AMEX Platinum Overseas

[hexDoor]

I'm lucky enough to be able to work remote for work so was planning to be a "digital nomad" in order to take advantage of lower cost of living countries (Asia).

However, I am aware that AMEX Australia cards have a 3% foreign exchange fee and that currency other than USD is converted to USD then AUD (2 stage conversion although 3% fee only applies once).

I was wondering if it would still be worth to apply for this card for overseas spending as I am still paid to my Australian bank account and would like to maximise my rewards by primarily using AMEX.

If not, anyone have any ideas on any great companion cards? I was thinking Macquarie Bank debit but that has no rewards.

 

[Doctore1003]

I don’t think a 3% fee is worth it. There’s also the AMEX acceptance issue.
I always use the Bankwest World mastercard overseas. No fee and earns Qantas Points.

 

[hexDoor]

I don’t think a 3% fee is worth it. There’s also the AMEX acceptance issue.
I always use the Bankwest World mastercard overseas. No fee and earns Qantas Points.

I should probably mention that the countries I plan to be at don't have an AMEX acceptance issue (at least not anymore) but not sure on Qantas since I haven't really flown with them (I mostly fly Asian carriers like JAL, ANA, Korean Air etc.)

 

[Human]

I never use AmEx overseas. The 3% surcharge really adds up and it more than cancels out any rewards points earned (though I plan to use it later this year to take advantage of the $200 overseas dining credit).

When overseas I use the Coles Rewards Mastercard. It has a low ($99) annual fee, no currency conversion fee, reasonable exchange rates and it earns the eqivalent of 1 Velocity point (=0.645 KrisFlyer mile) per A$ spent.

 

[sudoer]

Check out the CBA Ultimate Rewards card. 1.2 QFF per dollar on international transactions with no Forex charge.

If you spend over $4k per month the card is fee free.

 

[sydunipete]

I have a platinum Amex and CBA Ultimate. Both have devalued (for me) in the last few months. But Amex is great in Australia and when travelling (Priority Pass lounge access, $450 travel credit, some good business class fares and some restaurant credits, lots of hotel and car hire membership upgrades). Overseas I tend to use the Amex only as a backup because of the 3% charge. The CBA Ultimate Mastercard gives me time-unlimited travel insurance (within the terms of the PDS), 3 points per $ spent overseas, no overseas fees and it's free if I spend more than $4000 per month (was $2500 until about now). As backups I have a Bankwest Mastercard (free but no points) and Latitude 28 degrees (ditto).

It pays to model your planned spend and travel activities and have goals for your points collection activities then come up with a combination that works for you.

 

[albyd]

If you want to go a local AMEX in the country that you're primarily living in to avoid the 3% fee, then possibly, best to apply through Amex's Global Transfer program. That does introduce FX risk if you're still being paid in $A and AMEX's MR program has differing levels of attractiveness depending on the country as each market's offering is different and they compete depending on what's available in that market (ie AU AMEX has the 3% fee as not enough "Premium" cards don't charge it yet but AMEX US has no FX fee as most cards in the US don't charge it).

There's alot to this - this thread might give you some food for thought:

Strategy to obtain US Amex

This will take time & patience, so either “Patience hurry up” or “Hurry up & wait”. This has not been tested & is a strategy that might work to obtain a US Amex Plat Business Charge Card with a USD$450 annual fee. The Australian version is quite a hefty annual fee in excess of AUD$1500...

www.australianfrequentflyer.com.au

The US Cards are particularly good though just depends on what the $A is doing against the $US (it's falling like a stone which isn't good for us Aussies).

YMMV.

 

[hexDoor]

If you want to go a local AMEX in the country that you're primarily living in to avoid the 3% fee, then possibly, best to apply through Amex's Global Transfer program. That does introduce FX risk if you're still being paid in $A and AMEX's MR program has differing levels of attractiveness depending on the country as each market's offering is different and they compete depending on what's available in that market (ie AU AMEX has the 3% fee as not enough "Premium" cards don't charge it yet but AMEX US has no FX fee as most cards in the US don't charge it).

There's alot to this - this thread might give you some food for thought:

Strategy to obtain US Amex

This will take time & patience, so either “Patience hurry up” or “Hurry up & wait”. This has not been tested & is a strategy that might work to obtain a US Amex Plat Business Charge Card with a USD$450 annual fee. The Australian version is quite a hefty annual fee in excess of AUD$1500...

www.australianfrequentflyer.com.au

The US Cards are particularly good though just depends on what the $A is doing against the $US (it's falling like a stone which isn't good for us Aussies).

YMMV.

Thanks for the link.

Can only pray that AMEX manage to convince themselves that people will spend more internationally if they remove the 3% fee + remain reasonable with their exchange rate.

I've heard that some of the the 0% international fee cards just recover what they lose by gimping the exchange rate so that it sometimes comes out being worse than just having the 3% fee. Don't have any concrete sources so take with a grain of salt but with the lack of transparency, could very well be true.

 

[_TheTraveller_]

Thanks for the link.

Can only pray that AMEX manage to convince themselves that people will spend more internationally if they remove the 3% fee + remain reasonable with their exchange rate.

I've heard that some of the the 0% international fee cards just recover what they lose by gimping the exchange rate so that it sometimes comes out being worse than just having the 3% fee. Don't have any concrete sources so take with a grain of salt but with the lack of transparency, could very well be true.

It's about 1% spread on US based cards. Factoring FX transfers it isn't worth it if you're not hitting the bonus categories.

I would be surprised if AU Amex waived the international fees anytime soon..