American express, warning!
 

A warning on using American express overseas. For those who think it tacks on a 2% currency conversion charge, this is far from the truth. Reality is closer to 5%.

I bought a ticket on Bangkok Air on the internet with stated price in US and THB underneath in parenthesis. For unknown reasons, my MC which I had used for other PG flights was being rejected. So had to use AmEx. This was charged in THB by AmEx despite the charge on screen listed as USD. So the final cost was $10 over the price listed on the website, a whopping 4.8% over the actual listed cost. AmEx does this with a combo of using a poor exchange rate (of their choosing as stated in the fine print) and a 2% fee.

I'm not sure why the AmEx charge was done in THB when the payment page listed USD. My previous flight paid by MC was charged in the USD as stated on the payment page.

Odd... I recently purchased plane tickets from an agent in Thailand and was only charged the usual 2% conversion fee by AmEx. Typically, AmEx uses the bank exchange rate which is a good rate.

I also used my am ex card for canada and also only got the 2% charge. I wonder if different am ex cards charge different rates?

As shown on your statement, nibblette, what was the price in THB, and what was the converted value in US$?

Price in THB 6705, charge by Amex $217. Primary price listed on website $207 and this appeared on the payment page when entering the CC info. The THB was listed as a secondary on the booking page. "Official" exchange rate on the day was 32.54THB: 1US$.

With the 2% add-on, Amex used an exchange rate of 31.5THB: 1US$. By using a lower exchange rate, they effectively added on another 3%.
MC rate for same day, 32.5.

This is not the first time I seen Amex use an unfavorable exchange rate. When in England, Amex used $2.05 when the official rate was just under $2. My MC used a rate almost identical to the official one.
In Amex's fine print, they state they do not use the official rate but one of their choosing based on rates around the time of posting (paraphrased).

there are all kinds of "official" rates....each company is different....plus the rates change often during a day...

i have always been very happy with my amex conversions all over the world...i hate the 2% but they are in the profit business....

next time call your credit card company before making the transaction..

foreign transactions done in thailand are, by law i believe, always processed in thai baht and then converted to your local currency at you home bank/credit agency....