Is buying goods from an American Web site cheaper with a UK American Express (Amex)?

Ashes777

Hi,

I sometimes buy goods from America through Web sites like PayPal and I've noticed something that's led me to wonder if you get a better exchange rate because an Amex is American and might deal with US dollars better.

To explain, if I am set to pay with my MasterCard, the PayPal price gets converted from dollars to pounds and shows the conversion rate. If before paying, I swap to paying with my Amex, it only shows the US dollar price but not the conversion rate.

What might be happening is that when I am paying with my UK MasterCard, the conversion is done right then, but perhaps with the Amex, the conversion is done when my credit card statement is due in which time the conversion rate has changed. It is just very hard for me to tell to be honest.

What does everyone think? I'm tempted to think with the Amex you might get a better conversion rate?

WelshRarebit

Probably not. Like most cards AMEX have a 2.99% loading for forex transactions.

If you have access to AMEX online account services there is an option in the menu onthe left hand side of the screen that says "Foreign Transactions". This allows you to put in the purchase value in foreign currency and then works out how much it would cost you in GBP at the current forex rate.

To be honest you'd be far better off getting a card which doesn't charge for foreign spending like the Post Office card.

Voyager2002

Ashes777 wrote: »

Hi,

I sometimes buy goods from America through Web sites like PayPal and I've noticed something that's led me to wonder if you get a better exchange rate because an Amex is American and might deal with US dollars better.

To explain, if I am set to pay with my MasterCard, the PayPal price gets converted from dollars to pounds and shows the conversion rate. If before paying, I swap to paying with my Amex, it only shows the US dollar price but not the conversion rate.

What might be happening is that when I am paying with my UK MasterCard, the conversion is done right then, but perhaps with the Amex, the conversion is done when my credit card statement is due in which time the conversion rate has changed. It is just very hard for me to tell to be honest.

What does everyone think? I'm tempted to think with the Amex you might get a better conversion rate?

Paypal also does the conversion sometimes, and of course uses its own exchange rate from which it makes some extra money. For some reason, when you use your Mastercard Paypal does the conversion and so charges a sum in sterling to your Mastercard, but when you use AmEx Paypal charges in dollars and so AmEx do the conversion. Since you note that the AmEx rate seems better, that suggests that Paypal gouge even more out of you.

Anyway, your best bet is to get a card that does not 'load' foreign currency transactions. Then, next time you use Paypal, go through the payment process slowly and carefully. You will see that they give you the choice whether they charge your card in sterling or dollars, and of course you choose dollars unless you want to pay the Paypal exchange rate.

jen245

Paypal processes all Amex payments in US $$, then Amex do the conversion, but as above, there will be a hefty loading fee, so you wont really be any better off.
Ive even noticed when I use my Amex card for a sterling transaction on Ebay, on my online card account, a really odd amount is reserved, but once it goes on my statement, the amount is correct.
I have a Halifax Clarity card, that I tend to use if im buying anything in US $$, as there are no loading/conversion fees, so I get the best rate on the day

JohalaReewi

jen245 wrote: »

Paypal processes all Amex payments in US $$, then Amex do the conversion

That used to be the case but now, paypal charge the transaction currency directly to Amex. So for USA purchase USD, for UK purchase GBP, for French purchase EUR, etc.