I wanted to update you on what I believe is very vague disclosure of currency conversion fees by American Express. NOte the rate changed to 2.7% on Jan 11, 2009

This is just one example of my recent American Express Transactions;

On March 10, 2009 I was charged 303.75 CAD (Canadian Dollars). My American Express statement showed that I was charged $245.17 USD (US Dollars). The conversion factor for this transaction is 1.2389362 (303.75CAD/$245.17); this includes the effect of American Expresses 2.7%. When adding in the 2.7% conversion fee, the effective conversion rate was 1.2733157. The Interbank Rate per Oanda.com (the source American Express uses) on 3/10/09 was 1.29059. So what is the difference between the effective currency rate of 1.2733157 and the actual Onada.com rate of 1.29059?

This is one example and it happens continually with American Express, so your chart should be updated to reflect the actual rate American Express charges which in this case was 4%.

The back of my American Express Statement includes the following language regarding Currency Conversions:

“Transactions Made In Foreign Currencies:if you incur a charge in a foreign currency, it will be converted into U.S. dollars on the date it is processed by us or our agents. Unless a particular rate is required by applicable law, we will choose a conversion rate that is acceptable to us for that date. Currently, The conversion rate we use for a charge in a foreign currency is no greater than (a) the highest official conversion rate published by a government agency, or (b) the highest interbank conversion rate indentified by us from customary banking sources on the conversion date or the prior business day. In each instances increased by 2.7%. The conversion rate may differ from rates in effect on the date of your charge. Charges converted by establishments (such as airlines) will be billed at the rates such establishements uses.”

Oanda.com 3/10/09 CAD / USD conversion rate

, March 10, 2009
1 US Dollar = 1.29059 Canadian Dollar

1 Canadian Dollar (CAD) = 0.77484 US Dollar (USD)

Interbank rate +/- %

This means:
You buy 1 US Dollar : 1.29059 Canadian Dollar
You sell 1 US Dollar : 1.28989 Canadian Dollar
You buy 1 Canadian Dollar : 0.77484 US Dollar
You sell 1 Canadian Dollar : 0.77526 US Dollar
Median price = 1.28989 / 1.29059 (bid/ask)
Minimum price = 1.28095 / 1.28175
Maximum price = 1.30630 / 1.30670