I need a suggestion, guys. If I use my American Express credit card to purchase an air ticket in Nepal from Nepali travel agencies (like $1500), will my transaction become a 'Purchases' or the 'Cash Advance' transaction?? I would rather not use the credit card if it's gonna be a cash advance transaction coz then the APR will be very high!
If any of you have done such transactions in Nepal using a US credit card, more specifically an AMEX card in the past, please suggest me. I'd really appreciate that. Thanks.

When someone uses a credit card at a foreign country they are charged a foreign transaction fee. I believe for American Express cards the foreign transaction fee is 2% (check this with your card provider)

Thanks man for the info.

All credit cards except for Capital One charges you 3% ( not sure about Amex ). I don't think its considered to be Cash Adv. 

bidroh is right. its purchase not cash advance. i used capital one in nepal to make purchases and they did not charge me anything. to make sure, call your credit card company.

Call credit card company before you make the transaction as they may now know about you being in Nepal and may reject it assuming it is a fraud. Regarding the charge, you will be charge 2-3% as a foreign transaction fee. It will be treated as a regular transaction not cash advance.