Wells Fargo Stops Foreign Transaction Fees on Small Business Accounts
Wells Fargo has announced it is eliminating foreign transaction fees for small business credit cards and business lines of credit, effective October 1 of this year. This action will make Wells Fargo the only major bank in America to not charge an international transaction fee for all of its small business credit cards.
Foreign transaction fees are charged to United States-based accounts when the funds from the accounts are used in other countries. The fee is designated to cover the conversion from U.S. dollars to the currency of the other country. The value of the fee varies from one credit card issuer to the next, but they can be as high as 3%. Wells Fargo’s Business Account Fee & Information Schedule, last updated in July, 2015, shows a foreign transaction fee of 3% on business accounts.
Removing this fee could save some small businesses thousands of dollars a year in international purchases.
“Reducing the expense of credit for purchases outside the United States–whether it’s for foreign travel expenses or for buying materials overseas–makes international business more economical for a small business and will add more money to their bottom line,” said Lisa Stevens, head of the Small Business sector for Wells Fargo.
The fees are removed for Wells Fargo Business Elite, Business Platinum and Business Secured Credit Cards, as well as all business lines of credit that come with access cards for the account. All of these cards have been upgraded with the latest smartchip technology, making them usable in most European countries.