The FINANCIAL — In a move that will help reduce expenses for U.S. small businesses that are doing business internationally, Wells Fargo on October 28 announced it has removed its foreign transaction fees on all business credit card and business line of credit access card transactions made outside the U.S. effective October 1. With this change, Wells Fargo is the only major U.S. bank that today does not charge a foreign transaction fee on all of its small business credit cards.
“More and more small businesses are finding opportunities to grow and operate in the global economy, and we want to help our small business customers do this as cost effectively as possible,” said Lisa Stevens, head of Small Business for Wells Fargo. “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. It’s another step in our ongoing efforts to help America’s small businesses succeed financially wherever they do business. At the same time, it will strengthen the value we offer our customers, which we believe can help us increase customer retention and draw new customers.”
The fee is eliminated for all new and existing customers with Wells Fargo Business Elite, Business Platinum and Business Secured Credit Cards and Wells Fargo’s small business lines of credit with access cards. Prior to this change, a foreign currency conversion fee (2-3 percent) was assessed when business credit card and line of credit customers used their card for transactions that originate in a foreign currency, according to Wells Fargo.
The savings for a business owner can add up. For example, a business owner with a Business Platinum Card who made over 500 foreign transactions totaling approximately $27,500 during a one-year period would save an estimated $800 during that period by not paying foreign transaction fees. As another example, a Business Elite Card customer who made over 1,200 foreign transactions totaling about $122,000 during a one-year period would now save about $2,400 per year without the fee.
The elimination of the fee is among recent Wells Fargo business credit product enhancements to provide more value to small business owners, including adding more earnings value to the optional business credit card rewards program. In addition, all Wells Fargo business credit cards and business line of credit access cards feature EMV chip technology and provide Zero Liability Protection for a greater level of security.