Business credit cards with no foreign transaction fees: what to know

If you’re running your company across borders, FX fees can easily cut into your margins. Whether you’re buying from international suppliers, paying for software priced in dollars, or sending your team abroad, a foreign transaction fee is likely riding on every one of these payments. But some business credit cards can help you avoid that fee completely. 

This guide breaks down what foreign transaction fees are, what they really cost you over a year, how no-FX-fee cards work and what else to weigh up before you choose one.

What are foreign transaction fees on business cards?

A foreign transaction fee, sometimes called an FX fee or non-sterling transaction fee, is a charge applied when you spend in any currency other than sterling. Your card provider adds it on top of the exchange rate, as a percentage of the transaction.

But it can catch even the most finance-savvy businesses out. 

You'll typically be charged an FX fee in the following scenarios.

1. Making purchases abroad on a business trip

2. Paying a foreign currency invoice to an overseas supplier

3. Buying from an international website or marketplace

4. Renewing international software subscriptions priced in another currency

The key thing to know is that FX fees are separate from the exchange rate. Your provider converts the purchase at a wholesale rate, then adds the FX fee as an extra slice on top. So even a small percentage quietly inflates the cost of everything you buy in another currency.

Typical FX fees in the UK

Foreign transaction fees on UK credit cards typically sit around 2-3% of the transaction value¹. The exact charge varies by provider, but many mainstream cards apply a fee close to this level on non-sterling transactions. 

Some cards may waive the fee altogether, which is why businesses that spend regularly in foreign currencies often compare FX charges before choosing a card.

How much FX fees cost a business

Let's make it real. At a typical 2.99% FX fee, here's what that surcharge can add to everyday business spending. With the rough estimates below, we can get a sense of the costs involved:

1. £10,000 overseas stock order: About £299 on top

2. £3,000 of flights and hotels for a team trip abroad: About £90 on top

3. £500 dollar-priced software renewal: About £15 on top

Of course, this money spent on FX fees doesn’t buy you anything. Not extra stock, a better hotel or anything else your business can use. It's working capital lost to a percentage that can often go under the radar on statements.

Now picture this pattern repeating. A foreign supplier invoice here, a software renewal there, the odd trip across the year and it can become a substantial amount over a full year - money that you could put to good use investing in your business. 

FX fees can add up in the background, and the more you spend where other currencies are involved, the more you’re out of pocket.

But it doesn’t have to be this way any more. The more you spend in foreign currencies, the more an FX fee costs you, BUT the more you stand to recoup by taking the right action.

How no-FX-fee business cards work

Some business credit cards can help you avoid a foreign transaction fee altogether. This added percentage simply vanishes from your foreign currency spend.

One thing to keep in mind though is that no FX fee doesn't mean no exchange rate. Your purchase is still converted from the foreign currency into sterling, often at the card network's rates, such as Visa. What does disappear is the extra fee layered on top of that conversion. You still pay the exchange rate to swap currencies but you stop paying your provider an added premium for the privilege.

For a business spending regularly in other currencies, this is exactly where the saving lives. Remove a 2.99% fee on £48,000 of foreign spend and you hold onto roughly £1,435 that would otherwise have slipped away.

Who needs them

A fee-free business credit card abroad helps anyone spending in foreign currencies. But the saving scales with how much you spend abroad. The more of your costs sit in dollars, euros, Japanese yen, Mexican peso or anything else, the more you stand to gain by choosing the best card option for your business - or lose without doing so.

Key examples of businesses who could benefit the most include the following.

• Importer or wholesaler: Paying overseas suppliers in their local currency

• Business with an international software stack: Think hosting, design tools or ad platforms billed in dollars

• Company with frequent business travel: Covering travel expenses, hotels, meals and event fees abroad

If your overseas spend is occasional, a one-off trip or a single foreign invoice a year, the FX fee matters far less, and other features may carry more weight in your decision. So it’s best to be honest about your real currency mix before you lean too hard on this one factor.

What else to check beyond FX fees

Here's the catch. A no-FX-fee card isn't automatically the cheapest card. Pick on the foreign transaction fee alone and you could pay more elsewhere. Other costs can quietly outweigh any savings made, so it pays to see the full picture.

Funding Circle's guide to business credit card rates, fees and charges breaks them all down.

APR, cashback, eligibility

Before you commit, weigh up the following five things to get a better picture of pros and cons.

1. APR: If you carry a balance month to month, interest can cost you far more than any FX saving

2. Annual fees: Since some fee-free-abroad cards charge a yearly fee that eats into the benefit

3. Cash-withdrawal charges: Which often apply abroad on top of, and separate from, foreign exchange fees

4. Cashback and rewards: Where a card that pays you back on every purchase can tip the maths in your favour

5. Eligibility: So you know you qualify before you apply

On this last point, it helps to know a provider's criteria upfront. The Funding Circle Cashback business credit card, for instance, is open to limited companies that are UK-based, with at least 1 year of trading history and an annual turnover of at least £30,000.

Knowing where you stand saves a wasted application, and tells you why a card might not be the right fit just yet.

Funding Circle and foreign transaction fees

The Funding Circle Cashback business credit card charges no foreign exchange fees on international spend.

• Spend in any currency, anywhere Visa is accepted, and you won't pay a non-sterling surcharge, though foreign transactions are still subject to Visa's exchange rates.

• You'll also earn 2% cashback for the first 6 months, up to £2,000, then 1% uncapped cashback on everything you spend after that. 

• There are no annual fees, and you get up to 42 days interest-free credit. 

Combining cashback with no FX fee can help you save more even as you avoid extra costs. Explore the Funding Circle Cashback card and check your credit limit without affecting your credit score, if you're a limited company.

Rates start from 14.9% per year, with a representative 34.9% APR (variable).

FAQs

Do business credit cards charge foreign transaction fees?

Many do, typically around 2% to 3% of each non-sterling purchase, added on top of the exchange rate. But not all. Some business credit cards, including the Funding Circle Cashback card, waive the fee completely on international spend.

How much can no-FX-fee cards save?

Consider a business that spends £35,000 a year with overseas suppliers and software providers. At a 2.5% foreign transaction fee, that's £875 a year in additional charges. Switch to a card with no FX fee and this cost disappears. Note, rates vary from provider and customers should do their own research.

Does no FX fee mean no other charges?

No. You'll still pay the exchange rate to convert currencies, usually the card network's rate. Other costs, like APR on a balance you carry or cash-withdrawal fees, can still apply. Always look past the FX fee to the full cost of the card.

02/07/26: While we want to help as much as we can, the information found here is provided solely for informational purposes and should not be considered financial or legal advice. To the extent permitted by law, Funding Circle does not accept any liability for any loss or damage which may arise directly or indirectly from the use of, or reliance on, the information contained here. If you have any questions, please speak to your professional adviser or seek independent legal advice.