Wells Fargo has eliminated foreign transaction fees for transactions made by small businesses made outside the U.S.
The San Francisco company previously charged currency conversion fees of 2% to 3% on business transactions made abroad. It claims to now be the only major U.S. bank that doesn't tie transaction fees to its small business credit cards. The change took effect Oct. 1.
The move will support small businesses that want to operate globally in a cost-effective way, Wells Fargo said in a Wednesday news release.
"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," Lisa Stevens, head of small business, said in the release.
Wells Fargo did not provide its estimate for how much revenue it expects to lose from the decision.
Wells Fargo services about 3 million small business owners in the U.S. The initiative applies to new and existing holders of Wells Fargo Business Elite, Business Platinum and Business Secured credit cards, as well as for cards that access small business lines of credit.