How To Save On Foreign Transactions

Are you a UK small or medium-sized business (SME) looking to buy the latest software or tools, but frustrated that payments for some products are only accepted in US dollars or Euros? If so, you're not alone. Many leading AI, SaaS, and productivity solutions only bill in foreign currencies, sometimes adding a hidden 2%–3% to payments via bank or card fees. But you don't have to simply accept these costs. Below you can discover your best options for buying global products while keeping control of your expenses.

The Problem: Foreign Transaction Fees

Most UK banks and traditional business cards automatically convert your pound payments into dollars or euros using their own exchange rate, plus a foreign transaction fee (typically 2%–3%). These fees can quickly erode your business margins and raise your true software subscription costs, especially when billed monthly. Should none of the below options be deemed suitable, then the best way to have full control over managing a currency fluctuation and any potential fees is to pay annually in one transaction.

Solution 1: Use Business Cards with No Foreign Transaction Fees

Many challenger banks and fintech providers now offer business cards (credit and debit) specifically designed to eliminate these hidden fees for UK companies. Example providers include:

• Wise Business Debit Card
• Airwallex Borderless Card
• Revolut Business Card

These cards let you:

• Pay for software in the merchant's billing currency (USD or EUR) with zero or minimal extra fees.
• Lock in competitive currency conversion rates, often far better than high street banks.
• Manage international spending directly from your business account.

Solution 2: Open a Multi-Currency Business Account

Multi-currency accounts empower UK SMEs to hold, convert, and pay out in US dollars or euros right from your online dashboard. Providers like Wise, Revolut, Airwallex, and WorldFirst let you:

• Hold balances in multiple currencies—including USD and EUR.
• Convert GBP to foreign currency only when the exchange rate suits you, not on the billing date—saving money by timing conversions.
• Pay for subscriptions straight from your foreign currency balance, entirely bypassing conversion and international card fees.
• Download invoices and track all expenses easily for accounting and budgeting purposes.

Solution 3: Automate Subscription Payments with Optimised Accounts

For UK SMEs needing automatic, monthly subscription payments in dollars or euros, traditional standing orders are not an option (as these can only be set up from UK current accounts in GBP). Instead, optimised multi-currency business accounts and payment cards offer smooth automation through these methods:

Recurring Card Payments (Continuous Payment Authority):

Most SaaS providers allow you to input your business debit or credit card details to enable automatic monthly charges (known as a Continuous Payment Authority or CPA). Cards issued by multi-currency accounts such as Wise, Airwallex, or Revolut Business can be used to pay directly in USD or EUR without foreign transaction fees. You simply provide the card details once; then the subscription provider charges your card automatically each month in the correct currency.

Automated Bank Transfers via Multi-Currency Accounts:

Some specialist multi-currency accounts (notably Wise and Airwallex) enable you to set up recurring international payments directly from your foreign currency bank balances. This means if your subscription allows payment by international bank transfer instead of card, you can schedule monthly payments to the vendor in their billing currency without manual intervention—functioning similarly to a standing order but for foreign currencies.

Benefits of Using These Accounts for Automation:

• Payments happen on time automatically.
• You avoid costly foreign transaction and currency conversion fees on each payment.
• You can preload your account with dollars or euros at favourable rates, locking in your costs.
• You gain better cashflow control by managing multiple currencies from one dashboard.
• Detailed payment records and invoicing make bookkeeping and VAT reconciliation easier.

In short, UK SMEs should leverage multi-currency business accounts and cards from providers like Wise, Airwallex, Revolut Business, and WorldFirst to automate monthly payments smoothly, cheaply, and hassle-free without standing orders.

Solution 4: PayPal or Specialist Billing Services

For some providers, you may be able to use PayPal Business with a preloaded foreign currency balance or leverage business billing platforms that support international payments. While these sometimes carry unique fees, they can be cheaper than bank cards for certain one-off purchases.

Quick Tips to Maximise Your Savings

• Always pay in the software provider's billing currency (e.g., dollars/euros), not GBP—this avoids expensive "dynamic currency conversion" rates.
• Watch for hidden fees: even some "international" cards add a markup—read the terms carefully!
• Consolidate subscriptions: Sometimes you can find UK-based resellers or negotiate for local invoicing if your total spend is substantial.
• Track all international purchases: Use specialist multi-currency accounts to simplify your bookkeeping and financial reporting.

Products for Fee-Free Payments

At AIforSME.co.uk, we only recommend tools and services that help UK SMEs work smarter—without unnecessary costs. A commission may be earned if you sign up through a link—at no extra cost to your business. AIforSME.co.uk only recommends solutions proven to help UK SMEs save on international payments.