This Avios-earning business credit card charges no foreign transaction or cash machine fees

Feb 20, 2020

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This story has been paid for by Capital on Tap, but the opinions are those of the author and TPG. This is one way TPG continues to provide our readers with free news and advice about travel.

TPG U.K. SPECIAL OFFER: Receive 15,000 Capital on Tap points after spending £5,000 by entering the promo code thepointsguy during the application process until 29 February 2020. Apply for the Capital on Tap Business Rewards Card here.

There are some great innovative personal travel debit cards in the U.K. that don’t charge any foreign transaction fees. But as they’re debit cards, they don’t usually earn rewards.

What about for businesses? If an employee travels and they need to make business purchases abroad, how can they do this without incurring substantial fees?

Most U.K. business credit cards that earn rewards charge a fee for making purchases in any currency other than GBP — usually around 2% to 3%. These cards may earn loyalty points at a rate of 1 point per £1 (equivalent) spent, which on the surface, might counteract the cost of the foreign transaction fee, though some U.K. business credit cards don’t earn points at all.

Related: What are points and miles worth? February 2020 monthly valuations

If that point earned is only worth 1p each, then you are paying 2p-3p per £1 spent in foreign transaction fees in order to earn back 1p worth of rewards points. So some businesses may choose to avoid using credit cards abroad and/or for purchases in currencies other than GBP.

This then presents a problem as to how legitimate business expenses should be made: with cash? Using the employee’s own debit card? Finding a travel card that does not earn rewards and issuing it to an employee?

(Image courtesy of Capital on Tap)

The Capital on Tap Business Rewards Card is a solid offering in the U.K. business card market to address these issues. First of all, you can issue up to 20 supplementary cards at no extra cost to your employees so they can take these with them and use them for business expenses at home and abroad. The purchases will pool into the primary cardholder’s account, who will be responsible for them. Secondly, all purchases earn Capital on Tap points, which can be redeemed for Avios, cashback or both.

You can read our full review of the Capital on Tap Business Rewards Card here.

But perhaps the best feature of the card is that is does not charge any foreign transaction or cash machine/ATM fees. This means that the card can be used for online purchases in currencies other than GBP or can be taken by travelling employees for business purchases abroad, earning points for every purchase, without any additional fees.

There are also no cash machine fees for cash advances, however, you should note that interest accrues on cash advances immediately, unlike purchases that come with interest-free terms of up to 56 days each statement period.

If you have been looking for a business credit card that earns valuable rewards without foreign transaction fees, the Capital on Tap credit card is a fantastic option.

You can apply for this card here.

Featured image by Capital on Tap

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.