UK companies paying US suppliers and software in dollars
A UK company with US software, ads and contractors pays in dollars every month. Paying each charge on a sterling card or wire converts every time. Holding dollars and paying locally costs less.
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Most UK companies have some US costs: cloud hosting, design and analytics software, ads on US platforms, a contractor in New York. Each is billed in dollars, and each is paid in a way that may convert sterling every time.
Where the cost sits
| Payment | Common route | Hidden cost |
|---|---|---|
| SaaS and cloud | Sterling card | Conversion on every charge, often a non-sterling fee |
| Ads | Sterling card | Same, on larger amounts |
| US contractor | International wire | Wire fee, conversion, possible intermediary fee |
| US supplier invoice | International wire | Same |
A month in numbers
A UK agency spends $9,400 a month in the US: $2,400 in software, $4,000 in ads and $3,000 to a contractor. On a sterling card with a 2.75% non-sterling fee, the $6,400 card spend costs about $176 in fees. A wire to the contractor adds a fee and a margin. Paying all of it from a dollar balance removes the card fees and the wire.
A simple setup
- Receive dollar revenue into a USD balance, or convert one amount a month at a known rate.
- Issue one card per vendor, spending from the USD balance, with a limit on each.
- Pay US contractors and suppliers by ACH in dollars.
- Keep receipts on the same ledger.
Paying into the United Kingdom: the local rail
| What | Detail |
|---|---|
| Local rail | Faster Payments |
| Run by | Pay.UK |
| Settlement | Seconds, 24/7; the scheme limit is £1,000,000, and each bank sets its own |
Bacs still carries most payroll and Direct Debits, on a three-day cycle.
Source: Pay.UK: Faster Payment System. Checked when this guide was last updated; the scheme's own page has the current figures.
Where Rivet fits
Rivet gives UK companies a USD balance with US details on the free Starter plan, unlimited digital cards spending in dollars with per-card limits, and payouts by ACH and to 120+ countries. Growth adds EUR and GBP details, physical cards and approvals. Rivet is not a bank; regulated partner institutions hold the funds. See virtual cards for ad spend and Cards.
Questions people ask
What is the cheapest way to pay a US supplier from the UK?
Pay in dollars from a dollar balance, by ACH where the supplier accepts it. If you have no dollar income, convert in one planned amount at a known rate.
Why do UK cards cost more on US subscriptions?
Many UK business cards charge a non-sterling transaction fee and convert at the network or issuer rate on each charge.
Do I need a US bank account to pay by ACH?
You need a provider that can send ACH payouts. Some multi-currency accounts do this for UK companies.
Do I need to collect forms from US contractors?
A UK company paying a US contractor may be asked for or may request a W-9. US tax reporting applies to US payers; ask your accountant what applies to you.
Sources
Alexia compares the accounts, cards and payment tools companies weigh before they switch, and writes Rivet's market guides for founders in a specific country. Prices in Alexia's comparisons come from each provider's own pricing page on the date given in the article, rules come from the regulator or tax authority that sets them, and every source is listed at the end.
More from Alexia M. →This article is general information, not legal, tax or financial advice. Rules and fees change; check the sources above and the provider’s current terms before you act on them.
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