Source: https://rivet.global/blog/uk-company-paying-us-suppliers-in-dollars
Published: 2026-07-19 · Updated: 2026-07-19 · By Alexia M.

# UK companies paying US suppliers and software in dollars

How UK companies pay US suppliers, contractors and software subscriptions in dollars: card FX fees, international wires, ACH payouts and holding a USD balance.

## Key takeaways

- A sterling card used for dollar charges converts each one at the issuer's rate, often with a non-sterling transaction fee.
- Paying US contractors by international wire costs a fee and puts conversion in the middle; ACH payouts in dollars do not.
- Holding a USD balance, funded from dollar revenue or one planned conversion, removes the per-charge conversion.
- A card per vendor with its own limit keeps software and ad spend under control.

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

1. Receive dollar revenue into a USD balance, or convert one amount a month at a known rate.
2. Issue one card per vendor, spending from the USD balance, with a limit on each.
3. Pay US contractors and suppliers by ACH in dollars.
4. 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](https://www.wearepay.uk/what-we-do/payment-systems/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](/blog/virtual-cards-for-ad-spend) and [Cards](/corporate-cards).

## Questions

### 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.