The 7 Most Common Business Credit Card Fees

Article originally published on February 21, 2018, and updated on May 3, 2023.

A business credit card can be a great tool to help you build your company’s credit, earn business-specific rewards, and keep business and personal finances separate. Unfortunately, it can also be a great way to rack up unwanted fees — if you don’t choose and use your business credit card wisely.

Business credit cards are exempt from certain consumer protections afforded to personal credit card users through the Credit Card Act of 2009. Unlike a personal credit card, there is no limit to what a credit card company can charge a business credit card user in fees.

Though many credit card issuers voluntarily extend consumer protections to business card customers, it’s important to read the fine print before signing up for a credit card. You can find out about possible fees by checking a credit card’s terms and agreements or by contacting the issuer.

If you’re shopping around for a business credit card, here are a few possible fees to factor into your decision.

1. Business Credit Card Annual Fee

Some business credit cards, like consumer cards, charge a yearly fee for use of the card. This annual fee is automatically deducted from the account each year. To understand the card’s true cost, weigh the annual fee against its benefits and rewards. Generally, the higher the annual fee, the more benefits a card should offer.

While some issuers will waive the annual fee the first year as a sign-on incentive, remember that the annual charge will follow you for the life of the card, whether or not you continue to take advantage of its rewards.  If you’re looking for a card with no annual fee and competitive rewards, check out the Zions Bank AmaZing Business Visa^® credit cards.*

2. Business Credit Card Late Fee

Because there is no legal limit on the amount business credit cards can be charged in late fees, check with the card issuer before you commit to a card, and certainly before you make a late payment. Opt for automatic payments to avoid late fees.

3. Business Credit Card Balance Transfer Fee

A credit card balance transfer — paying off one credit card with another — can be a smart strategy for a small business owner who needs more time to pay off debt or wants to transition from a personal credit card to a business card. Before you sign off on such a transaction, however, calculate the cost of the balance transfer fee, which is typically 3 to 5 percent of the transfer amount; the upfront fee may offset the potential savings.

4. Business Credit Card Cash Advance Fee

When your company needs fast cash, you may be able to use your credit card for a short-term cash loan at an ATM or bank. But keep in mind that a cash advance can be a costly transaction. You will be charged a percentage of the amount you borrow (usually 3 to 5 percent) or a minimum flat fee (often $5 to $15).  In addition to the cash advance fee, you may have to pay a fee to the owner of the ATM or the financial institution that gives you the advance. 

5. Business Credit Card Foreign Transaction Fee

Choosing the wrong credit card can cost you beaucoup bucks in foreign transaction fees if you frequently do business abroad. Some carriers charge a fee of up to 4 percent for transactions completed in a foreign currency. If you plan to use your business credit card for purchases overseas, scout out a card with minimal foreign transaction fees.

6. Business Credit Card Over-Limit Fee

Though nearly extinct in the personal credit card world, a handful of business credit cards continue to charge fees to customers who exceed their credit limits. While personal credit card customers can’t be charged an over-limit fee unless they opt in to be allowed to exceed their credit limit, the same isn’t true for business credit card customers.

Also, caps on penalty fees, including over-limit fees, don’t apply to business credit cards.  Factor in over-limit fees as you compare credit card costs, and once you have been approved for a card, make sure to stay well under your borrowing limit.

7. Business Credit Card Penalty APR

While annual percentage rates (APR) are generally displayed clearly and prominently in advertising materials, “penalty” or “default” APRs can be hard to find if you don’t know where to look. Many issuers apply penalty APRs of nearly 30 percent when a payment is missed, late, or returned unpaid. This increased rate is often in place indefinitely, and applies to all outstanding balances and future transactions. You can find Penalty APRs listed among other fees, terms and conditions in the “Pricing and Terms” section of business credit card applications.

Not sure which business credit card is right for your business? Compare Zions Bank’s AmaZing business credit cards, which come with terrific benefits and no annual fee. Visit your nearest Zions Bank branch location to apply.

*Subject to credit approval. Terms, conditions and restrictions apply. See banker for details.