End the opt out

£2.8 billion — that's how much UK SMBs lost to hidden fees in 2023

Hidden fees are a big problem. Banks and other providers hide sneaky charges in inflated exchange rates and never tell their customers. There is a law that should force providers to be transparent and show “all costs and charges” but it’s being skirted.

And the story is even bleaker for Small and Medium Businesses (SMBs). A loophole — the so-called corporate opt out — allows financial providers to avoid applying any level of transparency to SMBs’ international payments at all. These are the same providers who claim to love SMBs…

We say it’s time to End the Opt Out. And we’re demanding stronger legislation too: no more hidden fees, no more loopholes.

In the last year alone, Small and Medium Businesses (SMBs) in the UK lost £2.8 billion to hidden fees on international payments. It’s unsurprising — but wrong — that over a quarter (26%) of SMBs are put off from expanding internationally by the high cost of international banking. The sector needs fair competition — and for that, it needs transparency.

Sign the petition Explore Wise Business

£2.8 billion

UK SMBs are losing

every year to hidden banking fees

Small businesses deserve better

We want to put an end to hidden fees in international payments once and for all. For too long, financial providers have been charging grossly unfair fees, hiding them in inflated exchange rates. This needs to end now, and the Government has an opportunity to do this in its upcoming Payment Services Regulations review.

Consumers are protected by a level of transparency for their international payments which, although patchy and not respected, does at least exist. However, SMBs aren’t even covered by these patchy rules — thanks to the Opt Out.

And without transparency, time-strapped SMBs can’t compare the market. That means no competition, higher costs and worse service. It’s a big problem and you can help solve it by signing our petition to End the Opt Out.

We’ve delved into the impact of this loophole on SMBs in our report ‘The £2.8 billion Business Problem’. Together with Censuswide, Wise surveyed UK SMBs, finding that 82% believe that regulation should encourage banks to be transparent about international payment costs.

SMBs should have the same protections as consumers - and both groups deserve full transparency on the costs of cross-border payments. Legislation needs to work for them – not just banks. It’s time to End the Opt Out.

Sign the petition Read the report

What do we want?

What needs to happen?

Sign our petition to end the opt out

Dear Prime Minister,

We the undersigned are delivering this petition to request that the Government ends the Corporate Opt-Out outlined in the Payment Services Regulations (PSRs) 2017 and Regulation 40(7), as part of its current review of the PSRs. In particular, the Corporate Opt-Out should not apply to transparency in cross-border transactions (Regulations 53 - 57 in the PSRs).

The Corporate Opt-Out significantly harms the ability for Britain’s small and medium-sized businesses (SMBs) to benefit from transparency requirements on international payments. In 2023 alone, British SMBs lost £2.8 billion to hidden fees and inflated exchange rates, which could otherwise be spent on hiring, product investment, expansion and marketing for these businesses.

The petitioners therefore request that these SMBs are treated the same as consumers, charities and micro-enterprises. In addition, HM Treasury should strengthen transparency language in the Payment Services Regulations, to ensure that financial institutions clearly show any and all exchange rate mark-ups or associated fees with an international transfer. This will ensure that consumers and SMEs know, clearly and up front, what they’re paying.

Signed,