Account disclosures
Overview
Periodically, states will update their laws to require businesses registered within to disclose certain business-related information that may not have been in effect when a company was originally registered. Since Brex serves customers across all states, any given update may end up impacting at least some subset of our users. Below are some recent examples of new state-issued disclosures.
New York state
State business disclosures
What: New York state law requires that we ask if a business applicant is a minority-owned business or a women-owned business Who: New Brex applicants with a New York state address Why: New York Department of Financial Services Rule 76.16 When: Effective August 8, 2023 New York law requires that we ask if a business applicant is a minority-owned business or a women-owned business. New York law also requires us to ask business applicants for their principal owners’ ethnicity and race. Applicants aren’t required to provide this information, but are encouraged to do so. We collect this information to help ensure that all applicants and communities are treated fairly and that their business credit needs are being fulfilled. Employees and officers making determinations concerning an application, such as loan officers and underwriters, may have access to the information provided on this form. However, we cannot discriminate on the basis of minority-owned business status, women-owned business status, or a principal owner’s ethnicity, race, or sex. We also cannot discriminate on the basis of whether an applicant provides this information. Reference link
California state
Rate and fee disclosures
What: California state law requires that business-to-business commercial finance providers offer rate and fee disclosures to customers based in California Who: Brex customers in California using card products Why: Details here When: Effective December 9, 2022 In late 2022, California enacted laws requiring that business-to-business commercial finance providers offer rate and fee disclosures to customers based in California. As of January 2024, these laws are also enacted in Georgia, Florida, and New York (enacted in August 2023, operationalized in January). This includes disclosure of a transaction’s annual percentage rate, amount financed, finance charges, payment methods, and repayment terms, including prepayment policies. More information on the specific law can be found here. This will impact Brex customers in California using card products. You can find your disclosure in your dashboard and via an email notification sent to all admins on your account. To acknowledge that you’ve read this, please make sure that you click I agree. This number includes some assumptions that are further explained in Footnote 1 of the disclosure. These assumptions may or may not be applicable to you. The footnote states that this disclosure assumes that:
- 10% of the customers’ transactions are charged in a foreign currency; and
- Those transactions are settled (paid) in US dollars, therefore incurring a currency conversion fee.
The conversion fee will not exceed 3% (this is currently included in our Card Terms, Section 1.6). If the customer does not conduct any such transactions, the fee does not apply. That footnote also includes an additional fee example in order to explain how the APR calculation works. We do not charge 9% fees today. We may charge up to 3% for the transactions described above.