Who do account disclosures impact?
In late 2022, California enacted laws requiring that business-to-business commercial finance providers offer rate and fee disclosures to customers based in California. 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.
Understanding the APR
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.