I received a tip from a reader today that Wachovia is set to increase their international transaction fees by 1% to 2% next month. Thank you!

“Beginning August 1, 2007, we are changing the International Service Assessment fee to 2% and amending our Debit Card Agreement and Disclosure by adding the following provisions:

Service Charges

Contact Wachovia before traveling internationally by calling 800-WACHOVIA (800-922-4684) for your Check Card. An International Service Assessment (ISA) fee will be applied to each international transaction (i.e. transaction occurring in any country outside the United States, Puerto Rico or the U.S. Virgin Islands), whether or not the foreign currency is converted. The current ISA fee is 1% of the transaction amount and may be included in the transaction amount or displayed as a separate transaction on your monthly statement.”

Wachovia seems to be following the general industry trend by raising their foreign transaction fees. Additionally these fees are being applied for all international purchases — not just ones where currency is converted. However dubious this may seem, many institutions claim that their costs are higher for international transactions. That said, if currency isn’t being converted, it goes without saying that their actual costs should be cheaper than if it was. With Wachivia raising their fees, that leaves an increasingly smaller number of institutions who only charge 1% or less for international transactions.