I received an interesting email from a reader detailing an exchange he had with HSBC about some upcoming changes to their foreign transaction fees. Part of that email reads:

I spoke this morning with an HSBC customer service representative who informed me that the bank intends to increase its currency conversion fee to 3% from 1% soon. I asked the source of the information and he said it was disseminated internally to the staff. I had called to inquire if the ATM card issued to HSBC Direct customers (I’m thinking of becoming one) also could be used overseas. He affirmed that it could, and that HSBC would not assess a fee. I then asked whether the currency conversion fee is 1 percent. He said that it currently was, but that it would increase to 3 percent, perhaps in about two weeks.

HSBC is a popular choice among international travelers because of their expansive network of worldwide banks and attractive fee schedules. However, if it is true that HSBC is going to follow through with this rate hike, their fee schedule won’t look so hot unless you happen to be a premiere customer. As the number of national institutions offering low fees for international banking dwindles, it’s worth reminding readers that many smaller banks and credit unions still have good offers for international travelers. But it’s always a good idea to double check with your financial institution what their rates are, no matter what size, to avoid unpleasant surprises!