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!

In a surprise move today, the US Federal Government eased passport restrictions by waiving the requirement that required American Citizens to have passports when reentering the country from Canada, Mexico, the Caribbean, and Bermuda.
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A new, no frills discount airline Skybus is operating in the United States and selling flights for less than $10 a ticket. For such a cheap ticket there are a few catches of course: no food, limited amounts of checked luggage, no assigned seating, and all flights route through Columbus Ohio. The concept will be immediately familiar to anyone who’s traveled on a similar discount airlines in Europe. For European airlines such as EasyJet and RyanAir it’s not uncommon to get flights for as little as for €1 or £1. If you’ve traveled on one of those airlines you know what I mean when I say don’t expect the same level of ’service’ you’ve been receiving on other airlines.

For example, with Skybus, there is no toll-free number for you to call. In fact, there’s no phone number at all. Email only. According to their FAQ page here’s what to do if you have a complaint:

We’d love to hear from you. You can send us a message by filling out the form that’s on our Contact Us page. We can’t guarantee a personal response to your message, but rest assured it will be delivered to a real Skybus employee.

In other words, they’ll read it, but you’ll probably get an automatic reply. Here are a few more caveats:

In flight entertainment? “Bring a book”
Canceled Flight? You’ll get a refund.
Delayed? “Don’t be Late. We won’t wait and we’ll leave without you.”
Hungry? Eat before you leave. “Don’t Sneak Food Onboard.”
First Class Seating? Pick your own seat. $10 to get to the front of the line.

Anyway, it’s entertaining reading even if you’d never fly with them. And for some people wanting what the Europeans have had for years, it will be perfect. Rumor has it that Skybus sold 97,000 seats on the first day of this offer alone.

New government regulations requiring a passport for US citizens to re-enter the country by plane from Canada, the Caribbean, and other countries have resulted in a surge of passport applications. Though predictable, the State Department’s passport offices are now overloaded with work. The result? Long wait times and long lines for people needing a passport. In fact wait times have nearly doubled. The expected wait time on an “expedited” application is nearly one month!

You can still get a passport on the same day, but you have to go to one of these passport offices in person. Additionally, you can only get a same day passport if you are expecting to travel internationally within the next two weeks.
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Custom House, a Canadian company specializing in foreign currency exchange, announced a ‘next generation’ travel card that they claim offers special benefits and low exchange rates for international travelers. The new travel-card targets Canadian customers but also offers some services that American citizens can take advantage of. Below is a recent press release:
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In a move that has riled British and European air travelers, foreign passengers who have used a credit card to book a flight could have their credit card and email accounts inspected by the Department of Homeland Security.

The extent of the demands were disclosed in “undertakings” given by the US Department of Homeland Security to the European Union and published by the Department for Transport after a Freedom of Information request. [read more...]

However, foreign travelers are not alone. The US government has been quietly assigning US citizens who travel internationally a “terrorist risk rating.”

Virtually every person entering and leaving the United States by air, sea or land is scored by the Homeland Security Department’s Automated Targeting System, or ATS. The scores are based on ATS’ analysis of their travel records and other data, including items such as where they are from, how they paid for tickets, their motor vehicle records, past one-way travel, seating preference and what kind of meal they ordered. [read more...]

Many of the details of the program are unknown. While privacy groups fret, the government asserts that the programs are vital to national security. For better or worse, it seems one thing is certain: If you’re traveling to or from the United States, you’re not the only one watching how you spend your money.