WaMu raises fees on foreign debit card purchases

Thousands of travelers who use Visa and MasterCard debit cards issued by Seattle-based Washington Mutual will pay higher fees on overseas purchases starting June 5.

Washington Mutual notified customers that it will raise its fee from 1 to 3 percent on debit card purchases made in foreign countries, including Canada and Mexico. This means that if you use your debit card to make $5,000 worth of purchases in another country, you'll pay $150 in fees, up from $50.

The fee for credit card purchases and ATM/debit card withdrawals at foreign cash machines remains at 1 percent.

Visa and MasterCard International charge banks a 1 percent fee to process overseas transactions. Most banks pass that on, and some then tack on an additional 1 or 2 percent. The fees appear on billing statements as a separate charge.

Locally, Frontier Bank, First Tech, Boeing and Watermark credit unions are among those issuing debit and credit cards with only a 1 percent foreign transaction fee. Most national banks, including Bank of America, Wells Fargo and Citibank, charge 3 percent on both.

Carol Pucci: 206-464-3701 or cpucci@seattletimes.com