I received my monthly First USA statement today and it came with a nasty little surprise inside. They are increasing their foreign currency transaction fee to two percent effective April 1. I believe that the fee was previously one percent.

This is unfortunate because First USA previously had one of the lower fees in this area. I may just dump it next time my annual fee comes due. I primarily use my Starwood Amex anyway, but need to carry a Visa for those times when Amex is not accepted. The Amex fee is only $30 (waived for the first year) with a two percent foreign currency transaction fee. I'm considering a switch to the Amtrak Guest Rewards Visa which has no annual fee and earns points that can be converted into UA miles on a 1:1 basis.