In this article I’ll go over the best banks for foreign debit card transactions and ATM withdrawals.
When you’re traveling abroad, paying a premium in foreign transaction fees on your credit card is nothing new. But even savvy consumers might not know that debit card transactions, including ATM withdrawals, can also be subject to expensive transaction fees. Smart cardholders can avoid paying too much in debit card foreign transaction fees by reviewing the fees charged by different banks.
Update 11/15/2024: Foreign ATM fees still current.
Updated 9/15/2024: Foreign ATM fees updated.
Other helpful bank guides:
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International Debit Card Transactions/ATM Withdrawals
Generally, there are two types of fees associated with foreign debit card transactions:
- Flat fees charged per transaction: These are typically a fixed-dollar-amount fee charged for every ATM withdrawal or transaction. The flat fee usually ranges from $2 to $5. This is similar to the type of fee most banks charge for out-of-network ATM transactions.
- Foreign transaction fees: This is a conversion charge levied by the bank for transactions conduction in a foreign currency. This kind of fee is usually charged as 1% to 3% of the total transaction.
Banks also have two ways of applying foreign transaction fees:
- When making an ATM withdrawal, banks will usually combine both types of fees. This means you pay the flat fee for using your debit card at a foreign ATM, plus you pay a percentage of the total amount of cash you withdraw. If you use your debit card in a transaction outside of an ATM, you’ll still pay the foreign transaction fee, but not the flat ATM withdrawal fee.
- Less commonly, banks will charge only a flat fee for ATM transactions. These banks usually charge a percentage fee, but not a flat fee, for other foreign transactions.
Best Banks With Lowest Fees For International ATMs
Let’s take a look at the banks with the lowest foreign transaction fees.
Charles Schwab Bank
The Schwab Bank High Yield Investor Checking Account will reimburse any ATM fees from cash withdrawals worldwide, regardless of the network used. And there are no currency conversion fees for debit card transactions in a foreign currency.
Do an online search and you’ll find this account is a treasure for traveling abroad. It’s a Visa card and acceptance is great.
Applying for this account is done online and very easy. You’ll need to open a brokerage account with Charles Schwab and link the Checking account to it. You don’t need to put a dime into your brokerage account or have any activity.
Read more about the Charles Schwab Checking account and it’s current bonus offer.
Fidelity Cash Management Account.
Get reimbursed for all ATM fees worldwide when using the Fidelity Debit Card as part of a Fidelity Cash Management Account. Access cash at more than one million ATMs worldwide, anywhere you see the Visa®, Plus®, or Star® logos.
Unfortunately, for transactions outside of the country, a 1% foreign transaction fee still applies.
Read more about the Fidelity Cash Management Account.
TD Bank Beyond Checking
TD Bank is an established traditional banking institution established in 1852. They have around 1,300 branch locations in the United States.
The TD Beyond Checking account is now one of their best featured Checking options. Here’s why we like this account:
- TD Bank fees are waived at all ATMs. This includes TD ATMs and non-TD ATMs. And, both domestic and international ATMs.
- Surcharges from non-TD ATMs will be reimbursed when you keep at least a $2,500 daily balance. This includes surcharges at international ATMs as well.
- TD does not charge an International Service Assessment (ISA) fee.
- Keeping a $2,500 daily balance will also waive the monthly fee for this account.
- And, you can earn a $300 bonus when you receive direct deposits of $2,500 or more within 60 days of account opening.
Read about the Beyond Checking account and its $300 bonus.
Betterment Checking: No-Fee Online Checking
Betterment has launched it’s Betterment Checking account and it’s now one of the top free Checking account options.
- All ATM fees reimbursed worldwide
- Get ATM fees reimbursed directly to your account without lifting a finger. This is every ATM, worldwide, where Visa is accepted. After you’ve withdrawn your cash, you’ll get a push notification confirming that the fee will be reimbursed by Betterment.
- Visa foreign transaction fees reimbursed
- They’re reimbursing Visa’s 1% fee on foreign transactions, purchases, and ATM transactions. Put this together with the worldwide ATM fee reimbursement and you’ve got an amazing travel companion card.
- No monthly maintenance fees, no minimum balances, and no overdraft fees
- Mobile Check Deposit is available for all Betterment Checking users
- Checking is FDIC insurance up to $250,000
Get more details on the Betterment Checking account at Betterment.com.
Capital One 360
This is Capital One’s online-only banking option. Capital One 360 customers don’t pay any flat fees nor any foreign transaction fees when using their debit cards abroad. According to Capital One, MasterCard may assess a percentage fee, but it’s “covered” by Capital One.
Keep in mind that this only applies to Capital One 360 customers; consumers who bank with Capital One through a physical branch are subject to normal foreign transaction fees.
Capital One 360 will not, however, reimburse fees charged by an out-of-network ATM operator.
See the current sign-up bonuses from Capital One 360 here.
CitiBank
Banking with CitiBank means you can use your CitiBank card to withdraw cash at CitiBank-branded foreign ATMs with no additional fees of any kind. Customers of CitiBank will pay a $2.50 foreign transaction fee plus a 3% conversion charge on any out-of-network ATM transaction.
But, there’s good news: CitiBank has a large international presence, and they’ve made it easy to find a CitiBank location abroad online at this page. CitiBank also offers sign-up bonuses as well.
Wise
Wise is the cheap, fast way to send money abroad. This service is very popular with expats and digital nomads while they’re living or traveling overseas. You’ll get the real exchange rate with the low fee they’re known for.
More ATM Fees Data With Common Banks
Here’s more foreign ATM withdrawal fees and foreign purchase fees data on other major banks.
| Bank | Foreign ATM Withdrawal Fee | Foreign Debit Purchase Fee |
|---|---|---|
| Alliant Credit Union | 1% (up to $20 ATM reimbursement) | 1% |
| Ally Bank | 1% | 1% |
| Bank of America | $5 + 3% | 3% |
| Bank5 Connect | None (reimburses up to $15) | 1% |
| BBVA Bank | $2.50 + 3% | 3% |
| BMO Bank | $2.50 + 3% | 3% |
| Capital One | $2 + 3% | 3% |
| Chase Bank | $5 + 3% | 3% |
| Citibank | $2.50 + 3% | 3% |
| Citizens Bank | $3 + 3% | 3% |
| Fifth Third Bank | $5 + 3% | 3% |
| HSBC Bank | $2.50 + 3% (waived for Premier Checking) | 3% (waived for Premier Checking) |
| KeyBank | $5 + 1% | 1% |
| M&T Bank | $5 + 3% | 3% |
| PNC Bank | $5 + 3% | 3% |
| Regions Bank | $5 + 3% | 3% |
| Santander | $6 + 4% | 4% |
| TD Bank | $3 | None |
| Truist Bank | $5 + 3% | None |
| Union Bank | $5 + 2% | 2% |
| U.S. Bank | $2.50 + 3% | 3% |
| Wells Fargo | $5 + 3% | 3% |
Final Thought
Traveling abroad is more than just an opportunity to explore new destinations; it’s also a journey into the world of foreign transactions. As someone who’s had my fair share of globetrotting, I can tell you that there’s nothing worse than returning home to discover a plethora of unexpected fees on your bank statement.
Remember the thrill of withdrawing money from an ATM in a foreign land? The joy of purchasing souvenirs with your debit card? Now, imagine the sting of realizing those transactions came with a hefty price tag. Trust me, I’ve been there, and it’s not a pleasant feeling.
So, if you’re gearing up for an international trip, allow me to share a few pearls of wisdom:
- Engage with Your Bank: Before you even set foot on foreign soil, have a chat with your bank. Ask about their policies and see if they offer any waivers for regular or premium customers. Who knows, your loyalty might just pay off.
- Partnerships Matter: If your bank has partners or branches in your travel destination, make use of them. Not only can they be more welcoming, but using partner banks might also save you some money.
- Beware of Hidden Predators: Foreign ATM operators can be sneaky with their fees. Don’t be caught off-guard. If an ATM warns you about a charge, take a moment to reconsider whether that withdrawal is worth it.
- Knowledge is Your Best Defense: Equip yourself with knowledge. Know the ins and outs of your bank’s policies, and don’t hesitate to consult guides like this one to familiarize yourself with the best banking options for international travel.
Life’s too short to worry about hidden fees and unexpected charges. Take it from someone who’s learned the hard way: a little preparation goes a long way.
*Tip: Don’t forget to always have merchants charge you in the local currency vs. US dollars when traveling abroad.
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You left out Fidelity Cash Management account Visa debit card. No domestic or foreign ATM fees(all reimbursed) and no foreign conversion or service fees on withdrawals.
Good stuff. Thanks James!