If you travel abroad or you plan to travel abroad in the future, then it is time for you to shop for a good Visa or MasterCard credit card that does not charge foreign transaction fees at all no matter what country you are visiting. Also, you should have a checking account that charges no fees for using an ATM anywhere in the world.

Most major U.S. banks charge a foreign currency conversion fee of 1% to 3% for any ATM transaction you make abroad. They sometimes add a fee of $1 to $5 on top of that. Also, most major credit cards charge foreign transaction fees for any transaction you make abroad. This can easily add up if you travel internationally a lot.

It gets worse, you will also end up paying fees and getting the worst exchange rates if you exchange U.S. dollars at some currency exchange stores found at the airports or in some popular tourist areas. Most of those stores make a big profit from those international travelers that are not prepared to avoid these unnecessary fees.

If you are one of those international travelers, then continue reading if you want to say NO to all these ridiculous unnecessary fees.

The trick to avoiding these fees is to have the following:

1.    An ATM or a debit card that has no foreign transaction fees and no ATM fees for using an ATM anywhere in the world.

2.    A Visa or a MasterCard credit card that has no foreign transaction fees for using the card anywhere in the world.

What bank offers an ATM card that has no ATM fees and no foreign transaction fees?

Before I recommend any bank, I want to clarify that none of the links in this post are affiliate links. With that in mind, below is a list of my favorite credit cards and checking accounts that I highly recommend for most international travelers.

Charles Schwab Investor Checking Account

With Schwab bank, you pay no ATM fees and no foreign transaction fees anywhere in the world. It is the best bank in the U.S. for most international travelers and in my opinion, every traveler should consider having this checking account with Charles Schwab Bank.

Why do I recommend Charles Schwab Investor Checking Account?

1.    No ATM fees. Schwab bank reimburses you all ATM fees at the end of the month. You can receive unlimited ATM fee reimbursements. For example, if an ATM machine in London charges you £5, Schwab bank will reimburse you that fee at the end of the month. No matter how many times you use the ATM machine abroad, Schwab bank will automatically reimburse all the fees charged by those ATM machines at the end of the month.

2.    No foreign transaction fees at all for using an ATM worldwide. You can withdraw cash in the local currency from any ATM machine in the world without worrying about the foreign transaction fees.

3.    You get the best conversion rate on currency when you withdraw cash in the local currency from any ATM machine abroad. Make sure you choose the local currency because some ATM machines abroad give you the option of receiving cash in the U.S. dollar or the local currency. You should always choose the local currency when withdrawing cash from the ATM machine abroad. This option will always give you the best currency exchange conversion rate ever.

4.    No minimum balance or monthly services fees.

5.    Excellent US-based customer service. I am always satisfied with the service they provide every time I call Schwab bank. The customer service always exceeds my expectations.

6.    Free online bill pay and free standard checks.

7.    Mobile check deposits. You can easily deposit checks from Schwab mobile app.

8.    FDIC-insured deposits up to $250,000

9.    You can link the account to your other bank accounts to easily transfer money in and out of your Schwab checking account. You automatically get a linked Schwab brokerage account. They don’t require you to use the brokerage account and they don’t charge you fees at all for it. By the way, Schwab offers some good low-cost index funds and that might be appealing to you if you are a fan of low-cost passive index funds. The expense ratio of their Schwab Total Stock Market Index Fund (SWTSX) is only 0.03%.

By having the above ATM/debit card from Schwab bank, you will no longer need to go to the currency exchange stores to exchange the U.S. dollars into the local currency and you will no longer pay any ATM fees and any foreign transaction fees and you will always get the best conversion rate on the currency when withdrawing cash in the local currency from an ATM abroad. In other words, this is really a fantastic deal that no other banks can beat.

Credit Check:  Schwab bank places a hard pull inquiry using Equifax or Transunion and ChexSystems when you apply for Charles Schwab Investor Checking Account.

What about credit cards? What are the best credit cards to use abroad?

I personally prefer to use Visa or MasterCard credit cards that come with a Chip-PIN technology and offers great travel protection benefits and charge no foreign transaction fees when traveling abroad. I usually carry a small amount of cash in the local currency to use at places that don’t accept credit cards. I use the Schwab ATM card to withdraw a small amount of cash in the local currency and I use credit cards for all other transactions if possible.