Debit cards that don't charge fees for international conversions

I have a PMA account with Wells Fargo, and that ATM does not charge me a fee (or exch rate surcharge) for using foreign ATMs. However, the Wells Fargo credit card charges 3% over the Interbank rate for credit card purchases. I also have an account with a smaller local bank. They don't have a foreign currency exchange operation, so with both the CC and the ATM card, they pay the 1% to the "network" and pass it on to me - not quite as good for ATM usage, better for CC usage.

I really don't want another credit card. I'm looking for a debit card solution. Surely there must be one out there.

Actually I just looked at the particulars on that PMA account and it is your cheque card you're talking about isn't it? In that case they offer four free transactions outside the network and I assume there are no fees within the network?

I still think a Bank of America checking account with ATM card is the best you can do. If you withdraw Euros at BNP/Paribas banks in France and Pounds at Barclay's Bank in the UK, there are no ATM fees. The bank may now be charging the one percent "foreign transaction fee" which they didn't in the past (it's not entirely clear from their new terms and conditions effective June 1 -- a footnote says there MAY be a fee), but even with the one percent fee, that's about the cheapest Euros and Pounds exchange rates you are going to get.

Charles Schwab Bank is another possibility. If you open a free brokerage account and a free checking account with them, they claim that they will refund any and all ATM fees incurred, anywhere in the world. But, they do not refund that one percent foreign transaction fee. As a global solution, however, the Schwab account is better because you can use more ATMs at no fee. Bank of America will charge you $5.00 if you use a foreign ATM other than the ones I mentioned.

(Note: you do not have to actually use the brokerage account -- just open it and deposit $1,000, which you can withdraw later. Kind of silly, but obviously, their hope is that you will decide to buy some stocks.)

There really is no total solution that I can see. Sooner or later you are going to incur a fee somewhere.

I wonder if I were to get a PayPal debit card, make a deposit in my PayPal account, and draw on that if I needed to if the only thing I would incur would be the currency conversion charges? That is the only thing I incur through my PayPal account on international transactions now--no transaction fees for foreign exchanges.

Mark,
See http://flyerguide.com/wiki/index.php/Credit/Debit/ATM_Cards_and_Foreign_Exchange

Thanks for that. I have an inquiry into PayPal but it looks as though the PayPal debit card may not be such a bad deal according to that chart particularly since I have a Premier account.

Mark - I used my Capital One ATM card all over Greece, France and in London last year and was not charged any fees. I opened both an online savings and money market account, but they will only issue ATM cards on the money market. Once I faxed in the paperwork, I had the ATM card within 7-10 days.

We opened a Capital One Money Market account and linked it to one of our regular bank accounts. We transferred 10,000 into the Capital One account. We returned from a 30 day trip to Germany, Poland, France and Italy. We only charged a few items on their credit card account, but we took out 250-300 Euros everyday and paid cash for hotels and meals. The only fee was a $3.00 fee from a bank at the DTW airport. We did not incur a foreign transaction fee nor fees from the ATMs.

Check with your local credit unions about their debit cards. I always use a debit card from my small local credit union. They charge no conversion fee at all, nor do they charge a per-use fee for using an out-of-network ATM. If you find a local credit union with such a deal, you can open a checking account there and put your travel funds in it, withdrawing as you need it. Close the account, if you wish, when you return. I would recommend carrying two debit cards from different accounts in case you have a problem with one of them. I can't answer your question about the Paypal debit card because I don't know their policies. Perhaps you could contact them and ask directly.

Thanks guys for the suggestions and insight. I have contacted PayPal and am waiting to hear back from them. Of course getting them to actually answer my question is the first hurdle! The credit union idea had not occurred to me.

PayPal debit may not be such a good deal.

I have a Fidelity debit card which doesn't charge any fees. They maintain they will refund any charges that might come through. I have never had to test that claim. But I did use the card in the UK for charges with no fees. If I had used my BOA debit card in those shops, I would have been charged a fee.
You do have to maintain a certain balance in your core account as that s where they draw the funds from. It costs me nothing but I do have some money invested with them.

The other point to remember is take out the maximum each time you use an ATM to minimize the number of transaction fees you are charged by your bank. In the good old days, I would only take out a small amount at a time...
not any more!!!(this applies to before I got the Fidelity card)

Thanks Maryann.

I checked with capital One about the MM account with the ATM. They said they charge no fees but the ATM i.e. the bank might assess one. Did you guys stick to any particular network when making your withdrawals?

Nancy - I saw a comment like your on another posting. You mention put the money in a checking account. Can you only withdraw at a foreign ATM from a checking account, not a savings?

ATMs in Europe only withdraw funds from checking accounts. The machines don't give you the option of checking or savings like they do here.

First Republic Bank charges no ATM access fees and reimburse all ATM access fees charged by other banks.
No monthly service charge with a minimum monthly average balance of $2500.00. (I'm copying this off their pamphlet.)

I know right now there are no First Republic Banks in Tennessee, but just in case you can work it out, they are a great bank to work with. Have a great trip!

Mark - I never encountered a fee when using my Capital One ATM card in Europe. I just made sure I was using a regular bank ATM instead of one owned by a change bureau or other company.

I also use my credit union debit card. They charge the 1% conversion fee, but it was much cheaper than the other banks. I've used that in Greece, Britian, Belgium, Netherlands, Italy, Austria, Switzerland, Spain, France, and many other places with no additional fees. Once again, I look for a local or national bank ATM.

My local bank, Republic Bank in Louisville, KY, does not charge for foreign withdrawals and if the local ATM charges, they reimburse my account for the charges. So basically, my ATM withdrawals in Europe are all free.