Stope foreign transaction fees with Capital One and Schwab

So I have the results of my foray into international transaction fee freedom! And it smells soooo good. It used to be that there were no fees when you went abroad. But banks got smart and started charging you for the privilege. Now, I am happy to say, some banks got even smarter.

Capital One credit card – FANTASTIC A+++

That’s right, you pay no foreign transaction fees for any international purchase. In the past, some stores overseas would ask if I wanted to pay in dollars or Euros, and it used to matter. But in the past few years, credit card issuers don’t care. If it’s a transaction made by a foreign company, you get billed. This means, my purchases from ASOS.com, Iberia, Spanair, and apartment rental agencies – bam, I got hit with a 3% foreign transaction fee every time. Now, with Capital One, on my statement, each foreign transaction lists its exchange rate which is generous to me, and there are indeed NOO additional fees. I love that. Plus, I got to put my own image on the card – a cute picture of me on a white and lavender background. With this card, ask for the transaction to be put through in the original currency instead of U.S. dollars when they give you the choice. You’ll likely get a better rate from Capital One.

Schwab High-Yield Investors Checking Account – FANTASTIC – A+++

I can’t help but rate these two options highly. Though Schwab doesn’t list the exchange rate on each transaction nor the original amount – so save your receipts – they refund any fee charged at the end of the statement cycle, and do not charge you either a % nor flat fee for the ATM withdrawal. For domestic use, it’s great for when you don’t feel like running around finding your bank’s ATM machine. For foreign withdrawals, I’m just ecstatic. My regular bank charges $5 PLUS 3% in addition to the average $5 foreign bank charge. For $300, that amounts to a sobering $19. With Schwab, nothing, nada, $0.

Warn your bank if you have foreign travel plans

Note that for any bank’s ATM card, you should your bank in advance – sometimes it’s called the Fraud Department – and tell them where and when you’ll be out of the country so they don’t block your account. That happened to me once, and I have to say it’s not fun.

I hope these policies don’t change, because I like being a happy traveler.