US debit/ATM card with lowest fees for travel

I currently use the Charles Schwab High Yield Checking card, which reimburses all ATM fees charged by other banks (even internationally). It's a little bit of a hassle to set up as it requires you to have a linked (but free) brokerage account with them as well. And it's just ATM fees, foreign transaction or currency conversion fees still apply, as far as I know.

Consider a credit union. My CU charged no fees and used a favorable exchange rate when I traveled to France last year. Far better than the two banks my traveling companion wanted to use.

The conditions for the Charles Schwab card remain almost as good as indicated in @holden's answer from 2011. There are still no fees, and still total reimbursement of ATM fees. However, the fine print says that the conversion rate will be between 0.10% and 1.0% in their favor relative to some benchmark, depending on amount and currency. This is my primary go-to card for outside the USA.

Also worth mentioning (and was not so in 2011): the Discover card is now accepted outside the USA anywhere Diner’s Club is. Their website shows worldwide coverage; still absent in many places. There is a small DC logo on the back of the card; nevertheless I had it rejected at a restaurant in a hotel that takes DC, while the front desk of the same hotel had no problem. This card is terrible for ATM use as the withdrawal is treated as a cash advance, but I have had fairly good results with merchants because there is no conversion fee. And the purchases are eligible for whatever cash-back arrangement your card has generally. This card has no annual fee. Diner’s Club does. Go figure.

Bank of Internet USA (not to be confused with Bank of America) offers a free checking account which comes with an ATM card with no withdrawal fees. They also refund other bank's fees up to some small amount. I used their card in several countries in East Asia and Europe with no major problems. The only downside is that they will start charging a 1% currency exchange fee starting September 2011 (currently this is zero as well).

Typically, major U.S. banks charge huge fees, some hidden (e.g. Chase ATMs charge $5 fixed + 1% fee + 3% hidden exchange fee, in addition to destination bank charges, of course).

Avoiding destination bank ATM fees (overt and hidden) is also significant. If you have a specific destination in mind, try researching specific ATMs with low or no fees for foreign transactions.

I do know that Capital One does not charge a foreign transaction fee on their credit cards. I think they are the only major issuer that does not charge a foreign transaction fee. An Etrade debit card charges 1%. I have not found a debit card that does not charge a foreign transaction fee.

Minimizing ATM fees means carrying more cash around. I tend to carry a lot of cash but some people might not feel comfortable doing this.