It's still an ATM card with a bank or credit union that doesn't have an extra transaction fee. My small local credit union only passes along the 1% from VISA, for example, and I think the Schwab checking might actually even eat that, though I'm not sure.

1% over the interbank rate is about the best you're going to do.

My Schwab 2% card (no longer available) is technically better (2% bonus minus 1% fee means I come out a little ahead, actually), but I often just use cash anyway, as it's easier and less likely to take a piece out of the small merchants I invariably end up going to (if they take credit cards at all, which they often don't).