I suspect what you thought being ATM fee is actually the infamous "conversion" fee that MANY MANY international ATMs charge - just like the DCC on credit card transaction, the Bank owns the ATMs would add a Conversion Fee to that, some are explicit to tell you that and how much the exchange rate is, some are very vague. I have experienced BOTH on my Schwab and Fidelity cards last November in Egypt and again this April in Spain.

Schwab's transaction acted exactly like what you had experienced - the reps told me the extra was Currency Conversion Fee. The issue was, there was NO such claim on the ATM screen, which just said a fee would be charged... Later I learned from TripAdvisor forum that in Cairo, only 2 banks did not automatically charge the Currency Conversion Fee which in some banks' cases, was up to 10%! Schwab though, eventually issued a credit as a courtesy for good customer service. I told the rep the lesson learned would be Take a picture of the ATM screen then it would have No Argument on what the customer saw on the screen - in my case, NO Currency Conversion was ever mentioned...

The ATM I used in Spain this April, very explicitly told me what currency I would choose with the fee - it even told me the exchange rate used, (a competitive rate) then a fee would be added on top of that... But there were options to choose whether you wanted the transaction be debited to your account in USD (NO! That would be "conversion") or in Euro.