I confirmed with Commerce Bank that they do not charge a foreign exchange fee for their VISA, only VISA's 1%. They have no plans to tack on their own fee.

Now for my next two questions.... I am renting a car in Israel in July. I have made the reservation here in the US and gave them my credit card information. Will I be charged the foreign transaction fee when I get the car in July? Also, does anyone know of a credit card (preferably without a large foreign exchange fee) that covers car rental insurance in Israel? VISA excludes coverage in Israel, Jamaica, Ireland and one or two other countries.