I can somewhat understand a foreign currency fee, but a foreign transaction fee is ridiculous. In the case of foreign currency fees, it's reasonable to assume there is some overhead in converting the currency. However, it's also reasonable to assume that it's under the standard 3% that most Visa/MC branded cards levy.

I've often wondered if the shift from foreign currency fees to foreign transaction fees hasn't been at least in part due the proliferation of DCC.

Ironically, 10 years ago, one might even have been incentivized to take DCC. The DCC offer was around 3% versus your card's 3% foreign currency fee. The card's 3% foreign currency fee wouldn't count towards your rewards whereas the entire amount, including the 3% DCC, would count. With a FTF, it's almost never* in the customer's interest to accept DCC.

* This is assuming there are no wild fluctuations in the exchange rate where the local currency rapidly appreciates. However, depending on the card used, the networks either take the exchange rate at the time of purchase anyway versus the transaction posting date.