I've never seen this "buried" ATM fee, either. Out of curiosity, I've calculated my exchange rate upon my return. It's always been the institutional rate -- can't beat it.

As for the 3% charge on credit cards, I think too much is made of this. If you have an airline card, you're getting miles worth something to you -- at least 1.5%. Alternatively, if you get a card that hits you for only 1%, your improvement is a mere 0.5% or less (depending on how much you value the miles/points). That works out to <=$5 for every $1,000 you charge in foreign currency.

Thus, "extortion" might be a bit strong.