my credit card bank charges me 1% extra for sales in foreign currencies, which is ok for me.
3% is a little much imo

i know i'm a little late
but your math is quite incorrect

Agreed. At best would be 103% are really 100% :)

Last time I checked Paypal's Euro-Dollar exchange rate it was a 4.5% fee above the exchange rate at that time.
I think the fee on the exchange rate by my bank was 1.5%.
Edit:
typo removed.

Well, the only card I could even find searching that does not charge transaction fees is Capital One.

Actually at this level his approximation is pretty good (not entirely accurate though), we'll use a $10 game as an example:
($10.00 - 15%)+3%
15% of $10.00 = $1.50
$10.00 - $1.50 = $8.50
3% of $8.50 = $0.255
$8.50 + $0.255 = $8.76
= -12.4%
So he only saves 12.4% off the "marked price" but seeing as his 3% fee would get him on a full priced game, too, that would be $10.30, which is $1.54 more than the total price of his game at 15% off.

i understand the math, but the last two sentences you wrote are exactly what make the point invalid. the transaction fee is there for the full price of the game as well as the sale price. you save slightly less than the 15 percent, true, but the 12 percent claim is erroneous.

And why would you consider the "marked price" without fee but not the "marked discounted price" without fee ?
If there's no fee you have to compare the 10 with the 8.5
If there's a fee you have to compare the 10.3 with the 8.755.
Obviousouly in either case you'll end up with a 15% discount.

you both missed my point.
I was stating that what he said was "correct", but not accurate.
He is correct in that he gets a 12% discount off the marked price, well, 12.4% actually. However, he neglected to account for the 3% increase on the marked price, thus his statement was not accurate.
His math was correct. He just forgot a minor detail. And he actually still saves exactly 15%, interestingly enough. (15% of $10.30 is $1.545 :) )
Which I think what happened is he looked at his bill, on which he got a $10 game (or maybe $6, the math is just easier to do in my head for $10 ;) ) which he got 15% off of, and saw the charge for $8.76, and was like ".. that's only a 12% savings!"