Is a 3% currency exchange rate bad? (experienced travelers' advice needed)?

I am traveling abroad in about 2 weeks, and I signed up for a visa gift card so I could purchase things internationally with, what I had understood was "no currency exchange rate". However, the bank tellers clearly don't know anything, so when I called the gift card company, I was told there's a 3% exchange rate. I do not plan on making more than 15 purchases (that is TOPS), so I was wondering if this exchange rate is dangerous or not.

The person I talked to on the phone said my fees would add up to about $15-$16 (American dollars), which doesn't sound bad, but is there something else I should be aware of? I would not want something unexpected to happen where I rack up a bunch of extra charges.

As you can tell, I am very clueless (lol) but I'd rather be safe than sorry. I'm going to England, France and Italy so I'm dealing with pounds (England) and the Euro (France and Italy).
Additional Details
It was bought with my U.S. dollars, yes.

There's always a currency exchange rate. This is the difference between two different currencies, such as the difference between dollars and euros or dollars and pesos. There also a charge to make this exchange. Your bank is usually the cheapest place to change money. They may not even charge you if you have your account there. A credit card is also a good way to buy overseas. Credit card companies change a lot of money between currencies and usually get the best deal for the service fee. I have to admit I'm not sure about a gift card, but you don't really need to go that route. Just get some of the right currency at your bank or let someone make the exchange for you where they bank if you don't have an account.

Did you buy the gift card in $USD? In other words, is the gift card worth say $500 US dollars?

The 3% is the "fee" they charge to convert the dollars you have on the card into the local currency. it does NOT include the exchange rate of the local currency to US dollars. That's additional.

Understand that if you buy something in the EU or GB you will be buying in local currency.

Currently 1 Euro will cost you about $1.22 dollars, and 1 Pound will cost you about $1.47 dollars.

Say you see something in France that costs 10.00 EU. When you use your gift card, they will deduct about $12.50 US dollars from your balance. (exchange rate plus the 3%).

If you're in England and buy something for 10.00 Pounds, they will deduct about $15.20 from your card. (exchange rate plus the 3%).

So keep that in mind.

Have fun!

Follow up:
You probably bought a gift card expressed that has a $USD value, so let's move to the next question.

When you go to a foreign country, (most of the time) you have to pay for things you buy in that country with that country's
currency. Right now if you wanted to buy 1 Euro, you would have to pay $1.22 in US dollars. That's the currency coversion rate at this time. It can, and DOES, change daily. Tomorrow you may need to pay $1.25 for each Euro, or, it could be $1.19. It literally changes minute by minute, but credit card companies are good at keeping the exchange rate steady for one day. You always pay the exchange rate, as set by the credit card company, but the credit card company charges a 3% service fee (3% of the value of each purchase) to convert the purchase from your $US dollars on the card to the local currency.

Now, if you bought US dollars to France, you could go to a bank in France and ask them to coonvert your pocket full of $100 bills into Euros, and they will do that for you, at the conversion rate set for that day. They will probably charge you a fee as well. But at least you'll have a pocket full of Euro's to spend, and not have to worry about what the conversion rate is. Unless you go to England, with a pocket full of Euros. Well, Euro's won't work in England, so you go to a bank there, and convert your Euro's to Pounds, again, at the exchange rate, and for a service fee. (just for chuckles, right now if you took 100 in Euros to a British bank, they would give you about 85 Pounds).

Stay with the gift card, but just think of that $500 gift card as being worth about 340 British Pounds or 400 Euros.

What ever you do, DON'T convert your dollars to another currency at an airport. They have exchange rates that border on criminal.

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