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How to avoid credit card fee gouging in foreign countries?

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I'm leaving (the US) for the Dominican Republic tomorrow and I only just discovered that credit cards charge a 3% fee on every transaction. I haven't been out of the country lately, but this isn't how I remember traveling in the past, when I was told to use credit cards everywhere, because you get a decent exchange rate and no fees. Still that seems to be how it is.

ATM withdrawals seem every worse, paying the fee plus a withdrawal fee.

So now I've got a big problem. I don't want to pay that fee everywhere I go, but I also don't want to walk around with a lot of cash.

What's the best way to handle this?


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