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The transaction fee is charged by (some) US credit cards for international purchases. The rate is from 1-3% with cards from Capitol One and some others having no charge at all. This has been discussed elsewhere on the boards. Kobo is currently going through the process needed to be able to seen as a US purchase so this will come to an end. It should happen soon. That being said, the ability to use Borders gift cards is terrific!
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