Colwyn you are being far too generous in your explanation of what the bankers have done.
You are right in your 'Before' explanation, however, in the real 'After' situation they are charging a marginally more attractive FX rate, but not that attractive compared, say, to what a bank or change would give you here for cash. Then they are putting the Non Sterling Charges on top, and some of these are as high as 2.75% of the sterling amount transacted. Which is why I was charged by the MBNA credit card £29 for paying an approx £1100 foreign hotel bill, and as I say the FX rate was not that attractive either.
If the credit card was not bad enough, then the bank (HSBC) decided that they would charge a Non Sterling Fee for making a TL withdrawal at their Turkish ATM, which they have never done before. We can get around this by withdrawing sterling from the ATM and changing it to TL at the bank or change, but not everyone can. And that is the point I was trying to make, all of the UK banks and card providers are doing it. People need to check what their own bank/card providers are doing, otherwise they could be in for a financial shock after they return from holiday in Turkey, or any other country, and see their bank CC statements.
In short the bankers are charging you more for doing what you used to do either for free or at less of an overall charge.
Mac couldn't agree more on the Turkish CC for people living in Turkey. Unfortunately, many people do not live here and they may not be able to get one, or the limited holiday opportunity does not make it worthwhile having one.