using fiat is free, at least in my country with our banking system it is. if i want to tranfer money from one bank to another i can do it for free with no fee. if i want to do it from my card it will cost me a fixed fee of about $0.1
with that said, if i want to treat bitcoin as a currency i wouldn't want to pay anything more than 0.01-0.1 dollar for transactions.
Yes that's what i thought - the "typical" rate should be between $0.01 - $0.1 while the $1 should be really as a very maximum.