Get a credit card that does not incur int'l. charges and a credit card trumps the TCs every time here. Are most American issued cards subject to such a fee. Never seen it myself.
Absolutely untrue. Every MasterCard/Visa (at least those issued in the US) charges at least 1% in forex fees, as that's what's tacked on by the MasterCard/Visa network itself. In addition, the issuing bank adds 0-2%, bringing the total to 1-3%. Amex charges 2.7%
TCs exchanged at the NRT bank exchange booths charge 0.5% forex commission and no transaction fee. Cash exchanged at those booths get charged 2.5%.
I agree that other than the exchange booth at the airport, TCs don't make sense, especially for Japan. If you exchange them at the hotel or use them to pay your hotel bill, you're likely to pay 6%.