The 1% commission is about an industry standard, after all, they're issuing these, it costs them to issue, so they'll want to be able to recover their costs naturally.
Might be worth looking at this
http://www.moneysavingexpert.com/travel/cheap-travel-moneySomething also to remember when using TC's - be careful where you exchange them. In Icmeler, there are a few bureau de change's - and they have their rates outside. It was a standing joke whilst we were there, the frankly laughable rates you got from them. Can't understand anyone who had any idea using these, the rates were so bad.
I've always used a Nationwide bank account to preload in the UK, and withdraw once there. Of course, there is the small chance you might lose your card!