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After getting your plane ticket to Japan, the next thing to do is foreign exchange to get Japanese Yen. In cases where you need to have a large amount of JPY with you in Japan for tuition or expenses incurred over a long-term stay, the best method is probably overseas remittance. We have moved from a period where there were no options other than bank remittance to period where there is a plethora of online remittance services. Let’s take a look at the 3 best ways to convert foreign currency to Japanese Yen and its remittance.
Methods for taking money into Japan
There are many ways to use money whilst in Japan
bring foreign currency (exchange it in Japan)
bring JPY (after exchanging it in your home country)
a credit card that can be used in Japan
a traveller’s cheque
a travel money card (a private card that can be used internationally)
bank remittance
online overseas remittance services
The legal limit for the maximum amount of cash you can bring into Japan from overseas is 1 million JPY. However, foreign exchange for any amount less than that is expensive, so it is not recommended for those planning a medium-long term stay. The wise thing to do is to exchange the smallest possible amount of JPY in cash prior to departure or immediately after departure.
Alternatively, you can try a traveller’s cheque, but not many places accept them in Japan, so it’s not exactly a convenient option.
You can also opt for a travel money card which you charge the amount that you need in your own currency and use at your destination country. Travelex’s cash passport is a well-known example, but the exchange rate and processing fees are not friendly either.
If you require overseas remittance for a sum of money, you should familiarise yourself with online overseas remittance services. These are convenient services which can do both foreign exchange and remittance at the same time. For example, you can send money as dollars” and receive it as “yen”. There are various such services around the world, so let’s determine the one to use by comparing the following 4 vital points:
– exchange rate
– processing fee
– time taken to remit
– ease of use
Other than these 4 aspects, it is vital that you also consider services that can send money in your own currency and be received in Japanese yen. Having said that, major overseas remittance services are able to take in a range of currency and the process can be conducted securely over the internet.
Transferwise – a service provider rising in popularity for being cheap and fast
Transferwise takes over 40 different currencies and also enables remittance to Japan. For example, if you wanted to send 100,000 JPY worth of American dollars from America, all you have to do is register on Transferwise. They will find another Transferwise user who wants to send 100,000 JPY to America and you will be matched together. Your money is then exchanged. Put simply, once you deposit money from your American bank account into you American Transferwise account, money that another (Japanese) user has deposited into their Japanese Transferwise account will go into your Japanese bank account.
Rather than a method where “money doesn’t move between countries,” Transferwise is succeeding based on the fact that they charge a 0.5~1% handling fee of the overseas remittance amount. They don’t charge a fee for the exchange rate, and it is possible to conduct your overseas remittance under international exchange rates.
Please note that Transferwise’s borderless account service does not currently service JPY.
＜ABOUT＞
– Exchange rate: the same as the international exchange rate (there is no processing fee)
– processing fee: 0.5~1%
– time taken to remit: 1-2 working days after your deposit has been confirmed
– ease of use: registration, identity confirmation and remittance can all be completed online. Time taken to complete all procedures is also short. There is no minimum limit on the amount to be remitted and the maximum limit is around 1.5 million USD (varies by country)
Transferwise’s official website
OFX – no handling fees for remittance amounts above $10,000 AUD
The overseas remittance service offered by Australia’s non-banking financial institution OFX takes 55 different types of currency. OFX’s specialty is that processing fees are exempted for remittance amounts above $10,000 AUD. This is a service that you shouldn’t overlook if you’re hoping to send a large sum of money. The smallest amount that can be remitted has been set at $250 AUD, but there is no maximum limit.
OFX’s exchange rate is also set at the international exchange rate and they do not charge a processing fee. They are a company that is listed on Australia’s stock market (ASX) so they are a trusted company with many users.
＜ABOUT＞
– Exchange rate: the same as the international exchange rate (there is no processing fee)
– processing fee: $15 AUD (exempted for remittance amounts above $10,000 AUD)
– time taken to remit: 1-2 working days after your deposit has been confirmed
– ease of use: registration, identity confirmation and remittance can all be completed online. However, a phone confirmation is required at the time of remittance. The procedures are simple. The minimum limit on the amount to be remitted is $250 (AUD)
XE Money Transfer – a 5-star service that accepts around 60 currencies
XE can be used in 170 countries around the world and can process overseas remittance in around 60 different types of currencies. As a service that has attained a 5-star rating on the site Trustpilot, it is clear that they have won the trust of many consumers.
There is no minimum limit on the amount to be remitted, and furthermore, from March 2019, processing fees will be exempted for overseas remittance. It is uncertain how long this promotional period will last for, but since they also use the international exchange rates (without charging an additional fee), it is worth registering. The only downside is that you cannot make a deposit via credit card.
＜ABOUT＞
– Exchange rate: the same as the international exchange rate (there is no processing fee)
– processing fee: free from March 2019
– time taken to remit: 1-3 working days after your deposit has been confirmed
– ease of use: registration, identity confirmation and remittance can all be completed online. The procedures are simple. The maximum limit on the amount to be remitted is $500,000 USD.
XE Money Transfer’s official site
All 3 of the above overseas remittance services can be used between the bank accounts in your home country and Japan. In the case where you haven’t got a bank account at your destination country, it is possible to just create an account for remittance prior to departure.
Can you use your credit card in Japan?
If you have a credit card from your home country, you may be able to withdraw cash as JPY at selected ATMS in Japan. Exchange rates and processing fees will depend on your credit card company, but if you are here on a short-term stay or you can’t afford to wait for the processing time for overseas remittance, it will come in handy.
We advise that you check with your credit card company prior to departure even for credit cards that can be used overseas. This is because many companies have recently been locking overseas use of credit cards to avoid fraudulent usage. There have been cases where people haven’t been able to unlock their card because they didn’t notify your credit card provider about potential overseas usage ahead of time. Not only were they unable to take out cash from ATMs, they couldn’t use it as a payment method whilst shopping. Additionally, please check the overseas withdrawal limits in advance.
Once you have decided on your stay in Japan, make sure you register an account on overseas remittance services and inquire about overseas usage of your credit card.
This article has been composed from information that is valid as of March 2019. Please check the details with each corresponding company at their official website.