How to transfer funds to Japan other than bank transfer

It’s been a while since the new millennium started, but the Japanese still seems to be living in a cash society. So, when you decided to travel to Japan for holiday, study or other purpose, you might have faced this common dilemma. You are reluctant to take a large sum of cash on you but don’t have a bank account in Japan to transfer money in. In fact, there are a few ways to transfer money to Japan other than exchanging cash at an exchange counter or bank transfer. This column will examine what is the best and safest option to transfer money to Japan.

Prepaid travel card

Credit cards are the most dominantly used payment method when traveling to foreign countries. It is getting more accepted in Japanese society but there still are many cash-only shops and stores. You can easily withdraw cash at an ATM with your credit card, but should be aware of interest charges at the same time. Normally, highly rated interest is charged on cash withdrawal with a credit card.

Instead of credit cards, take a prepaid travel card with you such as Cash Passport by Mastercard and TravelMoney by VISA. You just need to choose currencies you wish to use and top up funds via internet banking or other methods when you purchase a card, then you lock-in the exchange rate of that day. After arriving in a destination country, you can withdraw cash at a local ATM or make payments at local shops like a debit card. In Japan, you can use a travel card at ATMs of Japan Post Bank and Seven Bank. Also, you can easily manage your funds in your travel card with internet banking tools.

Prepaid travel cards can be purchased before you travel to Japan from your bank or financial institution in which you have an account, and major travel agents office. Most of them accept online application and send your card later. Inquire your bank or financial institution in your country for details.

※A prepaid travel card allows you to load multiple major currencies such as Euro, US Dollars, Great British Pounds, AU Dollar, Australian Dollars, Canadian Dollars, Japanese Yen, Singapore Dollars, Hong Kong Dollars, New Zealand Dollars.

Western Union money transfer

The Western Union Company is a financial services and communications company based in U.S.A who has over 500,000 agent locations to send and receive money worldwide. Your funds can be sent and picked up by visiting your nearest agent’s counter. Also in some countries, you can make an online application with credit card payment or use ATMs of specific financial institutions to send money overseas. Visit Western Union website of your country for more details.

Sending money

Sending your money from a Wester Union agent’s location is easy and straightforward. Follow the simple steps below.

Complete the application form and give it to the agent with your photo ID at the counter.
Give the agent the applicable fund and pay transaction fee.
Receive a transaction receipt and the tracking number (MTCN).
If a third party is receiving the fund you have sent, share the sender’s name, total amount transferred, the tracking number (MTCN) and the name of destination country with your receiver for pick up.

※You can check the status of your money transfer with the tracking number (MTCN).

Receiving money

You can pick up cash at an agent location within Japan.

Before you visit an agent location, check the status of your money transfer online or inquire the sender to make sure your money is ready for pick up.
Complete the form at an agent’s counter. Fill in the sender’s name, the total amount of money transferred, the tracking number (MTCN) and the name of country where the money was sent. Provide the complete form and your photo ID.
Pick up cash and a transaction receipt.

※The maximum amount of a single transaction of Western Union money transfer is approximately JPY1,000,000 ((or equivalent in any foreign currency).

Cash in travelers checks

Traveler’s checks used to be the most commonly used form of currency when traveling to foreign countries a few decades ago. It is still in use even these days and there certainly are some advantages to use traveler’s checks when you go overseas. Your travel money is well protected by double signatures and can be refunded when lost or stolen if applied prior. You can cash travelers check only if you find a certain place. But if you are considering to purchase travelers checks for the purpose of cashing in at a banking agent in Japan, you have to be aware of the following points.

Hard to find a place to cash traveler’s checks

By March 2014, all banks operating within Japan terminated selling traveler’s checks. Also, banks no longer cash traveler’s checks in their branches except for a limited number of exchange counters in some international airports. That is, it is extremely difficult to find a place to cash traveler’s checks in Japan. In addition, even those exchange counters who can cash traveler’s checks would accept only a few brands’ checks, mostly American-Express, Thomas Cook Mastercard, Visa Interpayment or Barclays Bank.

Hardly accepted in local shops

Throughout a long history of Japan, making payments with personal checks have never been common for Japanese citizens in the first place. Same as for ordinary personal checks, traveler’s checks are hardly accepted at local shops and stores except for some first-class hotels or shops in international airports. There are no longer bank branches to cash traveler’s checks in Japanese cities, so taking travelers checks has become one of the least flexible way to prepare your travel funds.

Costly

A few decades ago, traveler’s checks were preferred for the better exchange rate. They are as liquid as cash but the same exchange rate as telegraphic transfer is applied. That means cashing in travelers checks were a lot cheaper than just exchanging money even after paying transaction fees. However, they are no longer a good deal as credit cards and international bank cards offers better exchange rates these days.

Cash, check or card, choose the best one for you

While traveling or studying in a foreign country, it is not uncommon to face an unexpected expense. Unlike when in your own country, you may not expect many helping hands in such cases. So it is important to make sure you have good access to your fund. When you have no bank account in Japan, a prepaid travel card is the handiest form of money. If you are not able to purchase a travel card in your country for any reason, Western Union money transfer is the right option for you. Traveler’s checks are one of the least flexible form of currency in Japan but you are still able to cash them. Just make sure to check the conditions to cash travelers checks in Japan before purchasing.