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【Selected】Recommended Banks and International Money Transfer Services for Sending Money from Overseas to Japan
2024-05-19
- This article is for reference only as it is merely a translated version of the Japanese article below.
【厳選】海外から日本へ送金おすすめ銀行・海外送金事業者を紹介 (Japanese version)
International money transfers often present challenges, including fees and transfer times.
It’s not uncommon to be surprised by high fees or find that the process takes longer than expected.
This article introduces recommended international money transfer services that facilitate transfers from overseas to Japan, potentially saving nearly 12,000 JPY in fees.
Find the international money transfer service that best fits your needs.
The information is current as of August 2023.
Conclusion
- Local banks typically charge high fees for transfers.
- Recommended international money transfer services include Wise, Xe, and Revolut.
- Transferring 100,000 JPY can save approximately 12,000 JPY.
- The transfer limit for Wise and Revolut is 1 million JPY.
- Xe‘s transfer limit exceeds 1 million JPY.
- For transfers between accounts, Revolut is recommended as it offers free currency exchange fees on weekdays, with a free account limit up to 750,000 JPY.
- Non-bank money transfer services can complete transfers in as little as 5 minutes.
Before Sending Money from Overseas to Japan
The entities that can facilitate transfers to Japan are “banks” or “non-banks (including FinTech companies).”
There are two types of international money transfer providers
- Banks (e.g., Bank of America)
- Non-banks (e.g., Wise, Revolut, Xe).
Typically, one of these types will be used to transfer money to Japan.
For those interested in understanding the differences between them, please refer to the article below.
About International Money Transfer Services
Types of Fees Associated with International Money Transfers
There are five types of fees associated with sending money from overseas to Japan.
A brief explanation of these fees is provided below, but more detailed information is available in another article.
Fees for International Money Transfers
Deposit Fee
The cost incurred for depositing into the sender’s account is known as the deposit fee.
Typically, this fee is charged per deposit or based on the deposit amount, though many banks offer free deposits at the counter.
Transfer Fee
The transfer fee is the cost incurred by the money transfer service during the transaction.
This fee is generally set as a fixed amount or percentage of the transfer amount.
Exchange Rate and Currency Conversion Fee
When converting foreign currency into JPY, an “exchange rate and currency conversion fee” is incurred.
This fee is based on the money transfer service’s own exchange rate, taking into account currency fluctuation risks, and is calculated as a percentage difference from the Google search result rate.
Often referred to as a “hidden cost,” this fee is generally less than 1% and considered reasonable.
Intermediary Bank Fee
Using a local bank involves the SWIFT international banking network, which includes an “intermediary bank fee.”
This fee is typically charged per transaction.
However, when using a non-bank money transfer service, intermediary bank fees are generally not charged.
Receiving Fee
A “receiving fee” is charged to the recipient’s account upon deposit.
In Japan, this fee ranges from approximately 1,500 to 2,500 JPY per transaction and is usually paid by the recipient.
Transfer Limits Differ by Provider
Payment service providers have a maximum limit of 1 million yen per transaction
The transfer limit for entities like Wise or Revolut is typically up to 1 million JPY per transaction.
Non-Japanese entities like Xe are not subject to the 1 million JPY limit.
When using local banks, it is essential to verify in advance
Local banks set individual transfer limits, so it’s crucial to check these limits before proceeding with a transfer.
Transfer Times Can Be as Short as 5 Minutes
Non-bank international money transfer providers can complete transfers in as little as 5 minutes.
However, using a local bank can take over a week as it involves intermediary banks.
Recommended International Money Transfer Providers for Sending Money from Overseas to Japan
Comparison of Service Offerings from Wise, Xe, Revolut, and Bank of America.
International Money Transfers from Overseas to Japan: Comparison of International Money Transfer Providers
| Wise | Xe | Revolut | Bank of America | |
| Transfer Fee | 0.41% to less than 1% | Approximately 1.5% to | Less than 1% | Approximately 5 to 7% + more than $45 |
| Receiving Methods | Bank Account | Bank Account | Bank Account | Bank Account |
| Limit Amount | Equivalent of 1 million JPY | 350,000 pounds 535,000 US/Canadian dollars 750,000 New Zealand dollars | Equivalent of 1 million JPY | $1,000 (individual) |
| Number of Countries Eligible for Membership Registration | EU countries USA United Kingdom Japan etc., over 170 countries | EU countries USA United Kingdom etc., 36 countries | EU countries USA United Kingdom Japan etc., over 38 countries | USA only |
| Time Required to Open an Account | Approximately 3 business days | Approximately 5 minutes to | Several minutes to | 1 to 2 business days |
| Time Until Receipt of Funds | 1 hour to 5 business days | 1 to 4 business days | Same day to 5 business days | 1 to 2 business days |
| Currencies Handled | More than 27 types | About 100 types | More than 23 types | More than 140 types |
| Japanese Language Support on Website | ○ | ○ | ○ | × |
| Inquiry Methods | Telephone Chat | Telephone Inquiry Form Chat | Chat | Telephone |
| Security | ◎ | ◎ | ◎ | ◎ |
The most notable difference when comparing these three companies with Bank of America is in the “transfer fees.”
Companies like Wise offer low-cost transfers, while Bank of America’s fees are relatively high, approximately 5% to 7% plus over $45.
Those looking to minimize transfer costs should consider using Wise or similar providers.
The features of the recommended three providers are also introduced.
Wise (formerly TransferWise)
Wise’s transfer fees range from 0.41% to less than 1%, among the lowest in the industry.
It supports membership in over 170 countries and deals with more than 27 types of currencies, allowing deposits into recipient accounts within 3 business days, including account setup and receipt.
Customer support is available in Japanese, making it user-friendly for those who do not understand foreign languages.
\ Enjoy the benefits and ease of use! /
Wise’s International Money Transfer Services
Xe
Xe is attractive for its handling of approximately 100 types of currencies and high transfer limits.
It is suitable for transactions in minor currencies and large transfers exceeding the equivalent of 1 million JPY.
Regulated by central banks and financial authorities worldwide, its safety is assured.
\ Approx. 100 Currencies Handled + Transfers Over 1 Million Yen OK! /
Revolut
Revolut offers the advantage of same-day transfers and transfer costs of less than 1%.
The entire transfer process can be completed via the app, making it suitable for those who want to conduct international transfers easily.
It is recommended for those who need to transfer money urgently or frequently make small transfers.
\ Special Offer: 980 yen per month, now free for three months! /
Revolut’s International Money Transfer Services
Receiving Banks and Money Transfer Services in Japan
For receiving money transfers from overseas, one can utilize Japanese banks or money transfer services. The features of each bank and service will be explained.
Japanese Banks
Major Japanese banks can receive international transfers.
The fee for receiving each transfer typically ranges from about 1,500 to 2,500 JPY.
Generally, the recipient bears the receiving fees.
Frequently Used Receiving Banks
- Rakuten Bank
- Japan Post Bank
- Mitsubishi UFJ Bank
- Sumitomo Mitsui Banking Corporation
- Mizuho Bank
Wise
Wise allows the creation of accounts in Japan, and transfers between accounts in the same currency are free and instantaneous.
The currency conversion fee from foreign currencies to Japanese yen is about 0.5%, which is lower than banks and airports.
Additionally, withdrawals up to 30,000 JPY per calendar month are free.
ATMs Where Withdrawals Are Possible
- Aeon Bank ATM
- E-net ATM
- Daily Yamazaki ATM
If the recipient’s monthly withdrawal amount is low, transfers between Wise accounts can be executed at low cost and instantly.
Revolut
Like Wise, Revolut allows the creation of accounts in Japan, and transfers between accounts in the same currency are free and immediate.
A difference from Wise is in the exchange fees.
Even with a free plan, Revolut offers free currency conversion fees up to a monthly equivalent of 750,000 JPY (only for transactions on weekdays).
Withdrawals up to 25,000 JPY per month are free, so if staying within the limits of exchange fees and withdrawal amounts, recipients can receive cash at zero cost.
Detailed Revolut Plans
Money Transfer Simulation from the USA to Japan
Comparison of transfer costs between a payment service provider (Wise) and a local bank (Bank of America).
Simulation Conditions for Transfers
- From the USA (USD) to Japan (JPY)
- Receiver is a Japanese bank
- Bank of America’s exchange rate as of August 24, 2023: 144.99 JPY/USD, calculated with a currency exchange fee of 6%
- Intermediary bank fees and recipient fees are not considered
For a transfer of 100,000 JPY
USD required for transferring 100,000 JPY
- 1. Revolut: 692.95 USD
- 2. Wise: 696.21 USD
- 3. Xe: 703.04 US
- 4. Bank of America: approximately 776 USD
Revolut offers the lowest cost for transferring 100,000 JPY from the USA to Japan.
The difference between Revolut and Bank of America is approximately 83.05 USD, which equates to about 12,041.42 JPY when converted using the exchange rate of 144.99 JPY/USD as of August 24, 2023.
It is evident that using Revolut can save about 12,000 JPY even for the same receiving amount.
For a transfer of 1,000,000 JPY
USD required for transferring 1,000,000 JPY
- 1. Revolut: 6,893.11 USD
- 2. Wise: 6,937.50 USD
- 3. Xe: 6,976.78 USD
- 4. Bank of America: not capable of transferring
Revolut also offers the lowest cost for transferring 1,000,000 JPY from the USA to Japan.
The difference between Revolut and Xe is approximately 83.67 USD, which equates to about 12,131.31 JPY when converted using the rate of 144.99 JPY/USD as of August 24, 2023.
The difference in transfer costs between the recommended providers becomes more pronounced with larger transfers.
\ Special Offer: 980 JPY per month, now free for three months! /
Reference: Wise | International Money Transfers from the USA to Japan
Reference: Revolut｜Transfer without borders
Reference: Xe｜Xe Currency & Money Transfers
Reference: Bank of America Online Banking Service Agreement
Recommended International Money Transfer Providers by Type
For Those Seeking Cost Transparency: Wise
Wise does not have “hidden costs.”
Wise is recommended for those who value transparency in fees.
For Minor Currencies and Transfers Exceeding 1 Million JPY: Xe
Xe supports over 100 types of currencies, making it suitable for transferring minor currencies.
It also has a high transfer limit, making it recommended for those who want to make large transfers exceeding 1 million JPY.
For Transfers Between Accounts: Revolut
Transfers between Revolut accounts incur no transfer fees.
If the transaction stays within the limits of exchange fees and withdrawal amounts, the recipient can receive cash at zero cost.
Use Revolut if the recipient has a Revolut account.
Methods of Sending Money from Overseas to Japan
Preparation Including Recipient Information
International money transfers require the recipient’s information, including the name of the bank, branch, and account number.
Transfer Process
Follow the procedures specified by each international money transfer service.
Deposit into Recipient’s Account
Once the process is complete, the funds are deposited into the recipient’s account.
It typically takes several days for the deposit to be processed.
For more details on the transfer methods, please refer to the article below.
Transfer Methods and Required Documents
Key Points to Note for International Money Transfers
Account Setup Time May Take Several Days
International money transfer services conduct identity verification to ensure security.
Since verification can take several days, it’s advisable to set up your account early.
Mistakes in Transfer Information
Incorrect entry of transfer details can cause refunds or delays.
Ensure to double-check all entered information carefully.
Phishing Scams
Phishing scams are one of the fraudulent methods on the internet.
Be cautious not to open suspicious emails and strive to protect personal information.
Summary of the Article
This article has provided an overview of recommended international money transfer services for sending money from overseas to Japan.
- Local banks typically have relatively high transfer fees.
- Recommended international money transfer services include Wise, Xe, and Revolut.
- It is possible to save approximately 12,000 JPY on a transfer of 100,000 JPY.
- The transfer limits for Wise and Revolut are 1 million JPY.
- The transfer limit for Xe exceeds 1 million JPY.
- For transfers between accounts, Revolut, which offers free currency exchange fees on weekdays, is recommended; free accounts have a maximum limit of 750,000 JPY.
- Non-bank money transfer services can complete transfers in as little as 5 minutes.
\ Special Offer: JPY 980 per month, now free for three months! /
