Getting JPY
 

So, what's the consensus on getting the best rate in Japan? Some posts from about four years ago suggest ranking like this -

1) travelers checks
2) cash
3) ATM

Is this still the case?

That's more like 40 years ago rather than 4 years ago! Does anyone actually use traveller's checks anymore?

Of course, like most everywhere, the best and standard way is to get cash from ATM machines. There are threads here about how to do this in Japan, do a search. Note that only a minority of ATM machines in Japan accept foreign cards, but it's enough so that you won't need anything else.

ATM's might be the easiest way, but I still think that travelers cheques are the cheapest in most cases.

You can exchange TC's at the airport for a 0.5% commission rate, whereas they charge 2.5% for cash. So, if you are able to get USD TC's for no commission or fee before you leave, your total conversion cost will be 0.5%.

Although it's possible to beat this with the right ATM card, the vast majority of US-issued ATM cards will charge at least 1% in foreign currency charges, plus in many cases a network ATM fee.

Note that this advice is for Japan only: in most countries, TC's are more expensive to redeem than cash or most ATM fees.

Use a credit card. TC's are outdated and a nuisance. They are really only good for mailing money to other places. For cash needs, get some when you get here at a bank, the airport, a Forex Counter. Unless you are exchanging massive quantities, it will all be very much the same. For bigger purchases and to take advantage f the TTM rate without commission use a card.

ATM with a no-fee debit card.

I guess I'm the voice of dissent again.

Use your credit card for large purchases, like hotels and such, even though you will get raped by the international transaction charges. But get and use cash for day-today expenses. You just don't want to whip out your handy-dandy, uber-platinum credit card to buy a bowl of ramen at the little place in the alley or to pay the 500 yen entrance fee at the tourist site of your choice, or to pay for that 1000 yen taxi ride. Get cash, use cash.

As for travelers checks, they are still one of the cheapest options for exchanging cash at the airport. If you can get no-fee t/cs, you will actually get a pretty good exchange rate from the airport bank outlets (not the FOREX booth.) Just don't fool around with trying to use t/cs during your travels around. Exchange them for yen at the airport and be done with it.

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.

I agreed. Credit card/ATM is the way to go. TCs are so outdated and the exchange rate isn't in your favor.

Yes, most large US banks - Bank of America, Citi, Chase, etc charge a 2-3% fees on ATM and Credit card transactions. But no one says you need to use a card issues by them.

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%.

I'm sure TC's have their advantages in some respects but when the wife and I travel, we do a budget and then get all the foreign cash we expect use from a local forex place in Vancouver. Depends on where we're going of course but we're generally willing to accept a degree of risk supplemented with common sense safety precautions (money belt, not taking out wads in public, etc). [And of course, I understand that this isn't practical depending on the situation.]

For our 2.5 week trip to Japan, we basically made all our purchases using ~350000 Yen that we obtained in Vancouver. We slightly overspent on souvenirs (surprise, surprise :) ) and had to make one ATM withdraw. Obviously, we had our CC's as a backup and could have used them for larger purchases (ie hotels, train tix, etc) to extend our Yen reserves but as others mentioned, we tried to avoid because the forex fees associated with them. [I'm going to research getting a CC that doesn't have such killer forex fees.]

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Similarly, when my buddy whipped up a AMEX TC's during a group trip to Hawaii a few years ago, a bunch of us cracked up laughing.

But the 0.5% commission is against what rate? The spread on the rates in the exchange booths is generally pretty wide. That means you are not likely getting the best deal there. No guarantee that the ForEx rate on your CC will be any better but if you can get a 0% or 1% card (CapOne, Schwab, etc.) AND get the exchange rate they use you'll probably do better than the 0.5% "rate" at the counter.

Actually what I say above is absolutely true. You cannot frame everything based on your experience unless you have experienced everything. I do not pay fees but rather the TTM rate. i.e. I get the best available rate that day if it is better than the day I left for travel. If the day I make a purchase the TTM rate is higher, I use the cash I bought at the better rate. Come with sufficient funds to play the spread if you wish, but in Credit Cards will generally give you access to better rates.

Just went over my CC statements again to confirm before hitting send and it turns out I am right.

TCs are really not your best friend in Japan. Get some cash, bring your cards and see what the rates look like daily of you feel your holiday expenditures are going to make the difference add up to much more than a meal at McDonalds. I prefer to enjoy the holiday and know that gaining or losing up top $20 in fees is not worth feeling one way or the other about my holiday YMMV.

Sorry Mike but that is just silly. Nobody on a short visit should be checking exchange rates daily to get SOME of the money they need. I just get it all when I first arrive and forget about it from then on. That was my point. The casual visitor should just figure out the best deal and get all the money he will need ONCE. At the airport bank outlets, travelers checks are usually exchanged at a better rate than dollars. Back in the 125y/$1.00 days for cash (a distant memory, I know), I got 132y/$ using t/c. I just exchanged them all upon arrival and did not have to fool around hunting for banks or ATMs for the rest of the trip. I don't do that anymore. Nowadays, I just get my yen from BofA (no transaction fees) before I leave home. I know their exchange rate is not as good as some other sources but the $5.00-$10.00 or so I spend over ATM rates is worth less than my time trying to "maximize" my exchange rate.

For residents like you it makes perfect sense to find and use the best c/c daily. For the casual visitor - not so much. I have more credit cards than I need. Some have very low rates or no annual fees and one earns a potload of miles on purchases. I am simply not going to look around for yet another credit card to use only during my 1 or 2 foreign trips each year just because they don't charge a foreign transaction fee.

Having dealt with dozens of personal F/X transactions for JPY/USD as a way of getting money from Japan to the US, I can categorically state that the TC F/X rate is the best all-in rate (including fees and spreads) of all the other alternatives, including ATMs, credit cards, and even wire transfers.

Frankly, I don't know if this applies the other way (for bringing money into Japan), but if it works the same way, the idea would be to buy JPY T/Cs abroad and then exchange them all for cash upon arrival, and use that cash as spending money for day to day items.

For large sums of money there is little doubt about it. Safer, easier to hide from prying official bodies etc.

I would honestly be curious as to whether it works well for JPY into Japan. I rather suspect the fees charged in the US may outweigh some alternatives. Good point though on getting investment level amounts back to the US. I heartily concur.