How do most folks take money into Japan? Do you take cash and exchange at the airport or other exchanges? Do you rely on ATMs? Do you take travelers checks?

I realize this topic has been covered extensively, but I've gotten a bit confused as different sources say different things at different times.

In general, my research seems to indicate travelers checks can be taken but must be exchanged at a bank or currency exchange, cash can be exchanged and that airport rates are about average, ATMS are often available, that exchanging dollars in Japan is generally better than doing so in the US, and that exchanging dollars in the US is a fast way to a bad exchange rate.

dcman2

First time I was in Japan I got 20000 JPY at bad rate beforehand. After that I've only had whatever leftover change there is from previous trip (sometimes zero) and relied on ATMs. However, I always travel with some emergency cash in euros in case there is some problem with international ATM networks but I've never have had to resort to that.

The minor inconvenience is that majority of Japanese ATMs don't accept foreign cards. But it does not matter too much if you plan ahead a little. And I'm pretty sure there is a suitable ATM in every international airport in Japan.

ATM is the most convenient method, but many banks have myriad of fees. Find out what they are or you will get blindsided. My account is with a bank that charges no foreign ATM fee and the minimal interbank+1% exchange rate so ATM is my preferred choice.

My second choice is traveler checks. The exchange counters at NRT give TC slightly better rate than cash.

Like you have already found out, exchanging foreign currency in US is a very bad idea. It is different in countries like Hong Kong or Singapore, where they do a lot of trading in many currencies, the banks can offer the most competitive rates. I purchased yen beforehand when visited Japan from HKG. But it is not something I would do in the US.

Outside the airport look for a 7-11, e.g. Seven Bank. Have had no problem w/ US-based ATM cards.

1. no-fee traveller's cheques, cashed at Japanese airports (5 minutes) or banks/post offices (20 minutes)

2. ATM

When I first went to Japan 35 years ago, cashing traveler's checks or cash at a bank was the ONLY way to go, and it was a bureaucratic process. First, you had to wait till at least 10AM for the latest quotations to come in. Then you filled out a form in a special office and handed it to the employee with your foreign cash or traveler's checks.

Then you waited for about 20 minutes while the form and the traveler's checks were passed around to a series of desks to be added to each person's pile of papers to be stamped.

Finally, the first employer gave you another piece of paper and told you to go down to the main teller area to wait some more until a teller with a voice like Minnie Mouse called your name and handed you a tray of cash.

It was that way for years.

Advances on credit cards became possible in the early 1990s, and Citibank ATMs appeared in scattered locations.

Finally, when Japan shared the World Cup with South Korea in 2002, the post office ATMs began accepting foreign cards. Once that happened, I never used traveler's checks again.

My last trip was after a gap of five years, and I was delighted to find that I could use the 7/11 ATMs.

Use of credit cards is much more widespread, too.

I'm a little confused. Why is exchanging money in the US a bad thing? My bank gives me the current rate, they use XE.com and only charge $7.50 for the transaction. Is the rate better at the airport in Japan?

If true, that that would be a deal. I find it hard to believe, however. Please provide the name of your bank and a link to the information that supports what you say - I'm sure many would be interested.

In most cases, you'll find that the exchange rate used by banks or other institutions in the US is very different from the actual rate that day. For example, the Travelex booths in many US airports use an exchange rate that's about 14% different from the actual exchange rate, even though they say "No Commission". Whatever they want to call it, they're making 14% on each exchange. Banks do this too. Be careful to know what you're really getting. Get an actual quote for an actual date, and compare with the actual rate - don't believe anything they tell you about "no commissions!"

The rates charged at the airport exchange booths in Japan are consistent over time: 0.5% for Travelers Cheques, and 2.5% for Cash. Compare this with 14% found at many US airports.

If you go the T/C route, be sure to get them denominated in US Dollars. Some banks and others can offer you the option to get T/C's that are yen-denominated, which can then be exchanged at par in Japan. The thing is, they will build a handsome profit into the exchange rate at which they sell you the yen T/Cs that are paid for with USD: often at 6% or more.

In terms of cost and convenience.

1. No foreign fee credit card. (Use anywhere, no fees)
2. ATM (Widely available, no fx but a service charge)
3. Travelers Cheques (1 yen per $ fx plus any upfront fees, fewer places to cash)
4. Most other credit cards (3% fee for using overseas)
5. Cash (3 yen per $ on the fx, need to exchange a bank, hotel, etc).

Do we know the status of mastercard at 7-11 machines? Frustrating since my HSBC and C1 cards are both mastercards and they don't offer visa options.
Cheers
Howie

AFAIK they still don't work at 7-11 but you can use them at post office, Citi or Shinsei ATMs.

The bank I was going to use is TD Bank. I've talked to people at two different banks and they said the same thing. I will check into it and see what I come up with. I have another bank I can use, but they charge $15 for the transaction. I will check with both to see about any hidden commissions.

Thanks

Our bank (very nice people) promised us the current exchange rate, but couldn't tell us what that was. It looked like they were subbing the conversion through Wells Fargo. In short, at least here, I couldn't trust their rate because as a smaller bank they didn't do a lot of these exchanges and I couldn't confirm the information they had been told was actually correct.

EDIT: double post. oops.

Chase's CC lineup at the $95 level seems to be the new king of FX fee free cards. If you're an AMEX Plat member, that works too. Several banks that have premier banking account levels such as Citi also have fee free withdrawals.

You should not have to worry about swiping your card at lodging places or major electronics/department stores (like Yodobashi/Bic Camera/Hankyu/Seibu/etc). Even convenience stores are now allowing you to use CCs.

The only type of place I have yet to be able to use my CC and this is a big one, is the train station, when you need to recharge Suica cards. You still have to use cash for that one (unless they changed it in the last 6 months ).