More dynamic currency conversion coming to Japan?
 

http://www.itochu.co.jp/en/news/2014/1406041.html

I didn't know that DCC was in use in Japan but it has apparently been around since 2009, and there is now a deal in place between Travelex, UC and Itochu to expand its reach in preparation for the Olympics.

Be careful when using a foreign CC in Japan, particularly at tourist-oriented places, as you might get hosed on the exchange rate...

Travelex Group ... Why does this brand fill me with disdain?

I couldn't believe the spread they were taking in AMS !

Their success seems to be predicated on being a local monopoly.

I often wondered about this service, I have been asked if I would like to use it while shopping in the US. I have always declined.....and I will continue to do so ! ^

I never use DCC as I believe it is a ripoff for the consumer, but I've never tried to compare the rates given for DCC versus that provided by my credit card company. I suppose for people with cards that charge a flat forex fee it might be worth it.

I've noticed, sadly because my visa has visa international charging 3% on fx, that the rate can be close. It just depends who you want to give your fx spread to since neither is close to spot.

The only real advantage to DCC from the card user's perspective is that you get a receipt denominated in your home currency, which can make things easier when expensing business travel and related items purchased on a personal card.

On mkjr's point, my understanding is that the cards that charge foreign transaction fees will charge the fees on all overseas purchases regardless of the currency you pick. Visa does take a network-wide exchange rate spread but I believe it is only 1% or so.

There's normally something like a 2,5-5% exchange difference.... And that's not all, the charge will most likely still generate a foreign rate charge for cards that carry them. It's always a bad deal for the card owner.

1) they give the merchant a cashback 2) im sure some people would use the service for simplicity not realizing/caring the extra cost.

Fixed that for you.

Spent a lot of money in Hokkaido in May on MC and Visa cards - no DCC noted (but our chip and sign cards ran into problems).

Even so I don't think Japan merchants will deliberately seek to hose customers. There may be lost in translation however.

I use World First to purchase Yen (you can subscribe to daily market rate alerts) and a Chase Sapphire card with no foreign transaction fees.

How often to use credit card
 

I have a trip to Korea and Japan coming up in September. Typically, I charge everything and always decline offers to convert to USD. However, I'm curious, other than large establishments, how prevalent are credit cards and their daily use in Japan? I'm used to charging a $3 drink at a coffee house whenever in Europe, Australia, Canada, etc. Is it better to just hit up local Japanese ATM's and use cash (hate to lose out on points, but...). If it matters, I'll be training my way up from Fukuoka area to Tokyo (only two nights in Tokyo).

Thanks in advance for any insight.

^

I'd also like to know the best avenue for exchanging currency in bills. As mentioned, I use World First for purchasing JPY for wire transfers but I would like to travel with some cash as well and preferably without getting fleeced on the exchange. Is there an outlet in San Francisco that will offer reasonable or near market rates for USD-JPY currency exchange so that I can have some cash to carry in pocket on arrival?