Money Transfers From Japan to the U.S.: Basic Knowledge and Companies Offering the Service

Do you have plans to stay in the U.S. for a long period to study or on a business trip? In that case, you may need to find an international money transfer service to send money over from Japan. There are several options available on the market, with varying transfer times and costs depending on the method you choose.

This article will share some basic must-know information, focusing on the various types of money transfer services and the fees charged when sending money from Japan to the U.S.

Types of Fees Charged When Sending Money to the U.S.

Multiple types of fees can be charged when sending money to the United States. In this section, we will look at them one by one in detail.

1. Transfer Fee

A transfer fee is charged by the Japanese bank (remitting bank) when sending money to the United States from Japan. The amount varies depending on the bank and service, as well as the country you are sending money to, so it is recommended to confirm this in advance.

2. Receiving Fee

A receiving fee is charged by the U.S. bank (receiving bank) that receives the money sent to the U.S. The amount varies from bank to bank, which is a good thing to check out in advance. Do note that the receiving fee is only charged with money transfers through a bank.

3. Intermediary Bank Fees

When you send money from Japan to the U.S., the bank that acts as an intermediary between the Japanese and U.S. banks will charge a correspondent bank fee. The intermediary bank is called a correspondent bank, which is essential when the source country and destination country do not have a "correspondent agreement", making it impossible to send money directly. Fortunately, Japan and the U.S. have a correspondent agreement in place, so it is possible to relay money to the U.S.

Different banks may link up with multiple intermediary banks. If this is the case, the overall fee may be higher as each bank involved will charge a separate fee. Thus, it is wise to choose a service that involves as few intermediary banks as possible to reduce the commission. Do also note that intermediary bank fees are only charged with money transfers through a bank.

4. Foreign Exchange Fee

Foreign exchange fees are included in the exchange rate each bank sets on its own. When sending money from Japan to the U.S., the fee is incurred when the currency is exchanged from yen to dollars.

Here is a more in-depth explanation of foreign exchange commissions.

Imagine sending $100 from Japan to the U.S. If the bank’s own exchange rate is 116 yen per dollar when the actual rate is 115 yen per dollar, how much will the exchange commission be?

The actual exchange rate for $100 is 11500 yen, but at the bank's rate, it costs 11600 yen to send $100, so the difference of 100 yen is taken as an exchange commission. In short, the closer the difference between the actual exchange rate and the bank rate is to zero, the lower the commission fee will be.

Exchange rates fluctuate depending on the amount of demand for each currency, so it is recommended to always check the exchange rate before sending any money. Do note that some money transfer services do not charge an exchange commission.

5. Lifting Fee

A lifting fee is charged when transferring money without exchanging currency. The lifting fee is always applied when sending money in yen to another country. On the other hand, many banks do not charge the lifting fee when transfering foreign currency into a foreign currency deposit account as it is. The reason for this is that when a deposit is made into a foreign currency deposit account, the exchange procedure is performed at a rate that already includes exchange fees.

Although it might seem like an option that allows one to save on fees, this lifting fee may result in higher fees in some cases. Unless there is a reason to send and keep money in yen, this method is not recommended.

How Long Do Money Transfers to the U.S. Take?

Bank Transfers

In most cases, it takes about 5 to 7 business days to complete a money transfer to the U.S. If the money is sent through a bank, the transaction will be conducted via a correspondent bank based on the correspondent agreement mentioned above. Some banks may utilize multiple intermediary banks, which will increase the time taken for the transaction process.

Money Transfer Services

Money transfer services typically take 1-2 business days to complete a money transfer to the U.S. These services can perform transactions quicker than banks as there are no intermediaries such as relay banks or receiving banks, which are unique to bank transfers.

Recommended Services for Money Transfers to the U.S.

#1: Banks

When money is sent from a bank to the U.S., the transaction involves the source bank, the receiving bank, and any intermediary banks (correspondent banks). When the source bank sends money to another country, the remittance message is transmitted through the international banking network known as SWIFT, and the remittance exchange proceeds. In other words, remittances cannot be exchanged in countries that are not in the SWIFT network.

Therefore, it takes a longer time for the transfer to be completed as it is processed through various agencies and banks.

#2: Money Transfer Service – PayPal

PayPal is a money transfer service that supports remittances to 190 countries in 23 currencies and is also compatible with online payments at commercial facilities.

The remittance fee is inexpensive at 499 yen per transaction. However, PayPal uses its own exchange rate, which means there is a "hidden fee" where a currency conversion fee is added on top of the actual exchange rate. A transaction through PayPal usually takes about 3 business days.

The currency conversion fee is charged when a transaction is made in a different currency from the source currency. Paypal requires the sender to pay 4% and the receiver to pay 3% of the transaction if the money is sent in Japanese yen and received in U.S. dollars.

#3: Money Transfer Service – Wise (formerly Transferwise)

Wise is a money transfer service that supports money transfers to 80 countries in 53 currencies. It has a reputation for being user-friendly, as transactions can be performed easily on their app.

The remittance fee to the U.S. is set at 0.75% of the amount converted and a flat fee of 89 yen, and there are no hidden fees as the exchange rate is based on the mid-market rate. A transaction through Wise usually takes about 1 to 2 business days.

However, Wise's remittance fee has been raised recently, so do check it out to confirm the new fees before using the service.

Source: https://wise.com/price-change/send-money

#4: Money Transfer Service – Curfex

Curfex is a money transfer service that supports money transfers to 46 countries, mainly the United States and South Korea. It is well known for its low fees and speedy service.

The remittance fee is set at 1% of the withdrawal amount, and there is no need to worry about hidden fees as it uses the mid-market rate. A transaction through Curfex can be completed within the day or in 2 business days at most.

Source: https://www.curfex.com/?lang=en

The following table compares the various fees for these three international money transfer services.

Is it Possible to Transfer Money to the U.S. by Check?

It is possible to send money to the United States by check. A check must be issued by a Japanese bank that specifically handles checks, which is then sent to the receiver in the U.S. via post, and the U.S. bank cashes the check.

However, it is important to note that fewer and fewer megabanks in Japan provide support for international money transfers via check. There is also a fee for issuing checks, and considering that the money can be lost if the check itself gets lost, this is not really a recommended method to send money.

Are there any taxes when sending money to the U.S.?

Will taxes be incurred when sending money to the U.S.? Whether the money transfer is made between individuals or not, the tax office will know that there has been a transaction. This is due to a regulation that requires banks to send a Foreign Remittance Report to the tax office when remittances of 1 million yen or more are made.

Therefore, remittances from abroad as part of an income are subject to taxation as income tax, regardless of the amount.

There is a misconception that the tax office will not be notified of remittances below 1 million yen, but that is not true. Even if the remittance amounts to less than 1 million yen and there is no obligation to submit a report, the tax office can choose to confirm the fact of the remittance and request a tax inspection. The filing of tax returns should be considered mandatory for money received through overseas remittances.

Documents Required for Money Transfers to the U.S.

When sending money to the U.S., there are certain documents and information that must be submitted. The information required varies depends on whether the money is sent by an individual or a corporation, and we will take a look into both in this section. There may be differences in the required documents depending on the bank or money transfer service, but we will focus on the documents required for money transfer services here.

Required Information for Individuals Sending Money to the U.S.

When making a personal remittance, all that is needed are identification documents. The most common way to submit these documents is through online verification. Users can complete the online certification process by submitting one of the following.

• My Number card + ID photo
• Driver's license + ID photo
• Residence card + ID photo

Required Information for Corporations Sending Money to the U.S.

When making a corporate remittance, several documents listed below need to be submitted:

• Certificate of All Historical Matters (issued within 6 months)
• List of shareholders
• Authorization document permitting the person in charge to act on behalf of the company (Power of Attorney)
• Identification document
  

Any of the following can be used as an identification document:

• My Number card + ID photo
• Driver's license + ID photo
• Residence card + ID photo
  

Once these documents have been submitted and reviewed, users can start sending money overseas.

Cuerfex is the Best Option for Money Transfers to the U.S.!

In this article, we have looked into the steps and procedures for money transfers to the United States.

Based on the points discussed, Curfex is the recommended international money transfer service when sending money to the U.S. Curfex is a highly reliable service that allows transactions to 46 countries and has been approved by the Financial Services Agency.

The best features of this service is that it charges only a 1% fee and uses the mid-market rate, which means there are no additional fees. Some services charge hidden fees by using their own exchange rate which adds an additional fee on top of the actual exchange rate. With Curfex, there is no need to worry about such hidden fees, and users can rest assured as all fees are shown clearly.

Curfex’s money transfer also takes between one to two days, making it an ideal option when money has to be sent in a hurry.

In addition, Curfex’s sign-up process is simple and quick, usually taking less than 2 hours to open a personal account. Many users have experienced long waits with other services which take a long time to review documents when opening a new account. In comparison, Curfex’s process takes only a short time, allowing users to proceed to using the service as soon as possible.

Our commitment to delivering exceptional service sets us apart from the competition and ensures that our customers have a positive experience every time they use our service. Whether you have a question about fees, exchange rates, or anything else related to your money transfer, our team is here to help. We are dedicated to making your money transfer process as smooth and stress-free as possible, and we are always happy to assist with any concerns or issues you may have. So if you're looking for a reliable and customer-focused money transfer service, look no further than us!

Not only does Curfex offer the lowest prices in the industry, it also offers a free first transfer.

If you are considering an international money transfer, give Curfex a try today!

https://remit.curfex.com/en