As a foreign resident living in Japan, sending money back home to countries like Nepal, India, Sri Lanka, Bangladesh, or the Philippines can be a costly and time-consuming process, especially if you're using traditional banking methods. While banks may seem like a convenient option, they often come with high fees, poor exchange rates, and slow transfer times. In this article, we'll explore why your bank isn't the cheapest way to send money from Japan and introduce you to alternative remittance service providers that can save you money.
The Hidden Costs of Bank Transfers
When you send money from Japan through a bank, you're likely to encounter a range of fees, including:
- Transfer fees: These can range from ¥2,000 to ¥5,000 or more per transaction, depending on the bank and the recipient's country.
- Exchange rate fees: Banks often use unfavorable exchange rates, which can result in the recipient receiving less money than expected.
- Intermediate fees: Some banks may charge additional fees for processing international transactions.
- Recipient fees: The recipient's bank may also charge fees for receiving the transfer.
For example, if you want to send ¥100,000 from Japan to Nepal, your bank might charge a transfer fee of ¥3,000, an exchange rate fee of 2%, and an intermediate fee of ¥1,000. This would leave the recipient with approximately 93,000 Nepalese rupees (NPR), instead of the expected 105,000 NPR.
Comparing Bank Transfers vs. Cash Pickup from Japan
Cash pickup services, such as those offered by SmileRemit and BrastelRemit, allow recipients to collect cash from a physical location in their home country. This can be a convenient option for those without access to banking services. However, cash pickup services often come with their own set of fees, which can range from 1% to 3% of the transfer amount.
| Provider | Transfer Fee | Exchange Rate Fee | Cash Pickup Fee |
|---|---|---|---|
| Bank | ¥3,000 | 2% | N/A |
| SmileRemit | ¥1,500 | 1.5% | 1% |
| BrastelRemit | ¥2,000 | 2% | 2% |
As you can see, cash pickup services can be a more cost-effective option than traditional bank transfers, but it's essential to compare fees and exchange rates before making a decision.
A Step-by-Step Guide for First-Time Remitters in Japan
If you're new to sending money from Japan, here's a step-by-step guide to get you started:
- Choose a remittance service provider: Research and compare fees, exchange rates, and transfer times for providers like Wise, JpRemit, and CityRemit.
- Gather required documents: You'll typically need to provide identification, proof of address, and proof of income.
- Create an account: Sign up for an account with your chosen provider, either online or in-person.
- Set up the transfer: Enter the recipient's details, transfer amount, and payment method.
- Review and confirm: Double-check the transfer details, fees, and exchange rates before confirming the transaction.
How to Fill Out a Remittance Form in Japan (Online and In-Person)
When filling out a remittance form, you'll typically need to provide the following information:
- Your name and address
- The recipient's name and address
- The transfer amount and currency
- The payment method (e.g., bank transfer, cash deposit)
- The recipient's bank details (if applicable)
You can usually fill out the form online or in-person at a designated remittance center. Make sure to review the form carefully before submitting it to avoid any errors or delays.
Mobile Money Transfers: Sending to GCash, bKash, and PayMaya from Japan
Mobile money transfers are becoming increasingly popular, especially in countries like the Philippines, Bangladesh, and India. Providers like Wise and SmileRemit offer mobile money transfer services to popular wallets like GCash, bKash, and PayMaya.
To send money to a mobile wallet from Japan, you'll typically need to:
- Choose a provider: Select a provider that supports mobile money transfers to your desired destination.
- Enter the recipient's details: Provide the recipient's mobile number and wallet details.
- Set up the transfer: Enter the transfer amount and payment method.
- Review and confirm: Double-check the transfer details, fees, and exchange rates before confirming the transaction.
Conclusion
While banks may seem like a convenient option for sending money from Japan, they often come with high fees, poor exchange rates, and slow transfer times. By exploring alternative remittance service providers like Wise, SmileRemit, and JpRemit, you can save money and enjoy faster, more convenient transfers. Use a real-time comparison tool like RatesRemit's Comparison Tool to find the best deals and make informed decisions about your international money transfers.