Whether you are paying your monthly rent in Tokyo or sending your savings back home, understanding Japan’s unique transfer systems is essential. While Japan is often seen as a cash-heavy society, its digital and interbank transfer systems are highly efficient and strictly regulated.
1. Domestic Transfers: The “Furikomi” System
In Japan, the standard way to send money between local accounts is called Furikomi (振込). Unlike some countries where you use an email or phone number, Japan’s system is based on specific bank details.
What You Need for a Furikomi:
To send money to another Japanese account, you must have:
- Bank Name (Ginko-mei): The name of the recipient’s bank.
- Branch Name & Code (Shiten-mei/Shiten-bango): Every bank branch in Japan has a unique 3-digit code.
- Account Type: Usually Futsu (Ordinary) or Torikeshi (Current).
- Account Number (Koza-bango): Usually a 7-digit number.
- Recipient Name: This must be entered exactly as registered, usually in Katakana.
How to Perform a Furikomi:
- Via ATM: This is the most common method. You insert your cash card, select “Furikomi,” enter the details, and the money is transferred instantly.
- Via Online/Mobile Banking: Most major banks (MUFG, SMBC) and Net Banks (Sony, Rakuten) have apps that allow 24/7 transfers.
- At the Bank Counter: More expensive and involves filling out a paper form, but useful for very large sums.
2. International Transfers: Sending Money Abroad
Sending money from Japan to another country (like India, USA, or UK) is more complex due to strict Anti-Money Laundering (AML) laws.
The Traditional Method: Bank Wire Transfer
You can go to your local bank (like Japan Post or Mizuho) to send a wire transfer.
- Requirements: You need the recipient’s SWIFT/BIC Code, IBAN/Account Number, and your My Number Card (for tax verification).
- Pros: Very secure for extremely large amounts.
- Cons: High fees (often ¥3,500–¥7,000 per transfer), poor exchange rates, and it can take 3–5 business days.
Modern Methods: Digital Remittance Services
Most expats and businesses now use third-party services that link to their Japanese bank accounts:
- Wise (formerly TransferWise): Highly popular for its transparent mid-market exchange rates and low fees.
- Revolut: Excellent for smaller, frequent transfers and multi-currency holding.
- Western Union / Seven Bank: Good for cash-to-cash or cash-to-account transfers, especially via Seven-Eleven ATMs.
3. Key Points to Remember (Essential Insights)
- Zengan Net: This is the Japanese interbank network. Since 2018, it has operated More Time System, allowing for 24/7 instant domestic transfers between participating banks.
- Transfer Fees: Almost all domestic transfers incur a fee (usually ¥110 to ¥440). Some digital banks offer a limited number of free transfers per month.
- The My Number Requirement: Since 2016, you cannot send or receive international transfers in Japan without providing your “My Number” (Individual Number) to the bank.
- Daily Limits: For security, Japanese ATMs have a default daily transfer limit (often ¥500,000). If you need to send more, you must visit the counter with your ID and Hanko.
4. Summary Table: Local vs. International
| Feature | Domestic (Furikomi) | International (Remittance) |
|---|---|---|
| Primary Identifier | Branch Code & Account No. | SWIFT/BIC Code & IBAN |
| Speed | Instant (mostly) | 1 to 5 Business Days |
| Common Fees | ¥110 – ¥440 | ¥2,000 – ¥7,000 + Exchange Markup |
| ID Required | Cash Card / PIN | My Number Card / Passport |
Frequently Asked Questions (FAQs)
Q1. Can I open a bank account in Japan on a Tourist Visa? Ans: No. To open a bank account, you must have a residence visa (Work, Student, etc.) and a valid Residence Card (Zairyu Card). Tourists are generally not allowed to open accounts.
Q2. What is “Furikomi” and how does it work? Ans: Furikomi is the Japanese term for a domestic bank transfer. It is the most common way to pay rent or send money locally using an ATM or mobile app by entering the recipient’s bank, branch, and account details.
Q3. Do I really need a “Hanko” (Stamp) to open an account? Ans: While some modern banks like Sony Bank or Rakuten Bank allow signatures, most traditional and regional banks still strictly require a registered Hanko (personal seal) for all official transactions.
Q4. Which bank is best for foreigners who just arrived in Japan? Ans: Japan Post Bank (Yucho Ginko) is the most expat-friendly. They often allow foreigners who have lived in Japan for less than 6 months to open an account, which many “Mega Banks” refuse to do.
Q5. Is it expensive to send money from Japan to India or the USA? Ans: Traditional bank wire transfers can be very expensive, costing between ¥3,500 and ¥7,000 per transaction. Using digital services like Wise or Revolut is much cheaper and faster.
Q6. What is the “6-Month Rule” in Japanese banking? Ans: Under Japanese law, many banks classify foreigners as “non-residents” for the first 6 months. This means you might be restricted from making international transfers or using certain services until you have completed 6 months of residency.
Q7. Can I use my Japanese bank card at any ATM? Ans: Yes, but be careful of fees. Using your card at a different bank’s ATM or a convenience store (7-Eleven, Lawson) usually incurs a small fee (¥110–¥220), especially on weekends or after 6:00 PM.
Q8. Why do I need a “My Number” card for international transfers? Ans: The Japanese government requires banks to record your “Individual Number” (My Number) for all overseas remittances to prevent money laundering and ensure proper tax reporting.
Q9. Are Japanese banks open on weekends? Ans: No. Most physical bank branches are open only on weekdays from 9:00 AM to 3:00 PM. However, ATMs and online banking apps are generally available 24/7.
Q10. What should I do if I lose my Hanko or Cash Card? Ans: You must contact your bank immediately to freeze the account. You will need to visit the branch with your ID to register a new Hanko or request a replacement card.
Tips
- Save Your Recipients: If you pay rent every month, save the recipient’s details in the ATM or app. This saves you from re-entering the complex Katakana names every time.
- Watch the Clock: While the system is 24/7, some older banks still process transfers made after 3:00 PM on the next business day. Always check if your bank supports the “More Time System.”
- Avoid Hidden Fees: When sending internationally via a traditional bank, always ask if there are “Intermediary Bank Fees,” which can deduct an extra $20–$30 from the final amount.
Conclusion
Moving money in Japan is a process built on accuracy. For local transactions, the Furikomi system is your best friend. For sending money abroad, bypassing traditional banks in favor of digital services like Wise or Revolut can save you thousands of Yen in fees every year.
