# Getting U.S. salary to Japan



## Meilania

I’m going to be working in Japan (Kyoto) for at least six months and getting paid in USD deposited into my US bank account. Does anyone have any suggestions for how to change that money into Yen easily and cheaply? I thought I would probably make most purchases with my US credit card that doesn’t charge international transaction fees, but will the Japanese merchants charge extra if I have a foreign card? Can I pay for things like taxis and utilities with a foreign card (VISA)? 

Would I get a better exchange rate if I brought several thousand USD cash with me and exchanged it for Yen? 

Would I lose a lot of money (in fees and/or poor exchange rate) if I took my American bank card to a bank in Japan to withdraw Yen?

Thanks!


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## larabell

I've never been charged extra for using a credit card, but... places that accept cards don't do it for charity -- the card company charges the merchant a handling fee and they pass that on in the form of higher overall prices. Plus many smaller shops and restaurants (usually the only ones worth seeking out, in my opinion) don't take credit cards at all.

Some taxis do (at least in Tokyo) but not all. If you get a cell phone while you're here, get one with a Felica chip (DoCoMo calls it "Osaifu Keitai" but I think other carriers have other names) and you can open an electronic money account, charge it using your credit card, and use that for trains, subways, buses, and even some taxis (though, again, not all). If the taxi accepts credit cards or electronic money cards, there should be a sticker on the window.

I've never tried paying utilities with a credit card. Phone and Cable TV I know you can pay by credit card so maybe you can pay gas and electric that way, too.

As for rates, I've heard credit card companies have decent rates because they do all their own exchanges on the spot market. You'd think banks would be OK as well but rates seem to vary wildly depending on the bank. I wouldn't try any of the private exchange companies at the airport but I've noticed that the real banks that have exchange windows at Narita Airport have generally OK rates. What you should do is exchange just enough to cover your expenses here for the first couple weeks and then shop around for the best rate once you're here.

Your US-based bank card won't work at most Japanese banks. You can probably find some banks in major areas that are attached to some non-Japanese ATM networks and, of course, Citibank's ATMs accept US cards (though I don't know if they have any branches in Kyoto). Recently the Japan Post Office ATMs started accepting US cards -- I don't know if they all do but most of the ones I've been to accept non-Japanese bank cards. Many ATMs charge a fee for withdrawals from other banks (both Japanese and foreign). Convenience stores have ATM machines, too, but they seem to always charge a fee and I don't know if any of them take a US-based card.

If you're being sent over by your employer, maybe you can ask if they can wire money into a Japanese bank account for you -- maybe a fixed amount from each pay check or a percentage of your pay. That way you don't have to worry about it and you'll have a card you can use just about anywhere.


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## Meilania

Thanks, Larabell!


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## TheDomingoGroup

Dear Meiliana,

Here's what I would suggest. Inform your employer that you will need to have Japanese yen while you are there. Hard to argue that point! 

Depending on the type of visa you hold, your employer may not be able to pay into your Japanese bank account without major tax implications. (Note: seek proper counsel from a tax adviser on this issue - this is not tax or financial advice!)

If your only option is to receive funds in USD, then ask your employer if they would cover the cost of you having to do an international wire once a month. Perhaps budget $60 USD / month over 6 mos. = $360. That would cover your cost of getting JPY in your hands. The currrency exchange risk still exists, but probably no something that needs to be hedged since you are only planning to be there 6 mos.

Good luck!

James


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