Quick Answers to Common Questions
How much can I transfer to a US bank account?
From Japan, Wise supports very large transfers (up to ¥150 million per transfer under their Japan program), but your sending bank's daily limits are often the real constraint. Traditional banks commonly set lower online limits (often around ¥1–3 million/day, depending on the bank and settings).
Do banks offer the best exchange rates?
Usually no. Banks commonly include an FX markup (spread) in the exchange rate, which is often more costly than the visible fee. In the real example below (captured February 10, 2026), Wise delivered about ¥3,200 more value on a ¥100,000 transfer compared with Japan Post Bank.
How do I avoid foreign transaction fees when using my card abroad?
Use a card that either waives foreign transaction fees or uses transparent conversion. Multi-currency cards (like the Wise card) and select credit cards can eliminate the typical 1.6%–3% foreign transaction fee most traditional bank cards charge.
In this guide, I'll break down exactly what's happening behind the scenes, show you a real-world comparison that demonstrates the true cost, and walk you through your actual options for sending money internationally from Japan. Whether you're supporting family overseas, paying for services abroad, or moving money between your own accounts, knowing these differences can save you significant money.
Why Google's Rate Isn't What Your Bank Offers
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| Google search of USD to JPY as of 2/17/26 with a note on the source and disclaimer. |
First, let's clear up a common misconception: Google doesn't have its own exchange rate.
The rate you see when you search "USD to JPY" or any currency pair is called the mid-market rate (also known as the interbank rate). This is a reference rate calculated from live trading between large financial institutions in the global foreign-exchange market. It represents the midpoint between what buyers are willing to pay and what sellers are willing to accept.
Here's the key thing to understand: the mid-market rate is useful for comparison, but regular customers can't actually access it.
How Banks Actually Price Their Exchange Rates
Banks start with that same market data you see on Google, but they don't pass it along directly. Instead, they apply a markup called a spread before offering you a rate. That spread is how banks earn money on currency exchange—even when their advertised transfer fee looks low or even "free."
In practical terms, your bank is:
- Buying your currency at one price (less favorable to you)
- Selling it at another price (also less favorable to you)
- Keeping the difference as profit
This cost is embedded directly into the exchange rate itself. It's easy to miss because there's no line item on your receipt that says "exchange rate markup." The loss only becomes obvious after the transaction is complete and you realize the recipient received less than you expected.
Bottom line: Google shows you a neutral benchmark. Your bank shows you a retail rate that includes profit margins, risk buffers, and operational costs.
The Hidden Cost: A Gaming Analogy
This reminds me of the swordsmith in The Legend of Zelda: Majora's Mask. When you bring him Gold Dust to upgrade your sword, the first upgrade costs 100 rupees. But once he sees the valuable Gold Dust, the work suddenly becomes "free"—on the condition that he gets to keep whatever Gold Dust is left over afterward.
You never find out how much Gold Dust was actually needed, or how valuable the remainder was. It makes you wonder: how much did the sword really cost? And how much quietly stayed with the smith?
Currency exchange works similarly. The "fee" might look reasonable, but the real cost is often hidden in the exchange rate itself—the part you only discover after the transaction is done.
Real-World Comparison: Wise vs. Japan Post Bank
To understand the real cost of sending money overseas from Japan, I ran the same transaction through both Wise and Japan Post Bank using actual, on-screen rates captured on February 10, 2026. (Rates change constantly—treat this as a snapshot example.)
The Scenario
Sending ¥100,000 from Japan to the United States
Option 1: Wise
When I checked the Wise app, here's what it showed:
- Exchange rate: 1 USD = 156.820 JPY (near mid-market rate)
- Transfer fee: ¥987 (clearly displayed upfront)
- Amount received: $631.38
Everything is transparent. The fee is deducted before conversion, the exchange rate is shown clearly, and I know exactly how much the recipient will receive before I send anything.
Option 2: Japan Post Bank
At the same time, Japan Post Bank offered:
- Exchange rate: 1 USD = 158.82 JPY (approximately 2 yen worse per dollar)
- Flat transfer fee: ¥3,000
- After the ¥3,000 fee is deducted: Only ¥97,000 actually gets converted
- Amount received: Approximately $610.61
Note: This assumes no additional intermediary bank deductions, which can sometimes occur with traditional wire transfers.
The Bottom Line
Same ¥100,000 sent. Result: Wise delivers approximately $20.77 more.
At current exchange rates, that's roughly ¥3,200 in additional value—more than three times Wise's transfer fee.
That difference comes from two factors Japan Post Bank applies by default:
- A worse exchange rate (2 yen per dollar adds up fast)
- A large flat transfer fee (¥3,000)
What Are Your Actual Options?
The right choice depends on what you're trying to accomplish. Before choosing a service, ask yourself:
- Are you sending money between your own accounts?
- Are you sending cash to a person?
- Are you paying for something internationally?
- How much do you need to send?
The answers to these questions matter more than brand loyalty.
Option 1: Wise (Best for Most Situations)
Best for: Personal international transfers, currency exchange, sending to bank accounts
For the majority of personal international or cross-currency transactions, Wise is usually the most cost-efficient option. What you send and what arrives at the destination is typically very close to what you'd expect based on the mid-market rate.
How Wise Actually Works
Wise doesn't operate like a traditional international wire transfer. Instead of physically moving money across borders each time, it uses a network of local bank accounts in different countries.
Here's how it works in simple terms:
- You transfer money domestically into Wise's local account (in your country)
- Wise then pays the recipient domestically from its account in the destination country
- No money actually crosses borders in your transaction
Because of this structure, Wise often avoids the chain of intermediary banks that traditional international wires rely on. Fewer intermediaries typically means:
- Fewer hidden fees
- Faster settlement (often same-day or next-day)
- More predictable delivery amounts
Think of it this way: It's like having a trusted relative in another country who pays someone locally on your behalf—except instead of an uncle with a suitcase of cash, it's a regulated financial institution operating at scale.
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Similar Services
There are other services that operate on a similar model to Wise, including Revolut, OFX, and CurrencyFair. While I don't have firsthand experience with all of them, many are built for specific use cases and can be quite competitive depending on the currency pair, transfer amount, and delivery method.
Option 2: Western Union (Best for Cash Pickup)
Best for: Sending to recipients without bank accounts, urgent cash needs, locations with limited banking infrastructure
Western Union is another realistic option—a name you've likely heard before. Originally founded as a telecommunications company in the 19th century, Western Union later evolved into a global money transfer network and became one of the most recognizable brands in international remittances.
Where Western Union Stands Apart
The key difference is accessibility. Western Union allows you to send money to someone who doesn't have a bank account. The recipient can walk into an agent location, present identification and a transfer number, and receive physical cash.
In regions where banking infrastructure is limited—or where the recipient simply operates primarily in cash—this makes Western Union a practical and sometimes necessary option.
This isn't just a pricing difference; it's a structural difference. Western Union operates a global payout network built for cash distribution, while services like Wise are designed primarily for bank-to-bank transfers. That distinction matters when choosing the right tool for the job.
Option 3: Traditional Bank Wire Transfer
Best for: Very large transfers, business transactions, situations requiring formal documentation
Traditional bank wires can still make sense for:
- Transfers exceeding ¥10 million
- Real estate purchases
- Business transactions requiring detailed paper trails
- Situations where you need your bank's direct involvement
However, be prepared for:
- Higher fees (often ¥3,000–¥7,000 or more)
- Worse exchange rates
- Longer processing times (2–5 business days)
- Potential intermediary bank fees
Foreign Transaction Fees: What You Need to Know About Using Cards Abroad
If you're traveling internationally or making purchases in foreign currencies, you'll also encounter foreign transaction fees on your debit and credit cards. This is separate from money transfers but equally important to understand.
What Triggers a Foreign Transaction Fee?
A foreign transaction fee is charged whenever you:
- Make a purchase in a foreign currency (online or in person)
- Use your card at a merchant outside your home country
- Withdraw cash from an ATM abroad
Most traditional banks charge 1.6% to 3% on every foreign currency transaction. On a ¥100,000 purchase abroad, that's an extra ¥1,600–¥3,000 in fees—completely hidden in the exchange rate and labeled simply as "foreign transaction fee."
How to Avoid Foreign Transaction Fees
1. Multi-Currency Debit Cards
Services like Wise and Revolut offer debit cards that allow you to hold and spend multiple currencies with minimal fees. The Wise card, for example, uses the mid-market exchange rate with a small conversion fee (typically 0.35–1% depending on the currency)—far better than traditional banks.
2. Credit Cards with No Foreign Transaction Fees
Some credit cards waive foreign transaction fees entirely. In Japan, certain American Express or premium cards may offer this benefit. Always check your card's terms before traveling.
3. Pay in Local Currency
When using your card abroad, always choose to pay in the local currency rather than your home currency. Merchants often offer "dynamic currency conversion"—paying in yen when you're abroad—which uses terrible exchange rates that benefit the merchant, not you.
Want to Spend Abroad Without Hidden Fees?
The Wise card gives you the mid-market exchange rate with transparent fees—no foreign transaction charges.
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Understanding Transfer Limits and Regulations
Wise's Transfer Limits in Japan
Wise recently received approval in Japan to handle transfers up to ¥150 million per transaction. However, the real bottleneck usually isn't Wise—it's the bank you're sending from.
Your domestic bank may have:
- Daily transfer limits
- Online transaction caps
- Compliance review thresholds for large amounts
Even if Wise can receive a large amount, your sending bank may limit how quickly you can move it.
A Note on the $10,000 Threshold in the United States
You may have heard that there's something "special" about sending $10,000 to or from the United States. Here's what you need to know:
In the United States, the $10,000 figure comes from the Bank Secrecy Act (BSA), a federal law designed to combat money laundering and financial crime.
Banks are required to file a Currency Transaction Report (CTR) when a customer conducts more than $10,000 in cash transactions in a single business day.
Important clarifications:
- This rule applies primarily to physical cash (deposits, withdrawals, or exchanges)
- It's a reporting requirement, not a spending limit
- It's not an IRS tax rule and does not automatically trigger an audit
- The purpose is regulatory oversight, not punishment of normal financial activity
Sending more than $10,000 through a bank wire or online transfer service is not automatically illegal and does not automatically block the transaction. However, financial institutions are required to monitor large or unusual transfers under anti-money-laundering (AML) regulations.
This means that if you move a large amount of money, a bank may:
- Ask about the purpose of the transfer
- Request documentation (proof of purchase, proof of relationship, etc.)
- Temporarily review the transaction for compliance
That review is a compliance process, not an accusation.
If the transfer is legitimate—supporting family, purchasing property, or moving your own savings—there is generally nothing to fear. Documentation may be requested, but large transfers themselves are not prohibited simply because they exceed $10,000.
Source: Bank Secrecy Act - FinCEN Resources
Which Bank Is Best for Holding USD in Japan?
While this article focuses primarily on transferring money, many readers ask: "Which Japanese bank should I use if I need to hold or receive USD?"
The honest answer is that most traditional Japanese banks are not ideal for holding foreign currency. Here's why:
- Poor exchange rates when converting to/from JPY
- Monthly maintenance fees for foreign currency accounts
- Limited online functionality for foreign currency transactions
- High minimum balance requirements
Better Alternatives for Holding USD
1. Multi-Currency Accounts (Wise, Revolut)
These services allow you to hold USD (and many other currencies) in the same account, convert at near mid-market rates when needed, and avoid monthly fees. Wise, for example, provides local USD account details (routing number and account number) so you can receive payments as if you have a US bank account.
2. International Banks with Japan Presence
Banks like Citibank (though they've reduced their retail presence in Japan) or SMBC Prestia offer multi-currency accounts with better functionality than traditional Japanese banks, though fees can be high.
3. US Bank Accounts (If Eligible)
If you have US residency status or qualifying circumstances, maintaining an actual US bank account may be the best option for holding USD long-term.
For most people sending or receiving moderate amounts of USD, a multi-currency account like Wise offers the best balance of cost, convenience, and flexibility.
Conclusion: Knowledge Is Money
The difference between Google's exchange rate and your bank's rate isn't an accident—it's by design. Banks profit from that spread, and for most customers, it remains invisible until after the money is sent.
But now you know:
- The mid-market rate on Google is a reference point, not an accessible rate
- Exchange rate markups are often larger than the advertised fees
- Services like Wise use near mid-market rates and transparent fee structures
- Western Union offers unique cash pickup options when bank access is limited
- Multi-currency cards can save you 1.6–3% on every foreign purchase
- Large transfers may trigger compliance reviews, but legitimate transactions are never prohibited
The next time you need to send money internationally or use your card abroad, don't just look at the transfer fee. Compare the actual exchange rates being offered, calculate what the recipient will actually receive, and choose the service that delivers the most value.
In the example we looked at, that single choice made a difference of over ¥3,200. On larger transfers, the savings compound dramatically.
Your money should work for you—not disappear quietly into hidden spreads.
Start Saving on International Transfers Today
If you’re looking for a more transparent way to move your money, I recommend checking out Wise based on my own positive experience.
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Have you compared exchange rates before making an international transfer? What surprised you most about the difference? Drop it in the comments.
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