How to make an International Money Transfer
Sending money abroad can become a complicated and tedious process if done incorrectly. Additionally, fees may unexpectedly turn out to be quite high. Naturally, you want the process to be as inexpensive and straightforward as possible.
This article explains overseas money transfer methods using banks or modern online services like Wise, covering everything from essential information to fees.
How to Send Money Abroad
The specific procedure varies depending on the service you choose, but generally follows these steps:
1. Choose a Money Transfer Method
There are various methods for sending money abroad, including banks and dedicated online services. Select the one that best meets your needs. Below, we outline the features, benefits, and drawbacks of each.
Sending Money Abroad via Banks
Many people associate overseas money transfers with banks. Most banks, including online banks, allow international transfers.
Banks typically use a system called SWIFT, which is a global network that connects banks worldwide. Even if two banks don’t have a direct relationship, they can process transactions through intermediary (correspondent) banks.
How to Send Money Abroad with Banks
You can send money abroad via bank branches or online. However, branch-based transfers often involve higher fees and longer processing times. Below, we’ll focus on the more convenient option: internet banking.
Log in to your account.
Apply for overseas transfer services (identity verification required).
After registration, select the "Overseas Transfer" option.
Choose the currency and amount to send.
Enter the recipient's information.
Review the details and complete the transfer request.
What Information is Required?
| Identity Verification | Recipient Information |
|---|---|
|
|
Advantages of Using Banks for Overseas Transfers
Direct transfers from your regular account.
Capability for high-value transfers.
High reliability and security.
Assistance available at bank branches.
Disadvantages of Using Banks for Overseas Transfers
High fees.
Exchange rates include hidden currency conversion fees.
Longer processing times.
Online transfer service –Wise
Wise is an online service that simplifies international money transfers. You can deposit funds into Wise’s Japanese account, just like a domestic transfer.
Wise is known for its low fees and transparent currency exchange rates, as it uses the actual market rate. In addition to transfers, Wise also offers features like multi-currency accounts and debit cards.
How to Send Money with Wise
To send money via Wise, you must first register for free and complete identity verification. Once that’s done, follow these steps:
Log in to your account and select "Send Money" from the home menu.
Choose the source of the funds (your Wise balance or another source).
Select the currency and amount to send.
Enter the recipient's information.
Review the details.
Choose a deposit method and complete the payment.
Transfer request completed.
What Information is Required?
| Identity Verification | Recipient Information |
|---|---|
| Photo ID | Name |
| Address verification | Bank name, branch name, and branch address |
| A selfie holding your photo ID | SWIFT/BIC code |
| My Number documentation | Account number (or IBAN, depending on the country) |
If you do not have the recipient’s bank account information, you can input their email address.
You can see the details of verification in their help center page.
Advantages of Using Wise for International Transfers
Transfers use the mid-market rate, with no markup on currency exchange fees.
Transparent fee structure with no hidden costs.
Ability to send money to over 160 countries.
Easy to complete transactions entirely online.
Available for business use, supporting corporate accounts.
Disadvantages of Using Wise for International Transfers
Cash or check transfers are not available.
Fees and conditions vary depending on the recipient's country and currency.
Cannot send amounts exceeding 1 million yen in a single transfer.
No physical branches, limiting in-person support.
PayPal for International Transfers
PayPal is an international money transfer service with over 430 million users worldwide. It is also widely known as a payment method for online shopping. With PayPal, users can easily send money overseas to other PayPal users.
How to Send Money with PayPal
To use PayPal for international transfers, you need to create a free PayPal account. Note that you cannot transfer funds directly to a bank account; the recipient must also have a PayPal account.
Log in to your PayPal account.
Open the "Send Money" menu.
Enter the recipient's name, PayPal username, email address, or mobile phone number.
Select the amount and currency, and optionally add a message.
Choose the payment type (personal payment or commercial payment).
Select your payment method.
Review the details and complete the transfer.
What Information is Required?
| Identity Verification | Recipient Information |
|---|---|
| Driver’s license | Name |
| Driving history certificate | PayPal username |
| My Number card | Email address |
| Residence card | Mobile phone number |
For international transfers, My Number registration is mandatory.
Advantages of Using PayPal for International Transfers
Low transfer fees of just 499 JPY.
Send money using only the recipient's PayPal account information.
Widely used worldwide, with support for many currencies.
Can also be used for online shopping payments.
Available for business use.
Disadvantages of Using PayPal for International Transfers
Exchange rates include high currency conversion fees.
Cannot transfer funds directly to a bank account.
Transfers exceeding 1 million yen are not allowed.
Japan Post Bank (Yūcho Bank) for International Transfers
Yūcho Bank, with branches across Japan, also offers international transfer services. To use this service, you must have an account with Yūcho Bank. Transactions can be conducted either online or at a branch.
How to Send Money via Japan Post Bank
Below is the process for completing an international transfer by creating a money transfer request form online, printing it, and submitting it at a branch.
Open the International Money Transfer Request Form page.
Select the recipient's country.
Enter your information (name, account number, etc.).
Input the recipient’s details.
Specify the transfer amount, currency, and purpose of the transfer.
Review the information and complete the form creation.
Print the completed form and apply your seal.
Bring the printed form and required documents to a Yūcho Bank branch.
Submit the documents to complete the transfer process.
What Information is Required?
| At the Branch | Recipient Information |
|---|---|
| Passbook or cash card | Name |
| Registered seal | Address |
| ID with your name and address | ISO country code |
| My Number documentation | Bank name |
| Proof of source of funds (e.g., payslips, bankbook) | Bank code (SWIFT, ABA, IBAN, etc.) |
| Proof of transfer purpose (e.g., invoices, estimates, or family relationship documents) | Account number |
Advantages of Using Japan Post Bank for International Transfers
Transactions can be conducted online or at a branch.
No intermediary bank fees for specific countries.
Transfers available to nearly 200 countries and regions.
Direct transfers from your Yūcho Bank account.
Allows for relatively large transfers.
Disadvantages of Using Japan Post Bank for International Transfers
High transfer fees.
Exchange rate fees are not transparent.
Transfers take longer to process.
Cannot send in yen or foreign currencies.
Not available for corporate use.
Cash Pickup Services for International Transfers
Some international money transfer services, such as Western Union and WorldRemit, allow recipients to collect cash from partner locations. These services are ideal when the recipient doesn’t have a bank account, and funds often become available within minutes of sending. Below is an example of how to transfer money using Western Union.
How to Send Money with Western Union
Western Union offers multiple ways to send money, including online, via their app, at physical locations, or even at convenience stores. Here's how to send money from a physical location:
Visit a Western Union agent location.
Provide identity verification.
Fill out the application form with the recipient's details.
Choose the recipient's method of receiving funds.
Pay the transfer amount and any applicable fees.
Receive a confirmation receipt with the Money Transfer Control Number (MTCN).
Share the MTCN with the recipient.
The recipient collects the money at a Western Union location overseas.
What Information is Required?
| For Sender (Identity Verification) | For Recipient |
|---|---|
| For Japanese nationals: | Name |
| Passport | Address |
| Driver’s license | Contact information |
| My Number card or resident record with My Number | Bank details (if using a bank account) |
| For foreign nationals: | Mobile money account details (if applicable) |
| Residence card | |
| My Number card or resident record with My Number |
Advantages of Using Western Union
Multiple receiving options, including cash pickup and mobile money.
Wide network of countries and currencies supported.
Fast transfers, often within minutes.
Convenient transfer options via online, in-store, or at convenience stores.
Disadvantages of Using Western Union
Exchange rates include high currency conversion fees.
Cannot send amounts exceeding 1 million yen in a single transfer.
Transfer and pickup methods vary depending on the recipient’s country.
2. Choose a Provider
The next step is to select a provider, which refers to the financial institution or service you’ll use for the transfer. For example, banks like Rakuten Bank or Sumitomo Mitsui Banking Corporation, and online services like Wise or Western Union are common options.
Providers differ in terms of fees, transfer limits, and supported currencies. When choosing a provider, consider the following factors:
Supported countries and currencies
Payment methods (bank transfers, direct debit, credit card, cash, etc.)
Fees (including intermediary bank fees)
Exchange rates (watch for added forex margins)
Transfer speed
Transfer limits
3. Prepare the Necessary Documents and Information
No matter the method, you’ll need to verify your identity and register your My Number (for residents of Japan).
Required Documents
| Identity Verification | Examples |
|---|---|
| Identity documents | Driver's license, driving history certificate, passport, residence card, My Number card, resident record, or health insurance card |
| My Number documents | My Number card or a resident record with My Number |
| Address verification (if required) | Driver's license, passport, residence card, resident record, or utility bills with address details |
Recipient Information
Make sure to confirm the recipient’s details in advance:
Full name: Must match the name on their account or official documents.
Address: Including postal code and country.
Contact details: Phone number or email address.
Bank account information:
Bank name and branch name
Bank address
Bank codes (SWIFT, BIC, ABA, etc., depending on the country)
Account number (IBAN if applicable)
Additional Documents (if required)
Proof of the source of funds: Salary slips, passbook, etc.
Proof of purpose for transfer: Invoice, estimate, contract, or documentation of your relationship with the recipient.
4. Compare Fees
Transfer fees vary depending on the provider, amount, destination country and currency, and payment/receiving methods. Banks often charge higher fees, while online services tend to be cheaper.
When comparing fees, don’t just look at the transfer fees; also consider:
Exchange rate margins: Some providers add high forex margins.
Intermediary bank fees: For example, SWIFT transfers may involve extra charges.
Providers like Wise, which uses real exchange rates with no added margins, can be particularly cost-effective.
5. Make the Payment
The way you deposit funds for the transfer depends on the provider. Common methods include:
Bank transfers (to the provider’s specified account)
Debit card payments
Cash deposits
Direct debit from your account
Note that fees may vary depending on the payment method.
6. Currency Conversion and Transfer
After payment, the funds will be converted from JPY to the recipient’s currency and sent using the selected method. Transfer times vary by method, ranging from instant to about a week.
Can You Cancel a Transfer?
The ability to cancel a transfer depends on the provider’s terms and conditions. Some providers allow cancellations if the funds haven’t been credited yet, though a reversal fee may apply. In other cases, you may need to request a refund from the recipient. Check the provider’s cancellation policy for specifics.
What Are the Fees for International Money Transfers?
Here, we compare the fees for sending 300,000 yen from Japan to the United States using representative providers.
Note: The comparison includes online transfer processes and intermediate bank fees.
| Fee | Exchange Rate (per 1 USD) | Amount Received |
|---|---|---|
| Wise | 2,045 yen | 150.500 yen (real exchange rate) |
| Mitsubishi UFJ Bank | 6,000 yen | 151.676 yen |
| Rakuten Bank | 1,750 yen | 151.606 yen |
| PayPal | 499 yen | 157.081 yen |
| Japan Post Bank | 3,000 yen | Not disclosed |
| Western Union | 250 yen | 151.515 yen |
(Created on February 25, 2024, 23:17 GMT+1)
As shown, even when the transfer fee is low, exchange fees can impact the amount the recipient will receive. If you want to save on costs, it may be a good idea to consider services like Wise that offer transfers at mid-market exchange rates.
How Long Does an International Money Transfer Take?
The time it takes for the money to reach the recipient is another important factor. Bank transfers can take several days to a week, while online services may offer instant transfers.
| Provider | Time to Receive Funds (Approx.) |
|---|---|
| Wise | 1–3 business days |
| Mitsubishi UFJ Bank | A few days or longer |
| Rakuten Bank | 1–3 days after the transfer date |
| PayPal | Instant–a few minutes |
| Japan Post Bank | Within 2–7 business days |
| Western Union | Instant–up to 5 days |
How to Transfer Money Internationally Safely?
To ensure a safe international transfer, consider the following:
1. Use a trusted provider with strong security measures.
For non-bank services, verify if the provider is registered as a money transfer operator with the Financial Services Agency (FSA).
2. Double-check recipient details before transferring.
Confirm the recipient’s account number, address, and other details.
3. Beware of impersonation scams.
Always confirm the identity of individuals requesting money transfers, especially if the request is unexpected.
Conclusion
So far, we’ve looked at methods for international money transfers. The process, fees, and time for transfer can vary depending on the provider, so assess your needs and choose the best option for your situation.