Managing Money Between the U.S. and Japan

Whether you're traveling to Japan or planning to live there, figuring out how to handle your finances is essential. From exchanging cash to accessing accounts overseas, having a setup that works will make things much easier.

I spent over 10 years living in Japan and have been back and forth between the U.S. and Japan since. In this post, I’ll share my personal experiences with banking in both countries, as well as some tips for travelers and expats navigating international finances. Keep in mind that I’m not a financial advisor, this is just what has worked for me!

Banking in the U.S. for going abroad

When I first moved to Japan, my main U.S. bank was Bank of America, but over time, I realized it wasn’t the best fit. Eventually, I switched to a more flexible option.

My recommendation: Charles Schwab

I eventually made Charles Schwab’s “High Yield Investor Checking Account” my primary U.S. account. It’s a fantastic option for international travel and living because:

• It refunds all ATM fees worldwide

• There are no foreign transaction fees for cash withdrawals

• No monthly service fees, and it’s easy to manage online

With Schwab, I don’t have to worry about fees or exchange rates when withdrawing cash. I just go to any ATM, even ones in convenience stores, and the local currency comes straight out of my U.S. checking account.

For more details on Schwab’s checking account, check out their website.

Banking in Japan

If you’re planning to live in Japan, you’ll likely need a Japanese bank account for things like salary deposits or paying bills. However, opening a bank account in Japan is often more rigid compared to the U.S., and closing one can be even more difficult.

I’ve had experiences with a few Japanese banks such as Fukuoka Bank, Mitsubishi UFJ, and Japan Post’s Yucho. While I had no serious issues with them while living in Japan, like most domestic banks in the U.S., they had their limitations when considering things international.

My recommendation: SMBC PRESTIA

I decided to make my Japanese bank account at SMBC Prestia. It’s a great option for international people in Japan because:

• Available English support, both in-branch and through their app

• You get a JPY account and an international currency account which sometimes offers high-interest promotions, similar to a CD

• There’s no monthly fee for banking online while outside of Japan

• You’re able to access your account from SMBC ATMs, which is one of Japan’s biggest banks

PRESTIA branches are mainly in Tokyo, with a few locations in other Japanese cities. The branches that I’ve been to are also nicer than that of the other banks.

Credit Cards and Cash in Japan

When visiting Japan, many people assume they’ll need a lot of cash because of the country’s reputation as a cash-based society. While it’s true that many places (especially in rural areas or small shops) still only take cash, big cities like Tokyo are increasingly cashless.

Cashless payments in Japan

As of 2023, about 39.3% of transactions in Japan were cashless, which includes credit/debit cards, electronic money, and QR code payments according to Japan’s Ministry of Economy, Trade and Industry. [J]

For most of my purchases in Tokyo, I use Apple Pay or physical credit cards with an IC chip, with only the occasional need for cash.

Tip for Apple Pay: If you’re trying to use Apple Pay in Japan, don’t say “Apple Pay” to the cashier. Instead, ask to pay by “credit card” and then “touch,” as there’s often confusion about terminology.

There are places that don’t accept contactless payments but do accept credit card. These credit cards almost always need the IC chip. Some retailers and more commonly online checkouts don’t accept foreign credit cards for various reasons such as higher fees which causes them to lose money, and higher risk of fraud.

Amongst the credit cards that I’ve had most success with using in Japan are the Apple Card and American Express cards. Visa cards tend to have the most issues.

Choosing the right setup for your trip or move to Japan can help you immensely. Hopefully, my experiences help you find the right solutions for your needs!

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