The best exchange rate for Japanese Yen is obtained by always paying with a card since it is by far the most cost-effective option. And for carrying some cash, the best option is to withdraw money from an ATM.
In other words, the best strategy to save the maximum amount of money would be to always pay with a card (as we will see later, in 2024 Wise card offers the best exchange rates and lowest costs in the market) and only withdraw the amount of cash from an ATM that we will need.
Certainly, this technique to save the most money possible on your vacations may surprise you because ultimately, if you go to any currency exchange or bank, you will see how they advertise loudly that “there are no commissions,” and therefore, one could simply think that the logical thing would be to exchange yen for the exchange rate at that time, right? Well, not quite! Everything has a cost, even paying with a card has a cost, even if they don’t tell you or you don’t see it at first glance.
I’m going to tell you a secret: this website was created by a group of friends who have worked for several years in currency exchange offices, and frankly, changing cash is the worst option by far. Moreover, to give you an idea of the magnitude of this bad alternative, you should know that most currency exchange operators or bank employees have discounts to exchange currencies compared to the exchange rates offered to customers. But even with those discounts, we never exchange cash. At most, depending on the trip, only a small amount for certain payments or if it is necessary to enter the country.
Therefore, it is clear: always pay with a card and only withdraw the yen in cash from an ATM that we will need. Now let’s see how to minimize the costs in both cases:
What is the best card for international payments?
Based on the study we have conducted of all the cards available on the market for this year 2024, for payments in any foreign country, travel cards have lower costs than bank cards, and among travel cards, Wise card provides the lowest costs.
These results are valid not only in terms of costs for payments in international stores in foreign currency (Wise would offer the best conditions, other travel cards would be around 4 times more expensive on average, and bank cards would be around 10 times more expensive on average), but also in the costs of withdrawing cash in foreign currencies from ATMs outside your country (Wise would again offer the lowest fees, other travel cards would be around 4 times more expensive on average, and bank cards would be around 20 times more expensive on average).
Also, if you want to know the exact differences in costs and functionalities among the different cards available on the market in 2024, do not miss our comparative study at this link. As you will see, this comprehensive study analyzes all types of cards (debit, credit, and prepaid) and all types of providers (banks, fintech, financial institutions, etc.).
Is it necessary to take cards from our country abroad?
As we mentioned, it is preferable to use the Wise card instead of a conventional bank card or other travel cards since you will save a significant amount of money when paying in foreign stores and when withdrawing money from international ATMs by paying the lowest possible fees.
In this regard, in principle, it would not be necessary to carry any other card, but keep in mind that if you are going to make payments such as car rentals, you will need a credit card since most car rental companies will hold an amount as a deposit and will only accept credit cards.
If, on the other hand, you are not going to carry out this type of operation, it is recommended to leave your bank cards with higher balances at home and only for security reasons, it would be advisable to carry an extra debit card with a small balance in case of emergencies (imagine that your other card gets damaged or stolen, and you also lose your phone, so you would have no means of payment).
Keep in mind that in case of theft, there is a risk that fraudulent operations may be carried out with your cards within their limits, while with the Wise card we recommend, your balance will never go negative, so only the deposited balance can be spent.
Additionally, you can instantly block your Wise card from your mobile phone, while with your bank cards, you may have to call your bank to cancel them, running the risk that they may not provide service at that time due to a holiday or being outside customer service hours.
For all these reasons, when traveling, it is always better to carry a debit card like Wise with the amount of money you will need. If you need more, you can always reload it instantly through the mobile application, and if you want to block it due to loss or theft, you can do it immediately through the application as well. This way, you will have full access to your money at all times, without paying commissions for it and minimizing the risk of theft.
As you can see, this card has numerous functionalities through the mobile phone, so it is important to make sure your phone battery is always well charged. Remember that plugs may be different in many countries. Therefore, it would be a very good idea to get a universal plug adapter for traveling, as it can be useful for any future trip you plan. In this link, for a very affordable price, we show you a universal plug adapter, as well as other ideal and necessary products for traveling.
Finally, it is important to know that if you are going to bring your credit card from your bank to pay deposits in operations such as car rentals, it is recommended to notify your bank before traveling abroad and inform them of the limits you will need. Keep in mind that all cards have daily, weekly, and monthly limits, and when traveling, you will spend more than usual, so if you have relatively low limits without knowing it, you could reach your limit and find yourself in serious trouble.
What to do if my card runs out of balance abroad?
If your debit card runs out of balance abroad, you can always obtain money in a very simple way:
- If you have a bank card, you should contact a family member or friend who is a customer of the same bank to make a transfer to your account. Between accounts of the same institution, the money arrives instantly, so after completing the transfer, your card will be able to use the new balance in your account. Another option would be to make an “immediate transfer” between accounts of different banks, as it is also processed instantly.
- If you have a prepaid card like Wise, you can reload it through the app (or someone else can do it for you) and receive the money instantly.
What should I do if all my cards are stolen abroad?
If all your cards are stolen abroad, these would be your alternatives to get by:
- Use yen that you have withdrawn from an ATM: You can pay with the cash in foreign currency in case you have made a withdrawal from an international ATM.
- Exchange your cash currency: It is always recommended to carry some cash in your home currency in case of emergencies, as you can exchange it for yen at currency exchange establishments if needed.
- Pay with your mobile phone: If your phone has NFC technology and your bank offers mobile payment services, you should link your mobile phone with your card. Even if the card is canceled or blocked due to theft, you can continue making payments with your phone without any problem.
- Have someone in your home country pay for what you need: If you simply need to purchase a plane, train, or boat ticket, any contact you have in your country can pay for it online and send you the mobile boarding pass (or you can download it through the airline’s app).
- Receive money through money transfer agencies: In most tourist cities, there are numerous agencies of this type. In these agencies, any contact you have can make a transfer from your country for you to receive the money abroad.
- Sell your jewelry at a gold buying store: In most major cities around the world, there are numerous gold buying establishments where they will buy any gold jewelry from you without any problem.
- Sell your high-value belongings at a second-hand store: The most sought-after and easiest-to-sell items would be technological products such as mobile phones or laptops, as well as high-quality clothing and watches.
- Ask for money: The easiest way to get what you need would be to ask fellow countrymen who can trust you. If you need a small amount, the perfect place to ask is next to vending machines, as everyone receives change from them, and when you ask, it is very easy for people to give you something.
- Contact your Embassy or Consulate: As a last resort, the representatives of your country can always provide assistance.
Where to find the best cash exchange rate for Japanese yen?
As mentioned earlier, the cheapest way to obtain cash in Japanese yen is by withdrawing money from ATMs.
In any case, if you wanted to exchange cash for Japanese yen at a currency exchange office or bank, an exchange rate with a margin of less than 5% compared to the official exchange rate would be a good rate. A margin between 5% and 10% would be an acceptable exchange rate; between 10% and 15% would be a poor exchange rate, and anything above 15% would be usurious.
The official exchange rate of the Japanese yen against your currency can be easily found on Google. By subtracting the rate offered to you and dividing the difference by the official rate, you will obtain the percentage of margin being applied.
Usually, highly crowded areas in tourist sites are the worst places to exchange currency, as they apply higher margins on the exchange rates. Therefore, it is best to search online in advance for a reputable exchange establishment rather than going to the first one you see.
However, if it is a small amount of money that needs to be exchanged, it would not matter much where you exchange it in case of urgency or necessity, as it would involve assuming a small extra cost in the worst-case scenario.
How much cash is sufficient for traveling?
Exchanging cash only serves two purposes:
- It serves as emergency funds in case your card and phone are stolen, so at least you can manage: buy something to eat, make a call, travel to the embassy if you need to request a duplicate passport, and get to the airport to leave the country.
- It serves for making cash payments: in some street stores, vending machines, and for paying for services such as laundromats, phone booths, shopping carts that require coins, etc.
Therefore, depending on the number of days you will be traveling and what you plan to spend in cash, you can roughly estimate the amount you will need, which should not be a large sum in any case.
Is it possible to know if the yen exchange rate will be better or worse in the future?
Official exchange rates of all currencies function like any other financial market, such as the stock market. Obviously, there are analysts and financial experts who make predictions, but just like predicting stock prices, with the available data, there is no evidence to prove that anyone can accurately predict future prices.
Generally, foreign exchange market rates tend to be fairly stable, and over the course of a month, they do not vary much more than 5%, unless there is an unexpected economic or political event, such as the unforeseen victory of an opposition party with a groundbreaking economic program.