Travel to Japan is becoming popular, with demand for Japan increasing at low prices amid the all-time low yen.
When traveling to Japan, it has become more complicated to determine which is more advantageous: exchanging yen in Korea or paying with a card in Japan.
According to the financial market on the 11th, as of 2:10 pm on this day, the won-yen financial exchange rate is recording 907.55 won per 100 yen.
The won-yen exchange rate fell to the 800 won range, reaching 896.21 won on the 26th of last month. Since June of this year, the yen has been fluctuating in the 800 won range for the first time in eight years since June 2015.
As the low yen continues, Japan has become a popular tourist destination, and the proportion of trips to Japan among total overseas travel is also increasing.
According to the industry, Japan’s share of the total number of overseas package and airline ticket reservations made by Very Good Travel in the third quarter of this year was 26.6%, a sharp increase of 21.5 percentage points compared to the same period last year (5.1%). Compared to the previous quarter, it increased by 1.5% points.
This is due to the explosion in travel demand after the pandemic and the increased demand for travel to Japan, which has become relatively cheaper due to the low yen phenomenon.
Accordingly, the calculation of whether it is more advantageous to exchange yen domestically or use a card in Japan is becoming more complicated.
To conclude, since each person’s main bank and the cards they use are different, you can decide by comparing the overseas usage fees of the card company you use, preferential events for each card, and currency exchange fees for each bank.
First of all, when exchanging currency, it is more advantageous to exchange money through the bank’s mobile app (application) rather than visiting each bank branch.
When you visit a bank branch, you can receive a preferential exchange fee of 50-80% for yen, although it varies depending on the bank. On the other hand, mobile apps provide preferential treatment of up to 90%. If you apply for currency exchange in advance through the mobile app, you can receive it at Incheon Airport on your departure date.
When using the card overseas, an international brand fee and overseas usage fee are charged.
International brand fees are divided into international brands such as Visa Card (1.1%), Master Card (1.0%), Amex Card (1.4%), Union Pay (0.8%), and BC Global Card/JCB Card (0%). Different.
Overseas usage fees vary by domestic card brand: SC Card (0.35%), Woori Card (0.3%), Kookmin, Nonghyup, and Citi Card (0.25%), Lotte, Samsung, and Hana Card (0.2%), and Shinhan and Hyundai Card (0.18%). %) etc.
For example, if you make a payment overseas with a credit card with the MasterCard mark on Lotte Card, a 1.2% fee of the payment amount will be charged.
However, there are cards that do not have overseas transaction fees, and each card company applies promotions, so you can check the benefits of your card company in advance.
Also, when paying with a card in Japan, it is advantageous to use the local currency, yen. This is because if you use a service that pays in Korean currency (DCC), you have to pay an additional fee of 3-8%.
The exchange rate applied when making a card payment overseas is the wire transfer selling rate on the date the voucher was purchased from the card company, not on the day of payment. Since voucher purchases may occur 2 to 7 days after the payment date, it is difficult to know the exact amount if the daily exchange rate fluctuates significantly.
Recently, rechargeable cards that are exempt from currency exchange fees have emerged as a trend.
Unlike existing credit cards, Travellog Check Card and Travel Wallet Card allow you to pre-load foreign currencies such as yen and use them for payment when traveling abroad or for withdrawal through an ATM abroad. Simply download the app, verify your bank account, and use it as a physical card.
You can save money because they exchange currency at the standard exchange rate without commission in Japan, the United States, and Europe. However, the recharge limit is limited to 2 million won for Travellog and 1.8 million won for Travel Wallet Card.
Fees are also waived when withdrawing money from an ATM machine. However, separate fees may be charged for each local machine, so check in advance which devices allow free withdrawal.
There are also ways to use various pays operated by Kakao and Naver. In this case, it is easy to use as it can be charged directly in Korean Won and does not require separate currency exchange. It can be used in most department stores, major airports, convenience stores, and pharmacies.
In the case of Kakao Pay, it can be used at places with the ‘Alipay Plus’ logo in Japan. Naver Pay can also be used at affiliated stores that have the ‘Line Pay’ logo.
The travel industry advises that it is a good idea to prepare some cash as there are many places in Japan that do not accept card payments.
A Very Good Travel official said, “Card terminals have become widely available since the coronavirus, but there are still many cases where cards cannot be used in some stores in small Japanese cities.” He added, “Japan is a country where cash is used much more frequently than Korea, so a certain level of cash is a must. “It’s better to exchange money and go,” he said.
He also said, “When exchanging currency, it is best to do it in advance before leaving the country because it is the most expensive at the airport.” He added, “In Japan, there are many places where you can use pay such as Naver Pay or Alipay, so you can save on currency exchange fees by using various pays.” “He advised.
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.