Credit Card Guide #4: Do you really need a card?

Welcome to AccessJ's final installment of our Japanese credit card super series. Now that we have covered the in's and out's of getting a credit card and the application process, lets consider if this whole rigmarole is really worth it.


Read on...

Before getting involved with any sort of financial product, it is always a good idea to step back and think about potential pitfalls and benefits. Like in any other country, Japanese credit card applications are full of fine print and financial minutia. Plus, no one likes going into debt. Let's take a look at some potential pros and cons of getting your own line of credit.


Pros
Online Shopping- While Japanese consumers have been a bit slower to catch on to the Internet shopping wave as compared to other countries, it is still a big deal and only getting bigger. There are many ways to pay for your online goods in Japan (many companies, such as Amazon, offer pay-on-delivery or via a convenience store), but having a credit card will certainly reduce the hassle of paying, give more flexibility in what you can buy, and generally make life easier for the frequent online shopper.



Not Needing Wads of Cash- When I am back home in the USA, I rarely find more than $20 in my wallet at any given time. However, in Japan carrying around 20 times that is a pretty common occurrence. Nevertheless, since credit card terminals are becoming more and more wide spread, having your own card will reduce the potential impact of theft, losing bills, and the dreaded Alcohol-Induced Wallet Displacement Syndrome (AIWDS). Unlike large wads of bills, credit cards can at least be canceled and replaced.


Not Worrying About Currency Rates- As we have discussed previously, you can use your home country credit card just about anywhere domestic cards are accepted. While this will save you the hassle of applying for a Japanese card, it creates all sorts of headaches when trying to figure out currency conversions as well as the potential for incurring large transaction fees.


Travel Abroad- Somewhere down the line, some Japanese bank big-wig thought it would be a great idea to put the bank (ATM) card magnetic stripe on the front of the card, rather than the back. While this may be all quirky and cool, people say it pretty much renders your Japanese bank card useless when overseas. However, Japanese credit cards do have magnetic strips on the back, making them usable at overseas ATMs and shops. If you are a frequent overseas traveler then a Japanese credit card may be a good investment.


Payment Flexibility and Points- When moving into a new place or buying something expensive, it is good to have the option to divide up your payments so you don't totally destroy your bank balance all at once. Plus, like most cards, Japanese companies offer points and rewards in exchange for maintaining your custom at specific stores.


ETC- As we discussed in the previous sections, Japanese credit cards almost always come with a matching Electronic Toll Collection (ETC) card that can be used in any compatible automobile. Not only does this save the hassle of paying at toll gates, but you also get fairly substantial discounts (see our previous article about highway travel) when driving plus the ability to earn points toward free travel. While you can get your own card separate from your credit account if you so desire, the process is a bit complicated and involves putting down a rather hefty deposit.




Cons
Fees- Card issuers aren't in the business of making your life easier for free. Many cards have annual fees ranging from anywhere from 1000 yen to over 10,000 yen. Others might have certain conditions such as signing up for a bank account or charging a certain amount per year. Other card issuers will waive fees only if you utilize revolving credit or divide your total credit line into interest bearing payments. While there are plenty of no-annual-fee cards out there, make sure you do your research or find a Japanese speaker to do it for you.


Money Management- One of the biggest problems with credit cards is the simple fact that when you buy something it doesn't feel like you are spending anything. In absence of forking over cold, hard cash, it is easy to ring up a huge bill. This is by no means unique to Japanese credit cards, but when you just starting to get established in a new country or you are not sure of the cost of living then it is easy to rack up debt fast. Moreover, Japanese credit cards are often payed off in full at the end of the month so you may find your bank account suddenly drained.


Linguistic Barriers- Understanding the terms and conditions of a financial contract is no easy feat, even for native speakers. When getting a credit card, you are agreeing to a whole set of potentially onerous terms as well as putting your credit on the line. Missing payments and the like will ding you credit record, which is especially important for those who one day wish to buy fancy cars and real estate. Moreover, any problems that pop up (fraud, ID theft, etc) will have have to be dealt with in Japanese (with rare exceptions for international banks).




While most of the above info is basic financial common sense, it is worthwhile considering, especially when living in a foreign land. That being said, it is much easier to get by in Japan without a credit card compared to most other countries, and not having to deal with the potential pitfalls of credit finance can be liberating for many. 


Well that concludes our AccessJ super feature on Japanese credit cards! Check back soon for more J-living info and please do post any comments, questions, and/or suggestions.



Other Posts in this Series
Part 1: The Basics
Part 2: Application Pointers
Part 3: Filling Out the Application
Part 4: Do You Really Need a Card?

Credit Card Guide #3: Filling out the Application

In part 3 of our credit card mega series we will be covering the finer points of how to fill out  a model credit card application. 


While it is always good to have a Japanese friend handy, this guide should help you understand the basics of the whole process through example.


Read on...
The model application we are using for this part is a card issued by Aeon Credit Co., a subsidiary of the supermarket company Aeon. While every application is a bit different, there is obviously a lot of cross-over. 


This article is intended to serve as a basic guide; so if you are unsure about exact process of the card you are applying for make sure to ask a friend or do some further investigation. As always, mistakes on an application will result in an awkward phone call and/or a returned form.

Step 1- Which type of card do you want. Some issuers offer a choice of multipe brands while others only offer one. In this case, you can chose from Visa, Master Card, and JCB.


Step 2- This card asks you if you want to sign up to use Aeon's proprietary "waon" e-money/point system. Many cards offer service like this, especially ones issued by retailers. In this case it doesn't cost extra, but make sure you don't end up paying fees for things you don't need.


Step 3- This card gives you the option to set "auto charge" incase you run out of waon money. Presumibly it just charges you after your waon balance drops below a certain level.


Step 4- Singing up for and ETC card. It is a credit card size card you can insert into a car mounted card reader (see more info about that here) in order to get discounts on highway tolls throughout Japan. This add on is usually free of charge and is a good idea if you travel frequently.


Step 5- Singing up for "iD" which is a contact payment system where you simply swipe the card over a reader. This service is found on many credit cards and can also be used with iD compatible mobile phones. This option is also free.


Step 6- Signing up for extras. In this case the credit card is offering a special discount magazine subscription. Card issuers like to try and sell you little extras like insurance and what not so be careful not to sign up for anything you don't need.


Step 7- Your name. The top line is for adding your katakana spelling while the bottom line is for English lettering (or Chinese characters if you have them). Make sure to write your name and katakana exactly as it appears on you ID and bank account.


Step 8- Your date of birth in the Japanese calendar system, known formally as 年号 (nengou). The Japanese date system is based on the length of a given Emperor's reign so it doesn't follow the usual Gregorian calendar system. The main modern eras are  大正 (Taisho), 昭和 (Showa), and 平成 (Heisei) . Check the converter here for exact date conversions.


Step 9- the next two boxes are sex (性別 seibetsu) with 女 (onna) meaning "girl" and 男 (otoku) meaning "boy." To the right of that is a box asking are you married ( 配偶者haigusha) with 有 (yu) being "yes" and 無 (mu) being "no."


Step 10- Pick a four digit pin number that is easy to remember but isn't your birthday or address. Remember this because you will need it to pay at some terminals.


Step 11- Write your name in English characters (even if you have a Chinese character name). This is what appears on your actual card. Don't worry if you can't fit a middle name in, first and last are the ones that count.


Step 12- The number of people in your household (世帯人数 seitai ninzu) excluding yourself.


Step 13- How long you have lived in your current residence ( 居住年数 kyoju nensu) as calculated in years (年 nen ) and months ( ヶ月 ka getsu).


Step 14- Fill in your post code (the boxes on the far left) and address in Japanese characters. If you can't remember it off the top of your head then you need only look as far as your Alien Card or drivers license. The small line above is for the katakana spelling of your address.


Step 15 and 16- Part 15 is your home phone number. Skip it if you don't have one. Part 16 is your mobile phone number.


Step 17- This refers to the type of residence. In this application there are two basic categories including 一戸建て (ikko tate)  or a regular house and 集合住宅 (shugo jutaku)  or unit housing. For regular housing the options are self-owned/owned with family (自己・家族有所 jiko-kazoku yujo), company provided housing (社宅 shataku), public housing  (公営住宅 koei jutaku), or rental (賃貸 chintai). The same options are available for unit housing with the addition of the dormitory option ( 寮 ryo). Pick the number corresponding to your type of housing.


Step 18- This asks if you have a loan or outstanding housing payments. 1 is yes (あり ari) and 2 is no (なし nashi )


Step 19 and 20- The space in section 19 is for your yearly income in increments of 10,000 yen. 5,000,000 would therefore be written as 500 in this case. Step 20 represents outstanding loans, excluding auto and housing. This is also calculated in units of 10,000.


Step 21- This section represents how much "cashing" (see part 1 If this is your first card, we recommend picking the lowest amount (in the case, 300,000 yen).


Step 22- This section is for anyone who is applying for a spouse or family card. Simply fill it in like did in Step 7, including name, katakana, birthdate, sex, and relationship (zokugara 続柄).


Step 23- This section is for ribo-barai (see part 1). Select the monthly payment plan you wish (some cards let you change this later) as well as the option for "all ribo-baraiI" where all payments are automatically done in installments. If you wish to use this, enter 1 ( 利用する riyo suru) or 2 for no (利用しない riyo shinai ).


Step 24- Fill in the number corresponding to your work type. Option 1 is for public employees and company employees ( 会社員 kaisha-in and 公務員 komu-in respectively). Anyone working for JET, City Hall, or a full time private company should pick this. Option 2 is for dispatch workers and part-time workers (派遣 haken and パート・アルバイトpaato/arubaito). Anyone working for a dispatch firm like Interac, Borderlink, etc or non-fulltime hourly work should pick this. Option 3 is for students ( 学生gakusei) and option 4 is for the self employed (自営業jieigyo). Option 5 is for stay-at-home moms or dads (主婦・主夫shufu) and option 6 is for pensioners. Don't forget your student ID if you put down number 3.


Step 25- Fill in the name of your company, dispatch firm or, if you are a student, your school. Don't forget to fill out the katakana reading of your school or company's name as well as the full address of the headquarters or branch that you work at. If you work at a school list your dispatch firm or employment organization (usually city hall). Don't forget to include the telephone number in the line boxes below as well as the type of work you do (事業内容 jigyo naiyo) and your department/assignment (所属・役職 shozoku/yakushoku). Finally, don't forget to put how long you have worked in your given job (勤続年数 kinzoku nensu) in months and years. If you are a stay-at-home mom or dad, write your significant other's work place and if you are self employed, write the address of your business. 


Step 26- This section is only for stay-at-home wives or husbands. The first box on the left asks for your spouse's yearly income in units of 10,000 yen (配偶者年収 haigusha nenshu), the middle asks for how much outstanding credit your have ( クレジット利用残高 kurejitto no riyo zandaka) excluding one time charges but including auto loans, revolving credit payments, shopping loans, etc. The box on the far right asks for the amount of projected credit payments in one year ( レジットの年間支払予定額 kurejitto no nenkan shiharai yotei gaku).


Step 27- This section is for people under 20. If you are a minor, have your guardian fill out their name plus katakana in addition to address and phone number in the box below. Don't forget to circle the relationship status (本人続柄 honnin zokugara), which in this case is parent (親 oya ) or other (その他 sono hoka ). 



Step 28- The final step is entering your bank account information. If you have your bank book with you then most of the information you need will be contained within. The big blue box in the upper left has two options for payment: financial institution (金融機関 kinyu kikan ) or JP Bank (ゆうちょ銀行 yucho ginko  or the former Postal Bank). You only need to fill in one or the other. If you elect for a regular financial institution then you need the bank name, type of financial institution (regular bank, shinyo bank, credit union etc), the branch name, and the type of account (regular or checking). However if you chose a JP Bank account then all you need are the numbers that appear on  your bank card and pass book. The final square on the bottom left is the account holder's name ( 口座名義人 koza meigijini) (not pictured). This particular application asks for the name and telephone number of the applicant in the box in the top right. You will also need your banking inkan (not pictured) which you need to stamp twice in the small dotted circles.




And there you have it, folks. A fully completed card application. While each and every app is different, this should serve a good model. Don't forget to attach a copy of your ID (usually on a separate form) and if you have trouble, try going directly to a shop where they hock credit cards. If you have all the paper work in order they should be more than happy to help.


Well that about covers this section. Stay tuned for our final installment where we cover the pros and cons of getting your own card!



Other Posts in this Series
Part 1: The Basics
Part 2: Application Pointers
Part 3: Filling Out the Application
Part 4: Do You Really Need a Card?

Credit Card Guide #2: Application Pointers

Some of you veteran expats may have heard that getting a credit card as a foreigner is near impossible in Japan. 


Unfortunately that is not too far from the truth. However, there are various ways to increase your chances for approval. 


Read on...


Like any financial product, getting a Japanese credit card requires wading through paperwork. The following are essential:

• A valid resident status in Japan and alien registration card or drivers license
• A Japanese bank account
• An inkan (印鑑), the same one you use for your regular bank account
• Tax forms, salary slips, and/or utility receipts (not required for all applications)
• A student ID from a domestic university or vocational school (if you are a student)

Choosing a Card
Credit cards are becoming standard fare in Japan and just about every major super market, airline, and shopping mall has their own branded card that has all sorts of points, perks, and goodies attached to it. Banks, of course, also offer their own.


Many department stores have tables were you can sign up on the spot (provided you have and ID and inkan) and just about every retailer has card applications on their website. However, if you apply online you will still have to fill out a form from the credit card company and present a valid ID copy.


Pointers for the Application Process
You may have heard horror stories of foreigners getting rejected purely on the basis of their foreignness. Unfortunately, there is a legal precedent in Japan for rejecting foreigners without permanent residence for financial products due to their potential flight risk. Yes, its unfair and it sucks.


When you apply for a credit card, the card issuer will do a credit check. The Japan Credit Information Reference Center Corp acts as a central clearing house for consumer credit data for all big banks and issuers general check this organization first to see if you have outstanding loans, missed payments, or other financial obligations. 


What sort of credit reporting goes on here isn't exactly clear but it only involves your Japanese credit lines, so if you haven't been in Japan long then your shouldn't have any too much to worry about.




Some of the following factors can effect your Japanese credit worthiness:

• Having a home phone number - it may sounds silly but having a home number in addition to a mobile phone is seen as a big plus on credit applications since it indicates you are staying in the same place for a while. And don't try using a Skype number (anything starthng in 05) since the dialing prefix will give it away.

• Living in the same place - almost every application will ask how long you have lived in your current residence and what type of housing it is. People who live in a rental unit and have just hopped off the plane or changed locations are considered bigger credit risks. It pays to settle down for some time before applying for a card.

• Working for a private company/on a short-term contract - many foreigners in Japan who teach at public schools work for hakengaisha (派 遣会社), or dispatch firms like Interac. Japanese financial institutions tend to view this form of employment as a risk since you can be fired essentially at will and you don't have access to the same benefits as contracted company employees. 

• Permanent Residency/Spouse Visas - Those who have PR will have a lot easier time getting credit due to the fact that you are not seen as a flight risk. Plus, if you are married to a national then you can have your wife apply for you and get a family credit card.

Things to avoid when applying:

• Big Banks - Banks in Japan are big credit card issuers but they are very, very conservative with their credit portfolios. Even if you have been banking with them for ages, there is a good chance you could face rejection just based on your foreignness. Try for an independent credit card issuer instead.

• Alien Card - Most foreigners use the Alien Card as the primary form of ID. However, this card contains the length of your residence status in Japan. If you only have a one year visa, this might be considered a turn off to potential issuers. Try using a driver's license, insurance certificate or other valid ID instead.

• Lying - Don't fib on the application. Japanese card issuers often call your house to verify if you live there, as well as your boss to make sure your job and salary information is in order. Some card companies might even ask you to present proof of income like a tax form or salary slip.

• Applying for Multiple Cards in Short Order - Avoid applying for one card after another. Banks can see your past applications and having a lot of rejections and outstanding applications dings your credit eligibility. If rejected, cool your heels and wait for a bit.

• Big Name Cards - Certain cards such as American Express and some department store credit cards cater to wealthy clientele so it is best to avoid them all together. JCB branded cards have a reputation for being much easier to get than Visa and Master Card brands so try them first. 

Finally, if you are a student, don't forget to check and see if your university has a deal with a card issuers. The University Co-op Association seems to have a deal worked out with Mitsui-Sumitomo Card Co. for a student-only credit card that is relatively foreigner friendly. Other card issuers have similar student cards if you have a valid ID. While these are by no means a sure bet, its a good place to start if you are a student.


The whole application process may seem very intimidating but once you know the basics it gets much easier. 


Don't get frustrated if you get rejected a few times and don't let anyone tell you foreigners can't get credit cards here (this author has two already). 

Check back soon for our next installment where we will show you how to fill out a model application. 

Other Posts in this Series
Part 1: The Basics
Part 2: Application Pointers
Part 3: Filling Out the Application
Part 4: Do You Really Need a Card?

Credit Card Guide #1: The Basics

For our next AccessJ super-feature, we will be thoroughly covering the Japanese credit card system. We'll also offer a guide and tips for getting your own Japanese credit card.

Read more for an introduction to the credit card system of Japan.

One of the things that travelers in Japan tend to notice is how many stores outside of major shopping districts do not accept credit cards. While this trend is changing, expect most small shops and eateries to only handle cash. Even then some older credit card terminals have a hard time handling Western debit cards and certain types of international credit cards. 

The Basics

The Japanese credit card system is extremely dissimilar to other developed countries. Credit cards, by default, work a lot like a charge card or debit cards found in the Western world. Basically, you just charge up to a set limit and you are billed for the balance at the end of the month. 

Just about every major credit card brand is available here including Visa, Master Card, and American Express. JCB is also a major brand but it is not often seen outside of Japan (however American Express in the US has a deal to process JCB cards at some terminals and vice-versa). Most stores simply require signatures will while others use a chip-and-pin set up similar to UK credit cards and debit cards.

That being said, there are some important differences that you may come across when trying to apply for and/or use a credit card in Japan. 

Bunkatsu Barai (分割払い)

Bunkatu barai literally means "split up payments" or "installment payments." When using a credit card, be it foreign or domestic, the teller will ask something to the effect of "how many times do you want to divide this?" ("nankai deshou ka?") or "will this be in one payment?" ("ikkatsu wa yoroshi deshou ka?"). If you are using a non Japanese credit card or debit, always answer "one time" ("ikkai " or "ikkatsu") or else your transaction will be rejected. 

Japanese credit cards always include this system of splitting up payments, usually in 2-12 installments. Some credit card issuers have specials where 2-3 installments are interest free but picking up any more installments will incur interest on each payment. Credit card companies will usually have a rate table available on their brochures and websites. 

Ribo Barai (リボ払い)

Ribo Barai is short for "revolving payments" and it resembles something closer to a Western, pay-as-you-go credit system. This option takes your balance for the month and divides it into pre-determined payments plus a finance fee attached to each payment. Like bunkatsu barai, this option only works with cards issued in Japan and only if your card issuer thinks that you are credit worthy enough to not duck out on your payments.

There are two ways of using this system: 

a) punch the ribo barai  button on the credit card terminal or ask the sales person if they can make your purchase ribo barai

b) call up your card issuer or go to their online terminal and request that your remaining balance be split into ribo barai

Kyashingu (キャッシング)

The Japanese take on the English word "cashing," this service is essentially a cash advance or loan. You can take money out at most convenience store or institutional ATMs but expect a hefty interest charge plus possible ATM fees. Some companies require separate applications for domestic kyashingu and international kyashingu.

This service can be handy for withdrawing money overseas where Japanese bank cards are as about as useless as monopoly money. However, when it comes to daily purchases, it is good to avoid unless you want to be up to your eyeballs in debt with heavy interest. Most card issuers give you the option of not signing up for this at all and it is usually a smart move, especially if you are a first time credit card user in Japan.

Multi-Use Cards

Some banks and brokerages offer a single card that combines your bank card and your credit card. They have similar functionality to a stand alone credit card save for the fact that you can use them at ATMs for deposits and withdrawals. Like all credit cards, you have to fill out and application and be approved. Banks may also set certain conditions such as having a certain balance or charging an annual service fee.

Well, that about covers the basics. Stay posted for our next installment where we take a look at getting your very own Japanese credit card!


Other Posts in this Series
Part 1: The Basics
Part 2: Application Pointers
Part 3: Filling Out the Application
Part 4: Do You Really Need a Card?

Post-Earthquake Changes to ETC Prices in Japan

In the wake of the Great East Japan Earthquake and it's enormous toll on government and individuals alike, expressway toll prices (including ETC card prices) are being overhauled in Japan--again. The result is a general increase in the price of automobile travel. We'll explain exactly what changes and how expensive travel will be after the change below.

Click here for our post on how to calculate your highway tolls in advance.

First off, here's what's different:

1. Elimination of the 1000 yen cap on weekend and holiday travel
2. Reinstatement of normal fares on regional stretches of road previously made free by the 高速道路無料化社会実験 ("toll-free expressway trial," or "toll-free expressway social experiment.")
3. Abortion of the proposed 2000 yen cap on weekday travel.

Because of these changes, ETC prices after midnight on July 20, 2011 will be as follows for normal size vehicles (普通車) and light vehicles (軽自動車):

1. Extant weekday discounts will continue to apply.
1. Travel during commuting hours (6:00-9:00 and 17:00-20:00) not exceeding 100 km once per day will still be discounted 50%. It will still be possible to (ab)use multiple ETC cards in a row to get this 50% discount over longer stretches of road.
2. Travel beginning or ending at night (22:00-24:00) will be discounted by 30%.
3. Travel beginning or ending from late night to early morning (0:00-4:00) will be discounted by 50%.
2. Travel on weekends and national holidays will be discounted by 50% all day.

If you happened to have your primary residence in an earthquake-affected region and drive as part of your job (as in, you ship things in a 5,000kg or heavier vehicle), it is also possible to apply for a pass which will allow you to enter and exit the expressway for free from June 20, 2011 until June 19, 2012.

Tokyo says that the extra revenue from this change will go towards helping out post-earthquake recovery efforts.  However, some citizens seem to feel that the earthquake just offered a convenient opportunity for opponents of the travel discounts to pull the plug on them.

As always, we welcome and comments or questions below.

Abbreviations in Furikomi

Take a deep breath... this is dry but useful information.

When making a bank transfer (振込, furikomi) in Japan, information regarding the transfer can only be sent using single-bit (half-width) katakana characters, Latin alphabet letters, numbers, or a small subset of punctuation. When you make a furikomi at a bank or ATM, the system will properly annotate information about the bank and branch you want to transfer to. However, properly entering the beneficiary's name is up to you.

(By the way, spaces are also valid in furikomi data. They count as one character.)

Usually, this is an obvious step: You enter in the name of the beneficiary exactly as he or she has directed you. The katakana used must match the katakana they used for the name on their account exactly, or the furikomi won't go through.

What you may not have known is that there are special abbreviation codes used to accommodate long company names so they fit inside the ATM/furikomi slip's character limit. (In my experience, the limit is often 15 characters.)

For example, if you were in charge of sending a furikomi out to the toy company Bandai, the formal name of the company, 株式会社バンダイ, wouldn't fit within a 15 character limit: ｶﾌﾞｼｷｶﾞｲｼｬﾊﾞﾝﾀﾞｲ

Sixteen characters. Damn. What to do?

The wrong way to handle this situation is to enter as much of the name as you can and truncate the end.

The right way to handle this situation is to use designated account abbreviation codes to eliminate common, long titles, such as 株式会社 (publicly traded stock company). A full list of such abbreviations is available here (Japanese).

In the case of our example, the correct abbreviation for 株式会社 is a simple ｶ. But, the next part of the process is also important. You need to use appropriate delineation to indicate how the abbreviation fits into the title. Because 株式会社 comes at the beginning of Bandai's formal company name, you'd start the name on the transfer out with a ｶ, follow it with an ending parenthesis, then add the rest of the company name, like so: ｶ)ﾊﾞﾝﾀﾞｲ

Similarly, if the 株式会社 bit came at the end of the company name, like in music company Yamaha's name, ヤマハ株式会社, you'd use a beginning parenthesis and a ｶ at the end of the name: ﾔﾏﾊ(ｶ

But, what if the 株式会社 bit comes somewhere in the middle of the name you need to send to? Maybe, in a much more likely example, you're not sending to the company's name as a whole but to a specific department: The account name you're sending to is the general affairs department at Yamaha, ヤマハ株式会社総務部. The answer is fortunately unsurprising: You get to put a parenthesis on each end of the ｶ, to end up with a fantastic ﾔﾏﾊ(ｶ)ｿｳﾑﾌﾞ

OK, so what about when you've used all the reasonable abbreviations for your name, and you still end up with something too long, like this (fictional) general affairs department name at Takeda Pharmaceuticals: 武田薬品工業株式会社総務部. Even after abbreviation, it's still a whopping twenty-two characters: ﾀｹﾀﾞﾔｸﾋﾝｺｳｷﾞｮｳ(ｶ)ｿｳﾑﾌﾞ

In this situation, truncation is the rule of thumb. The bank will match up as much of the beneficiary name you could enter to the actual name on the account and make a decision about whether the transfer is legitimate. If that answer still leaves you feeling queasy, there's a simple but time-consuming way to double check yourself: ATMs at some banks will display the account holder name on their confirmation screens when you try to initiate a furikomi. The account holder name is displayed in single-byte katakana, up to a certain number of characters, just like you'd need to write it in to make a successful transfer. Simply go to such an ATM, start making a cash transfer (where you put money into the ATM to send rather than sending from your bank account), and fill out the beneficiary details up to the confirmation screen. Once you've seen how the name should be written, take a memo, and hit "Cancel" on the ATM so your experimental transfer doesn't actually go through.

GoLloyds: 2000yen International Bank Transfers

...is with GoLloyds Japan (see below for more options). It's also the cheapest I've seen at 2,000yen a time.



GoLloyds is a go-between from Japan to your home-country bank account. You transfer money domestically from your Japanese account to GL, who will then send it to your chosen target. Because it's a domestic transfer initially, it shouldn't cost you anything other than the GL surcharge.

Step-by-step

1. Go to this GoLlyods webpage and download the application form,
2. Send GL a printed copy of the form, along with 
1. a copy of your passport  
2. AND a copy of one of the following (showing your address). Don't forget to copy both sides.
1. your gaijin card
2. health insurance card
3. driving licence
4. inhabitant certificate
3. Write Dominic Beverley as your referrer!

The address is

GoLloyds Registrations
Lloyds TSB Bank plc.
ATT, New Tower (5F)
2-11-7 Akasaka
Minato-ku
Tokyo 107-0052

or

〒１０７-００５２ 東京都港区赤坂２-１１-７ 赤坂ツインタワー新館　５F
ロイズTSB銀行東京支店

It might be worth checking all this information on their website before applying.

Transfering Money

1. GL will send you a letter, in English, with the instructions for how to send money,
2. Take the letter to your bank (any branch is ok) ATM
3. On the ATM, choose the 振込 option (furikomi/bank transfer)
4. Follow the letter's instructions for number input etc
1. Remember that sending after 3pm will use the next day's exchange rates
5. Save your bank details to the ATM when prompted (if you want)
6. Wait 24-36 hours and check your foreign bank

As all banks will, GL skims a little off your money through their exchange rate. It's pretty much the same as anywhere else, but if you're sending a vast amount of cash then you might want to shop around to be sure you're getting the best rate.

More

• Currency website xe.com used to have a good service for this, but it no longer serves Japan.
• CitiBank also offers this service with almost immediate transfer. You don't even need to have an account with them. The charge is 3,500 yen. More info on their site.
• Some people have also reported being able to use a PayPal account linked to two personal bank accounts in different countries; paying into one and withdrawing from another.

Save on Apartment Rent and Deposits

So, we talked a bit about the kinds of fees that factor into the property deposit on a new apartment in Japan. The general conclusion is that it is easy to burn through a lot of money setting yourself up. Here, we introduce some tips to help you save a few of those ichi-man yen notes from the fire.

As we alluded in our last article, one of the first places to start looking to save money is the agent fee, the chuukai tesuuryou (仲介手数料). The trick here is to shop around with agencies until you find one running a sale campaign.

Often, agencies will quietly offer deals like 50% off the 仲介手数料 for everyone or elimination of the 仲介手数料 if you meet a certain demographic, like students or females or young professionals. The campaigns aren't necessarily by company but by shop, so the downtown branch of a company may give you a better deal than the suburb branch of the same company. You won't find out about these campaigns unless you contact shops directly or drive past them and look for campaign signs on the windows.

Once you have found one shop that will offer you a campaign discount, you can use it as leverage to get other shops to give you the same discount. When I looked for an apartment, I found out about a 50% campaign at one local shop, then mentioned the campaign to other shops I visited. I just asked if they would be willing to match the price, and in most cases received very prompt, positive responses.

If you have time (and really, you should give yourself a lot of time for apartment searching), take it slow. Stretch out negotiations over a couple days, even if you've identified the building you like. Ask the agency, a couple times if necessary, "Can't you talk to the landlord again?" "Don't you think you could make this a little cheaper?" "Wouldn't it be possible to cut the shikikin out in exchange for 3,000 yen more per month?" (This last one is a deal I often read in ads, and it is sometimes negotiable even if it is not listed in an ad.)

If your heart is set on a specific building, run its address through Google or search for it on competitors' sites. Properties are usually cross-listed across multiple sites. The landlord just wants it rented, he's not exclusive to Apamanshop or Minimini or whoever else. You shouldn't be exclusive either. Make sure your agent is offering you the best price of the ones listed by different agencies online. One agency may have marked the rent up differently than another. Or, the landlord may have listed it with different shikikin or reikin requirements on different sites.

As soon as you find a better price, call your real estate agent. Keep on top of him (or her)! Even if you have to pester him. Remember, his job is to find you a good apartment. (And he will make bank if you sign on something.) Make it his job to get you the best price on the property, too! Whatever you agree on now will be with you for months or years to come.

Finally, when you sit down at the negotiating table, the agent may talk about other fees that I haven't covered here or in the other guides. Be wary and ask questions about each one. I have been offered things like the "Anshin Life Plan," which was a 30,000 biannual investment claiming to insure me if I lost my key or had a backed up sink. On closer inspection, turns out the "Anshin Life Plan" only covers the cost of someone coming out to the apartment and opening the door or unclogging the leak, and the renter still ends up footing a key replacement or cleanup bill. I was initially told the plan was mandatory for my apartment, but when I expressed doubt about the coverage, the agent made a ten second phone call and came back to pronounce, "We can take it off."

More Navigating of Property Deposits

Several months ago, we outlined some of the major points of the monetary deposits you'll be likely to make when you rent an apartment in Japan. After some more first-hand experience on the matter, we have some more details to add, and in the next post, we'll share some money-saving strategies to use in your apartment hunt.

Furthering the discussion of shikikin (敷金) and reikin (礼金), which we covered in our last article, note that landlords tend to trend their shikikin and reikin habits in different regions and neighborhoods. For example, in one neighborhood, it may be thought standard for an apartment to carry 3 months' shikikin and 1 month's reikin. In another neighborhood just across the city, most properties might carry 1 months' shikikin and 1 month's reikin.

It certainly doesn't mean there aren't exceptions to this rule, and you may run across a no-shikikin, no-reikin property right beside a 3-months', 3-months' monster. It's just worth considering how certain regions or neighborhoods seem to run in trends.

Outside of shikikin and reikin, there are a bunch of other fees that factor in to the final property deposit. You will probably be asked to pay chuukai tesuuryou (仲介手数料). This is a cut of money given to the real estate agent for showing you around, processing paperwork, and contacting the building owner on your behalf. Even if you find the apartment online yourself and just contact the agent to make a purchase, you will be charged this amount.

Each agency has its own 仲介手数料 policy. For some, it is a flat rate for every contract. Minimini charges, I hear, 40,000 yen no matter what property you decide on. Apamanshop is said to be more expensive, around 70,000 yen. For other agencies, 仲介手数料 is based on your monthly rent. For example, if your apartment will be 55,000 yen per month, the 仲介手数料 will be 55,000 yen. (And often, the agent will ask you to pay tax on that amount to boot.)

However, you have more bargaining power here than an agent will let on--check out our next article for money-saving tips.

Anyway, after that, you'll be charged for fire insurance, or kasai hoken (火災保険). This is often mandated by the municipality in which you live and unavoidable. It is a yearly charge running around, in my experience, the 10,000 yen mark in big cities.

Next, recently landlords require renters to have guarantor company insurance, hoshou gaisha hoken (保証会社保険). I had heard of guarantor companies before, in the sense that they are available for people who cannot provide a guarantor (i.e., a financially established Japanese citizen) when they look at apartments.

However, this hoshou gaisha hoken is different. Even after you provide a legitimate guarantor, landlords are asking for you to buy insurance just in case you default on your rent payments. In essence, you are paying a company to follow up on you if you don't pay your rent on time. (Ridiculous.)

If your agent has personal connections with the landlord, it is possible he can ask for this insurance to be waived. But, I was told in my search that some 80 to 90% of rental properties have over the last couple years begun requiring this guarantor company insurance.

Anyway, the hoshou gaisha hoken cost depends on which insurance agency is used. Some of them charge a lump sum on signup and no additional payments later, and others charge annually. The price is based on your rent. In examples I saw, a 50,000 yen per month apartment cost 20,000 yen the first year and 10,000 yen each subsequent year to insure. It scaled to 30,000 yen the first year (and 10,000 yen each subsequent year) on an apartment that cost 60,000 yen per month.

Finally, on your upfront costs the landlord is going to ask you to pay through the first full month's rent in advance. This means that if you start renting an apartment for a portion of a month (with a move-in date of, say, January 15), the agent will ask you to send the rent for January 16-31 as well as all of February's rent at the time of contract.

All in all, when playing the new apartment game, you may want as much as six months' worth of the monthly rent available, on-hand in order to meet the down payment on your apartment. Yes, I understand what an astronomical figure this is. Older apartments and apartments in less pristine condition will require less set-up money because of lower monthly rent and smaller shikikin and reikin deposits. And, as our next article shows, it may be possible to sneak out of some of that obnoxious chuukai tesuuryou money.

After you have hammered out the initial payment, read the contract carefully for other fees. Sometimes a landlord will request a "renewal fee" in which you have to pay some 10,000 yen to "renew" your apartment contract each year. Sometimes the renter will get pegged with the cost of changing locks on the apartment building when they leave. There are lots of ways to hide additional fees, and you need to check the contract carefully to know what you're getting in to.

Some alternatives to this kind of set-up money are monthly apartment companies like Leopalace. However, be very careful about contracts for monthly apartments. Often they will draw renters in with promises of "no shikikin" only to charge you a "cleaning fee" when you move out of the apartment: You end up paying shikikin, you just pay it at the end of your rental period and under a different name.

If you have any comments or experiences to share, please leave them in the comments below. I hope this article was helpful, and keep an eye out for next week's post on saving money in the apartment search game.

Highway Tolls Cheaper for 2011

Starting in April, 2011, highway drivers in Japan can rejoice. The Ministry of Transport* announced last month its new toll policy for use of the country's national superhighway system (高速道路). Pretty much everything, unless you are a professional trucker, gets cheaper.
*(that is, "The Ministry of Land, Infrastructure, Transport and Tourism")

Let's take a look how:

Until now, tolls on the superhighway system have been calculated by distance traveled, and there has been a fairly long list of targeted discounts that drivers can use to reduce their toll. The most widely known discount is the 休日上限, which caps a single trip's toll at 1000 yen on weekends and national holidays. But, other discounts, such as commuter discounts (50% off distances under 100 km during commuting hours on weekdays) and late night/early morning discounts (50% off all travel commenced or finished between 10 p.m. and 6 a.m.), have also been automatically applied to relevant tolls. Until now, these discounts have only applied to ETC system users.

From April, 2011, however, this system will change dramatically for individual drivers. The 休日上限 will remain, capping all weekend and holiday travel at 1000 yen. In place of all other discounts, however, a new weekday discount (平日割引) will be used, which caps all travel during a weekday depending on the size of your vehicle. Normal "white plate" cars will be capped at 2000 yen per use of the highway. Smaller "yellow plate" cars and cars designated as eco cars, such as hybrids and electric vehicles, will be capped at 1000 yen per use of the highway. Furthermore, these weekday discounts will apply to all cars, regardless of whether they are using ETC or paying with cash.


The weekend discount, however, will continue to apply only to cars equipped with an ETC reader, and herein lies the loophole that continues to make ETC worthwhile to own: Cars who travel on weekends and pay in cash are still subject to the entire regular toll based on the distance they traveled without any caps or discounts.

So, that covers the bulk of it. There are some further details regarding specific superhighway lines and toll roads which are not part of the 高速道路 network. (For example, use of the Tokyo Aqua Line, a bridge-tunnel between central Tokyo and rural Chiba, is subject to its own fare system.) To check out all the other details, check out this Car Watch link (Japanese) for a simple run down or this exhaustive, mind-boggling PDF press release from the Ministry of blah, blah, Transport and blah (also Japanese) for complete explanations of all changes across the country and rationalization for said changes.

(By the way, former discount systems, such as the commuter discount and late night/early morning discount, will continue to exist and apply to commercial drivers. So, if you are a professional driver in Japan, pretty much nothing changes for you in April.)

How Much Will I Get Paid Teaching English in Japan?

Good to read and compare to this entry about living costs.

Japan is reportedly the second highest paying country for English teachers (just behind Brunei).

And in reality, if you can find a job at all at the moment, you can expect to get Japan's standard (and pretty good) starting wages. However, that's a full time position - one which is becoming rarer by the minute.

A future blog will address the requirements for teaching in Japan (usually only a degree in any subject), and another already published one gives further tips on finding a job, but for now let's take a look at what the current ALT employment situation is in regards to MONEY.

• Standard wage is around 250,000yen per month (1900GBP/3100USD at the time of writing, but you will need to check it for a realistic figure).You will get this amount, or just above, if you are employed on a full time contract with a company such as Interac, Westgate, AEON, Berlitz or any of the other big-hitters or private schools. Many conversation schools, for example Gaba, will also offer overtime/experience incentives in their pay packets.
  
• The JET program is run in partnership with the Japanese government and will pay a little extra - up around 300,000. This applies to all the positions they offer - SEA, CIR etc.
  
• Employment with a local government is very desireable and will pay about the same or a little more than the JET program. These jobs are hard to come by, however, and you will probably face some tough competition. Expect to only find these jobs if already in Japan and/or with good Japanese.
  
• Many schools advertise online for English teachers. But remember that a lot of the part-time or pay-by-hour options may lack security or may not earn a liveable wage if you're going solo. Here are some links to investigate by yourself:
• findjobsinjapan.com
• jobs.gaijinpot.com
• jobs.japantimes.com
• careercross.com
• jobsinjapan.com
• daijob.com

All of these sites also have listings for other types of jobs, so if you have any other skill you may want to consult those listings for posts with your level of Japanese (there are several that require no Japanese, such as some IT work).

So there you have it - use the links in this post to find yourself a wonderful job and then come back to this site and make a generous donatation!

If you have any hints on finding jobs then let us know in the comments below.