If you have an experience of sending money abroad through a bank, you may have heard of the term "SWIFT."

SWIFT is a system used with international money transfers through banks, but not many people know how it actually functions.

This article will explain in detail how SWIFT is used for international money transfers and the points to note when using it.

We will also look at the differences from online international money transfer services, as well as recommended money transfer methods depending on the amount. We hope this will help you find the money transfer method that best suits the situation.

If you have plans to send money abroad, take this opportunity to learn the correct knowledge and prepare for a secure and cost-effective procedure!

The System of SWIFT Money Transfer

SWIFT (Society for Worldwide Interbank Financial Telecommunication) is an interbank network of which banks worldwide are members. The network operates as a platform for international money transfers.

Partnered with more than 200 countries and regions around the world, SWIFT was originally established in 1973 as a cooperative network to facilitate smooth remittance procedures between banks for foreign currency transactions, such as trades between countries.

Member banks send and receive information such as bank account numbers and names as electronic messages to each other in order to facilitate international money transfers. As long as the originating and receiving banks are both members, it can offer users a secure international money transfer at any time.

With SWIFT, the remittance does not go directly between the originating bank and the receiving bank but goes through multiple banks before reaching the destination. These banks are called intermediary banks or correspondent banks.

The relay bank and receiving bank receive an electronic message from the originating bank, and the procedures are carried out according to the payment instructions in the order of the originating bank, relay bank(s), and the receiving bank.

The number of relay banks changes depending on the case. The more relay banks the transaction involves, the more time and fees are required, possibly resulting in a longer processing time or higher fees.

Points to Note about International Money Transfers Using SWIFT

International money transfers through banks are required to use the SWIFT network. For this reason, SWIFT is practically the exclusive channel for bank remittances.

When using SWIFT for money transfers, there are a few points to keep in mind.

In this section, we will introduce some of the points users should be aware of.

Point 1: Fees tend to be high

In many cases, the fees incurred for international money transfers are higher when using SWIFT.

In addition to the relatively high fees set by the sending bank, the most important thing to keep in mind is the fees charged by the relay bank(s).

In a bank transfer, the procedure does not proceed directly to the receiving bank, but rather through a number of banks before reaching the receiving bank. These relay banks are also members of SWIFT, and the more banks that are involved in the transaction, the more fees will be incurred.

Since the route for international money transfers via SWIFT is determined after the procedure is completed, the number of relay banks cannot be known in advance. This may result in higher fees than expected, so be sure to take it into consideration when setting the budget.

Point 2: Long time to complete the procedure

International money transfers via SWIFT require a certain period of time to complete the transaction.

Because the transactions are conducted with relay banks and receiving banks across national borders, money cannot be transferred as quickly as domestic bank transfers.

In general, international money transfers using the SWIFT network often take 5 to 7 days to complete the process.

Although money transfers using SWIFT are reliable and secure, there is a disadvantage in that they cannot be processed quickly if an urgent money transfer is required.

Point 3: A bank account is required

To send money abroad using SWIFT, users need to have an account at the originating bank where the money transfer is processed.

Bank transfers use the money that is already in the account. If you do not already have a bank account, the procedure will take extra time to open one first.

In addition to opening an account, users must also submit identification documents specified by each financial institution when sending money internationally. We advise checking the official website of each service in advance for specific required documents and the flow of procedures.

Why are Fees Higher for SWIFT Transfers?

One of the main reasons for the high fees incurred with SWIFT transfers is that it involves relay banks, also known as correspondent banks.

In this section, we will take a further look at relay banks, which is essential to bank transfers, and the fees.

Types of Fees Incurred for SWIFT Transfers

SWIFT has more types of fees compared to other online international money transfer services. The following table shows examples of fees incurred for SWIFT money transfers.

Receiving fees and relay bank fees, in particular, are fees that are unique to bank transfers.

Since these two fees are incurred on the SWIFT network, they do not apply to remittances through international money transfer services, which do not use the network.

While SWIFT makes international money transfers more secure and reliable, it is important to understand in advance that more fees will be charged with it.

Fees Charged by Relay Banks (Correspondent Banks)

A relay bank (correspondent bank) is a bank that acts as an intermediary between the originating bank and the receiving bank when making an international money transfer. Relay banks are contracted on the SWIFT network, and only go through it for international money transfers using SWIFT.

Of course, a fee is charged when a transfer goes through a relay bank. Each relay bank's fee is charged to the user through the bank from which the money is sent.

In addition, the number of relay banks is not limited to one, and in some cases, money is sent through multiple financial institutions. The more relay banks there are, the more fees are charged. As a result, fees with bank transfers are often higher.

The number of relay banks involved in the transaction are determined by the originating bank, not the sender.

The remittance route also varies depending on the time of year and location. When making a bank transfer, it is necessary to take the relay bank fees into consideration before deciding on the amount of transfer.

Why SWIFT is Used for International Money Transfers Through Banks

So, why do banks use the SWIFT network for international money transfers despite high fees?

The following are some of the reasons.

• It is a global standard system
• It is a highly secure network
• Many countries and regions are supported
• It is a network with a long history.
  

First of all, SWIFT is adopted as the global standard network system. Since currency transactions are conducted between countries, it is very important to use a global standard network in order to facilitate smooth transactions.

Another reason why SWIFT is chosen is that it is a network using banks as credit institutions, which ensures security.

Money transfers between organizations and countries tend to involve huge sums of money. Therefore, it is important that the transaction is conducted through a network with guaranteed security.

SWIFT transactions use electronic messaging, assuring high security because they are traceable in the event of a problem, as they keep a history.

Due to this high security and global standard, banks in more than 200 countries are members of SWIFT.

The more member banks there are, the more countries they can support transaction to, which means that banks can easily use SWIFT for international money transfers in many countries.

Furthermore, SWIFT is a network with a history of over 40 years. The extremely high level of security and reliability is a great advantage, but the fact that the old-fashioned system is still in place means that fees are high, which can also be an issue.

International Money Transfers Other Than SWIFT

In addition to money transfers via SWIFT, there are online international money transfer services that use online electronic payments.

Online international money transfer services are highly convenient as they allow transfers to be made through an online-based procedure. Since there are no relay bank fees or receiving fees, the fees can be kept low.

Online money transfers mainly use two types of methods:

P2P Money Transfer

A remittance method in which transactions are made directly between peers (peer to peer) or between individuals (person to person). There is no intermediary, which allows users to send money directly to the recipient on the app.

Online Money Transfer

A method that uses a service to send money overseas via the Internet. The amount of money to be transferred to a designated recipient is specified, and the necessary fees are paid to the service provider. All procedures can be completed online.

Online international money transfer services are highly convenient as they allow users to complete the payment with a smartphone. Due to this convenience, the number of users has been increasing rapidly in recent years. In addition, some services have been approved by government agencies, providing users with a highly secure money transfer service.

Is it Possible to Send Money Internationally without a Bank Account?

While international money transfers via banks require a bank account, online international money transfer services allow users to send money internationally without having a bank account.

Some online international money transfer services allow you to link your debit or credit card to the service, making it possible to send money via credit card payment.

In general, bank transfers require users to have an account and to have completed the identification verification procedures. With online international money transfer services, a debit card is usually enough to complete the transaction.

If you have an urgent need of sending money abroad, an international money transfer service would be very convenient because it saves the trouble of having to go through the procedures.

Comparison of SWIFT and Online International Money Transfer Services

So, which service is more recommended for international money transfers?

In this section, we will compare the two types of services, SWIFT and online international money transfer, in terms of cost, speed, and security.

Cost, Speed, and Security

In terms of cost, online international money transfer services have lower fees and are more economical. SWIFT money transfers inevitably incur many types of fees, and furthermore, the fees are set high, so they are not the most recommended method if your priority is to keep the cost low.

Also for speed, online international money transfer services are quick, while SWIFT transfers take 5 to 7 days to complete as they go through relay banks.

On the other hand, in many cases, online services complete the procedure within the same day or two business days, making it possible to complete the procedure smoothly even upon urgent needs.

Then, what about security?

When it comes to security, SWIFT, which is operated as a global standard network, has the advantage.

SWIFT is a globally recognized money transfer platform operated by banks, so it has a high level of social credibility and is highly safe from the perspective of protecting personal information.

Nevertheless, there are also some online services that are government-approved and highly secure.

In the past, when online international money transfer services did not exist, the only way to send money was through the SWIFT network.

Many countries and large companies still use SWIFT transfers today as a result of this, but it is also due to the large transaction amount, often being around a hundred million yen at a time.

Now that online international money transfer services have spread thanks to the development of information technology, international transfers via online services are also very safe and secure for individuals or small and medium-sized companies.

SWIFT Transfers are More Suitable for High-Value Transactions

Since SWIFT transfers were originally created as a remittance network for use between banks in different countries, they are more suited to high value transactions exceeding tens of millions of yen than small value transactions of a few thousand yen to several million yen between individuals.

The detailed screening and procedures with SWIFT transfers are designed to be time-consuming and costly because of the transaction value of tens or hundreds of millions of dollars.

Therefore, for users who only need to send money between individuals for living expenses, etc, online money transfer services are more suitable. Not only are they more convenient than bank transfers, but they also have a good security, offering users a smooth and safe procedure.

Curfex is Recommended for Individual Transactions

If you are looking for an international money transfer service with both cost-effectiveness and security, we highly recommend using Curfex.

Curfex is an online international money transfer service with over 6 billion yen in transactions each month, supporting transactions to 48 countries worldwide.

One of its major features is its low fees. While general financial institutions often set their own exchange rates by adding a commission to the market exchange rate, Curfex uses the mid-market rate, which is the market rate as it is. Users do not have to worry about paying more fees than necessary.

Furthermore, it currently offers a fee waiver campaign for the first transfer, which is highly advantageous for those who want to keep costs down.

Curfex is also a highly secure money transfer service that is certified as a money transfer agent by the Japanese government and approved by the Financial Services Agency (FSA).

Even in the unlikely event of a default on the side of Curfex, users can rest assured that their money will be returned because the deposit is held with the FSA.

The following is an overview of Curfex's cost aspects and the number of days required for money transfer.

Comparison of SWIFT and Online International Money Transfer Service

In this section, we will demonstrate the difference in fees between SWIFT and Curfex, an online money transfer service.

We will look at the difference in the amount of money received when sending the same amount of money to the U.S. using SMBC and Curfex.

*SMBC fees are calculated based on e-Trade fees. Lifting charges or currency exchange fees for yen may be incurred separately.

Curfex has a limit of 1 million yen per transfer, so amounts exceeding that limit must be sent in multiple transfers. For users who need to send more than 1 million yen at a time, banks may be able to complete the procedure more smoothly.

On the other hand, if the remittance is less than 1 million yen, the recipient can receive a higher amount and save fees with Curfex. Although it will be a hassle, you will save more from transferring with curfex. So for budget or cheaper option can go with curfex. If those who need smoother procedures can go with SMBC.

Although it may not seem like a large amount by itself, fees can add up to a large payment in the end.

If the transfer is less than 1 million yen at a time, we confidently recommend using Curfex for international money transfers.

Use Curfex for Smooth Money Transfers at a Low Fee!

While bank transfers using the SWIFT network are highly reliable, there are also disadvantages such as high fees and slow speed that comes with its old-fashioned transfer method.

Online international money transfer services, in contrast, have been increasing rapidly in popularity in recent years. In particular, Curfex is a highly secure online service that has been approved by the Financial Services Agency with its major feature of low transfer fees.

It also offers a fee waiver campaign for the first time transfer, allowing users to greatly reduce costs.

If you are planning to send money internationally for personal use, or if you are considering sending up to 1 million yen at a time, we highly recommend using Curfex.

Click here to sign up

https://remit.curfex.com/en

References:
https://docs.google.com/presentation/d/1hpKREyPKKT2jgxL7fbADg-x61HxYmugse840aDHZHhU/edit#slide=id.g1d54cf69904_0_46

Are you planning on studying abroad sometime soon?

Are you worried that you might have missed something in your preparations?

If you have plans of studying abroad, you are probably excited about living in a new country, but you may also feel worried about preparations.

Especially if it is your first time traveling abroad, you may be too busy with passport preparations, packing, etc, and have no time for being excited.

One thing that many people tend to put off is the preparation for international money transfers.

Even if they have plans to receive money from family and friends living in Japan, many people put off the account setup because they can complete the process easily after moving to the country.

However, international transfers require complex procedures, such as identification, which must be completed in advance. If you fail to complete the account setup while in Japan, you will not be able to send money when you wish to.

In this article, we will introduce international money transfer services that are recommended to use while studying abroad. Make sure to create an account before leaving Japan so that you are prepared to send and receive money anytime.

When International Money Transfers are Needed While Studying Abroad

What are some situations where you will need money transfers while studying abroad?

In this section, we will introduce some examples based on people’s experiences.

When Receiving Living Expenses from Family

If you wish to receive living expenses from your family on a regular basis, you will likely use international money transfers.

For a long-term stay over several months, it is more common to receive a fixed amount of monthly living expenses from family members rather than receiving a lump sum in advance.

However, it is a surprisingly common mistake to forget to complete the setup beforehand and realize that you are not prepared to receive money a month into studying abroad. You would be in a very difficult situation where you will not be able to receive money until an account is set up.

If you plan to have living expenses sent to your study abroad destination, be sure to open an international money transfer account beforehand.

When Purchasing Additional Study Materials

The second case is when you need to purchase additional study materials at your overseas study destination.

In addition to the previously planned expenses, you may need to purchase additional study materials at the school in your study abroad destination.

Such unexpected expenses can cause you to run out of money and end up borrowing some from a local friend. Having an international money transfer account that allows you to exchange money between you and your family helps you avoid such inconveniences as well.

When You Lost Money Due to Unexpected Troubles

The last possible situation is when you encounter unexpected money-related problems, such as losing your wallet.

When living abroad, it is important to be prepared for unexpected problems, such as losing your wallet or having your belongings stolen. If you are a tourist and are not familiar with the local language, you may also be seen as an easy target for a scam.

Some students who studied abroad have experienced such problems as being pickpocketed on a train and having to live in poverty until they managed to open an international money transfer account.

Even if you believe you have enough money to live, there will always be unexpected problems when living abroad. It is essential to plan and be prepared financially for such situations.

Types of Costs Incurred When Sending Money Overseas

So, what types of costs are incurred when using international money transfers? In addition to monetary costs, we will also discuss time costs in this section.

Remittance Fee

Remittance fee refers to the fees incurred by the bank or financial institution that handles your international money transfer. The amount defers depending on the institution, so it is a cost that users can minimize as much as possible.

Currency Exchange Fee

A currency exchange fee is charged when converting the currency of the original country to the currency of the destination country for international money transfers.

International money transfers are usually based on exchange rates, but many financial institutions set their own exchange rates by adding fees to the market exchange rate.

There are also services that use the market rate without additional fees. If you want to keep costs down, we recommend choosing one of them.

Relay Bank Fees

A relay fee is incurred when you choose to send money overseas through a bank.

When a bank sends money to another bank abroad, the money is transferred through several banks. These banks are called "relay banks," and "relay bank fees" refers to the fees charged by each of them.

International money transfer services do not charge these fees, so you can reduce the cost if you choose to send money using one of them.

Receiving bank fees

Similarly, receiving bank fees are also incurred limitedly for international money transfers handled by banks.

This refers to the fee charged by the receiving bank when the money passes through the sending bank and the relay bank to the receiving bank. Like relay bank fees, this fee is not charged with international money transfer services, so users can reduce this cost by choosing one of them.

Remittance Time

In addition to the monetary costs listed above, there are also time costs, such as the remittance time.

Remittance time is the duration it takes from the time the procedure is completed to the time the remittance is sent. Smoother and quicker procedures are more desirable because services that require fewer days to complete the transfer will reduce time costs.

Generally, it is said that it takes 5 to 7 business days to transfer money from a bank, while international money transfer services can complete the transaction in about 3 business days.

5 Popular International Money Transfer Services for Studying Abroad

In this section, we will introduce five services that are popularly used for international money transfers by students studying abroad. We hope it will help you sort out the characteristics and advantages of each service.

Wise

Wise is an international money transfer service that began operations in Japan in 2016 and now supports transactions to 77 countries. Since it handles transactions to a variety of countries in different currencies, it is unlikely to experience problems even if you are planning to study in a place that is relatively uncommon.

Another reason for Wise’s popularity is its smartphone app, which allows users to send money without opening their computers or visiting the bank.

The service charges a fixed fee depending on the destination country, but the cost of relay bank fees and receiving bank fees can be reduced. The exchange rate is also based on the market rate, suggesting that they offer transparent information with no “hidden fees.”

The remittance is also speedy, usually completed within the same day to two business days.

Rakuten Bank

Rakuten Bank is an online bank operated by Rakuten. Since it is online, it does not require users to visit the office to make a transfer.

Since it is a bank, transfers with Rakuten Bank cost relay bank fees and a receiving bank fee. Nevertheless, the service gains a reputation for its relatively low fees among bank remittance services.

Another advantage of using a bank is that it has high credibility as a national credit institution.

Combined with the easy account opening process, Rakuten bank is recommended for those who prioritize credibility.

The transaction also has a speedy bank remittance, usually taking from one to three business days.

Japan Post Bank (Yuucho Direct)

In addition to international money transfer services over the counter, Japan Post also accepts international money transfers through an online banking service known as Yucho Direct.

The biggest attraction of Yucho Direct is that it allows users to complete the trusted procedures of Japan Post from the comfort of their homes.

If you have been using Japan Post's international money transfer service and are already familiar with its system, you may be able to achieve smoother international money transfers by using Yuucho Direct.

In addition to the remittance fee, Yucho Direct incurs more fees than most services, such as currency exchange fees, relay bank fees, and receiving bank fees.

Transactions usually take about four business days to be completed. We recommend that you complete the procedure one week in advance to ensure the remittance is on time.

SBI Remit

SBI Remit is an international money transfer service that supports transactions in over 200 countries.

Due to the availability of many destinations, this service is popularly used by many international students and business people who travel around the world.

Since it is an international money transfer service, there are no relay bank fees or receiving bank fees.

However, this service uses its own exchange rate, which means users have to pay the fee that occurs there.

The remittance can be completed within 10 minutes at the earliest, and within 2 business days at the latest, allowing a speedy transaction.

Curfex

Curfex is an international money transfer service that allows transactions to 50 countries, with a growing number of users in Japan in recent years.

Characterized by its low remittance fee and speedy service, Curfex is currently running a fee waiver campaign for first transfers, allowing users to complete their first transaction with no fees. The fee after the second time is also low and flat at 1% of the amount transferred.

The exchange rate is the same as the market rate, and there are no “hidden fees,” so this service is highly regarded as a user-friendly service that does not charge more than necessary.

Another attractive feature of Curfex is that it allows for speedy transactions, with remittance times ranging from the same day to within two business days. As a money transfer company licensed by the Financial Services Agency, users can rest assured that their money will be transferred even in the event of a default on the company’s end.

Although it may not be as well known as other services, Curfex is an international money transfer service that is attracting a lot of attention for its security and low fees.

Summary of Each Service

The table below compares the fees for each of the international money transfer services introduced above. Use it as a reference for choosing a service when sending money to another country.

Recommended International Money Transfer Service by Destination Country

Some services charge a flat fee no matter where the money is sent, while other services charge different fees depending on the destination country.

The remittance time also tends to vary depending on the destination country, so it is important to check the cost in advance.

In this section, we will look into the difference depending on the destination, using several countries as examples.

Money Transfers to Korea

If the remittance destination is Korea, how would the processing time and fees be for each international money transfer service and financial institution?

Visit the link below to find a comparison of not only the international money transfer services listed above but also services commonly used in the country.

https://curfex.ghost.io/international-money-transfer-service-comparison-for-korea-en/

Money Transfers to the U.S.

The article below compares the processing time and fees for international money transfer services in this country, as well as some other commonly used international money transfer methods for sending money to the U.S.

https://curfex.ghost.io/money-transfers-japan-us-basic-knowledge-en/

Money Transfers to China

Visit the article below to check the simulation of the processing time and fees with the international money transfer services listed, as well as some other commonly used international money transfer methods for sending money to China.

https://curfex.ghost.io/transferring-money-family-friends-china-en/

Money Transfers to Germany

Visit the article below to check the simulation of the processing time and fees with the international money transfer services listed, as well as some other commonly used international money transfer methods for sending money to Germany.

Money Transfers to the U.K.

Visit the article below to check the simulation of the processing time and fees with the international money transfer services liste, as well as some other commonly used international money transfer methods for sending money to the U.K.

Prepare for International Money Transfers Before Studying Abroad!

Despite its essentiality, many people tend to put off the preparation of international money transfers when studying abroad.

While many assume that receiving money abroad would be as smooth as domestic money transfers, international money transfers are a complex process that requires prior identity verification and security checks.

It is very important to prepare beforehand because once in the country, it is common to be so busy getting used to the new lifestyle that you do not have time for such procedures.

Among the international money transfer services introduced in this article, Curfex is especially recommended for those who are planning to study abroad.

If you sign up with Curfex now and use the fee-waiver campaign, you can complete your first transfer at no charge. In addition, the transfer is very speedy, allowing you to send and receive money even upon urgent needs.

If you plan to study abroad soon, we highly recommend signing up with Curfex now and being ready for your first-time transfer at no charge!

Click here to sign up

https://remit.curfex.com/en

References:
https://www.remit.co.jp/kaigaisoukin/sendremittance/
https://ires.remit.co.jp/IRESWeb/MainCommissionSimulator_Input.jsf
https://www.remit.co.jp/kaigaisoukin/exchangeratecommission/commission/

An international money transfer service is a convenient means of sending money to family and friends living abroad.

While bank transfers have long been the mainstream means for money transfers, they can be completed easily nowadays using a smartphone. Also, the popularity of international money transfer services is rapidly growing.

In this article, we will introduce two international money transfer services: Wise, a well-known service, and Curfex, which shows a rapid increase in its user number.

We will provide an overview of Wise and Curfex's services and features, as well as a thorough comparison. After reading this article, you will know which service has lower fees, and what users say about both services!

Service Overview: Wise (Formerly TransferWise)

First, we will look at an overview of Wise's international money transfer service.

Wise is an international money transfer service that started operation in Japan in 2016. Formerly known as "TransferWise," it changed its name to "Wise" in 2021 and now has over 10 million users.

Wise is characterized by the number of currencies and countries it supports. Transactions are available for 52 currencies, including major ones with a large number of users, such as the US dollar and the Korean won.

In addition, remittances can be made to 77 countries, making it convenient for users who visit multiple countries on business trips, volunteer activities, etc.

Wise also holds a qualification as a money transfer agent as stipulated by the Japanese government for its international money transfer business. Since it is approved by the government, there is no need to worry about fraudulent activities, assuring users' peace of mind.

Service Overview: Curfex

Next, we will look at the basic information about Curfex's international money transfer service.

Curfex is an international money transfer service established in 2015 and has over 6 billion yen in monthly transactions worldwide. The company was originally established with its headquarters in Hong Kong, but later established a Japanese subsidiary, and now has a growing number of Japanese users.

One of the main features of Curfex is its significantly low remittance fees.

Generally, financial institutions and money transfer services set their own exchange rates by adding fees to the market exchange rate. Curfex, on the other hand, uses the mid-market rate, which is the actual exchange rate in the market, so there are no additional fees.

Curfex also holds a license as a money transfer agent as stipulated by the government, and has approval from the Financial Services Agency. Even in the event of a default on the end of Curfex, users can rest assured that their money will be transferred as the FSA holds a deposit. The guaranteed safety and reliability are also key features of Curfex.

Wise and Curfex: Comparison by Feature

Now that we have given an overview for both services, we will now look into features that would help you choose one.

The list below shows the key factors when comparing international money transfer services. Please use it as a reference to compare the service details of Wise and Curfex.

Fees

As for fees, both Wise and Curfex are characterized by low fees among services that provide international money transfers.

The following are the types of fees typically charged for international money transfers.

If you use a bank for your international money transfer, these four fees will be charged with each transaction. On the other hand, in many cases, international money transfer services only charge a remittance fee and a currency exchange fee, and the receiving fee and relay bank fees, which are unique to bank remittances, will not be incurred.

In addition, Wise and Curfex do not set any additional fees on top of the exchange rate, so only the actual transfer fee is charged, making the process very economical.

With Wise, a fixed fee is charged depending on the country to which the money is sent. Curfex does not charge a fee for the first transfer, and the fee after the second time is low at 1% of the amount transferred.

If you want to keep the fees low, Curfex would be an easy option. On the other hand, if you plan to make repeated transfers to countries with low fixed fees, you would not have inconvenience with Wise.

Processing Time

The second factor to be considered is the processing time.

Processing time refers to the number of days it takes to complete the international money transfer after the procedure is completed. If you need to send money urgently, you probably want to choose a service with as short as possible processing time.

Comparing bank transfers and international money transfer services, by far, international money transfer services require less time. While bank transfers generally take 5 to 7 days to send money, most international money transfer services take around 3 days.

So how long does it take to complete a transfer with Wise and Curfex?

Both Wise and Curfex are known to be very speedy, either on the same day or within one to two business days.

Although the processing time varies slightly depending on the country and currency used, in most cases, both services are completed within two business days.

There is no significant difference in the processing time between Wise and Curfex, and both are excellent international money transfer services that provide a speedy response.

Exchange Rate

Next, we will look at the exchange rate.

In most cases, when proceeding with international remittance procedures, many financial institutions and services set their own exchange rates by adding a fee on top of the market exchange rate. Many users assume that the amount is the same for all services, but the rate varies from service to service. In some cases causing a significant difference in the total fee, which is why they are known as "hidden fees.”

Wise and Curfex are free of these "hidden fees", as they both adopt the market exchange rate as it is and do not add their own fees.

If you wish to avoid "hidden fees" included in the service’s original exchange rate, both Wise and Curfex would be ideal options.

Campaigns/Discounts

The fourth criterion is the availability of campaigns and discounts.

Some international money transfer services offer limited time offers or first-time-only offers.

If you need to transfer money anyway, why not take advantage of this benefit with your transaction?

As of 2022, Wise does not offer any special offers, but Curfex offers a first-time-only offer: a fee waiver for the first-time international money transfer.

Curfex usually charges a fee of 1% of the amount transferred, so for example, if you send 100,000 yen, the fee of 1,000 yen will be waived.

If you plan to make several separate transfers, we recommend that you use Curfex to send a large amount of money the first time, so that you can complete the transfer process at a reasonable cost.

Security

Finally, the last criterion is security.

International money transfers deal with money. Needless to say, security is a very important factor to be considered when choosing a service.

To get straight to the conclusion, both Wise and Curfex are very secure services with high credibility, as they both hold the qualification as a funds transfer service provider stipulated by the government.

In addition, Curfex is licensed by the Financial Services Agency (FSA) and deposits funds with them. It means that even in the event of a default on the end of Curfex, users do not have to worry about not receiving the money, making it a highly secure service.

Wise and Curfex Service Comparison

The table below compares Wise and Curfex’s services based on the features discussed above.

Please refer to this to help you determine which service better suits your criteria.

What Do Users Say About Wise and Curfex?

What are users’ opinions about Wise and Curfex?

Here are some reviews and ratings from users of each service.

Reviews from Wise Users

The following are some of the reviews found from Wise users.

“My father recommended me to use the international money transfer service Wise, and I really liked it. Low fees, easy operation, and super speedy transfer! I used to go to the counter of a mega bank and pay a huge fee… I wish I switched to Wise earlier!”

“Completed my first international money transfer with Wise (to Croatia). It is convenient and the fee is cheap. When I was in junior high and high school, they charged about 5,000 yen just for the handling fee to send money to the US. I would be great if Wise supported Taiwanese money transfers too.”

“Wise’s money transfer security was so difficult that it took almost 3 weeks to receive an approval email.”

Many have expressed surprise at the simple operation and smooth procedure. Some have commented that they were able to save the large fees charged by banks since they started using Wise.

Since it is a well-known service, Wise receives a variety of comments, making it an easy service to refer to the users' opinions.

Reviews from Curfex Users

The following reviews were from Curfex’s users.

“Curfex withdrawals are really fast.”

“I've only tried bank transfers, but I hear Curfex is good.”

“Curfex money transfer is super fast!”

Many Curfex reviews were highly praised for the speed and convenience of the money transfer process.

The quick transfer also seems to be very popular with those who use foreign exchange services often.

Also, Curfex did not have as many user reviews as Wise, since it is relatively a new service that is just starting to attract attention. Some users commented that they have heard of the good reputation but had not yet used the service. This is a good indication that Curfex is a service that is likely to see a rapid increase in the near future.

Author’s Recommended International Money Transfer Services

Both Wise and Curfex are international money transfer services with attractive features.

The best service to use will depend on what your priority is, so here is our view on recommended international money transfer services depending on your needs.

For Those Who Prioritize Name Recognition

If name recognition is important to you, and you would like to refer to many user reviews, Wise is a good choice.

Wise is one of the best-known international money transfer services in Japan. Due to this, a large number of user reviews are available, so we recommend Wise to those who would like to check user reviews as a reference.

Meanwhile, Curfex is a service with a growing number of users in Japan in recent years. It is an excellent service that may well surpass Wise in the future, but at this point, it can be said that Wise is better known.

For Those Who Prioritize a Low Fee

Although both services have low fees, we recommend Curfex if you want to keep your fees as little as possible.

As mentioned previously, Curfex is currently offering a campaign with a first-time fee waiver. If you are only planning to send money once, you can definitely take advantage of this campaign. Even if you are going to send money multiple times, you will benefit greatly if you plan to send a large amount with the first transfer.

As for the fees for the second and subsequent transfers, Wise charges a fixed fee for each country, so the fee will vary depending on which country you send money to.

Curfex has a flat 1% fee for the second and subsequent transactions, so you can rest assured without the worry of fluctuating fees.

Recommended Services Depending on the Destination

Curfex has a fixed fee of 1%, but Wise's fee varies depending on the country to which you send money.

How big of a difference would there be between Wise and Curfex in the transferring amount, processing time, and other factors depending on the destination? We will present some examples below.

Money Transfers to Korea

If the remittance destination is Korea, how would the processing time and fees be for Wise and Curfex?

In addition to the two services, the article below compares some other commonly used international money transfer methods for sending money to Korea.

https://curfex.ghost.io/international-money-transfer-service-comparison-for-korea-en/

Money Transfers to China

The article below compares Curfex and Wise, as well as some other commonly used international money transfer methods for sending money to China.

https://curfex.ghost.io/transferring-money-family-friends-china-en/

Money Transfers to Thailand

Visit the article below to check the simulation of the processing time and fees with Wise and Curfex, as well as some other commonly used international money transfer methods for sending money to Thailand.

Money Transfers to the U.S.

Visit the article below to check the simulation of the processing time and fees with Wise and Curfex, as well as some other commonly used international money transfer methods for sending money to the US.

https://curfex.ghost.io/money-transfers-japan-us-basic-knowledge-en/

https://curfex.ghost.io/money-transfers-japan-us-basic-knowledge-en/Money Transfers to Europe and Germany

Visit the article below to check the simulation of the processing time and fees with Wise and Curfex, as well as some other commonly used international money transfer methods for sending money to Europe, including Germany.

Achieve a Smooth Money Transfer Using International Money Transfer Services!

When choosing an international money transfer service, be sure to check in advance the fees, processing time, the availability of benefits, and the security of the service, and choose a company that provides the service meeting your needs.

Both Wise and Curfex are services that are currently attracting a lot of attention. In particular, Curfex's first-time fee waiver campaign allows users a money transfer at an extremely low price, so it is a service we can recommend with confidence. Curfex is also dedicated to the Japanese market, so it offers excellent support for Japanese people, including a chatbot that allows them to easily ask questions when they need help.

If you plan to use international money transfers soon, we highly recommend signing up with Curfex now and be ready for your first-time transfer at no charge!

https://remit.curfex.com/en

References:
https://wise.com/jp/
https://wise.com/jp/terms-of-use
https://wise.com/jp/blog/revolut-wise-comparison
https://www.watch.impress.co.jp/docs/news/1307840.html
https://www.curfex.com/
https://emotional-link.co.jp/kaigaifx/curfex/
https://fxex.jp/curfex/
https://twitter.com/aikanium/status/1605528270543286272
https://twitter.com/naruminzzz/status/1605047663699034112
https://twitter.com/uyu5k/status/1607482425868947457
https://twitter.com/Dr_Golder/status/1166603451603783681
https://twitter.com/gold_coconat/status/1348551661413810177
https://twitter.com/LZBkadjQ1ioLcCw/status/1428209860085121024

Do you need to support the living expenses of your child who is studying in the U.S.?

Do you live in South Korea and have plans to receive remittances from a friend in Japan?

If you live abroad or have family or friends living abroad, the money transfer should be processed through an international money transfer service.

In recent years, international money transfers have become more popular and accessible not only through banks but also through online services. Although this has made the procedure easier, many people may not yet be accustomed to the system, such as the various fees incurred due to currency differences and how the transferring amount changes depending on rate fluctuation.

One of the common questions that often arises is whether "taxes" are applied to international money transfers.

Without a proper understanding of the taxation of international money transfers, you may find yourself in violation of your tax obligations without even knowing it. Those who currently use or plan to use international money transfer services are well advised to check whether consumption tax and other taxes will be imposed on international money transfers.

In this article, we will discuss in detail whether taxes are imposed on international money transfers, which cases are subject, and how to report them.

Are International Money Transfers Subject to Consumption Tax?

First, let’s review whether international money transfers are subject to consumption tax.

Consumption tax is imposed when money is spent. So, in the case of international money transfers, it should be viewed as a tax that is imposed on the sender, not the recipient. As it turns out, no consumption tax is imposed on international money transfers.

The Consumption Tax Law in Japan stipulates tax exemptions, of one of which indicates that the consumption tax on fees incurred with international money transfers are tax exempt.

​​Consumption tax is imposed on monetary transactions in Japan. Many people mistakenly believe that international money transfers from Japan to foreign countries are subject to consumption tax since they are performed in Japan. However, these fees are exempt from taxation as they are defined as non-taxable.

When sending money overseas, various fees are imposed, such as transfer fees, exchange fees, and intermediary bank fees. As a result, in many cases you will end up needing more funds than initially expected.

But as far as consumption taxes are concerned, there is no need to worry about having to pay an additional amount for the fees incurred.

Types of Taxes Imposed on International Money Transfers

So, is there absolutely no need to worry about taxes at all when it comes to international money transfer transactions? The answer is no– there are taxes other than consumption taxes that are relevant to international money transfers.

The taxes listed below are those that may incur upon receiving international money transfers. Be sure to check them carefully in advance.

Taxes on International Money Transfers: Income Tax

First, we will look at income tax.

If the money received through international money transfer is income, income tax is due.

Income tax applies to money received as wages or earned through one's own business or other activities. Therefore, income tax is also imposed when you receive profits from overseas business development, and income from real estate held abroad is also subject to tax.

Some people think that income tax is levied only on work or business in conducted Japan, but be sure to remember that income generated overseas is also subject to taxation.

Taxes on International Money Transfers: Capital Transfer Tax

Another type of tax that may be relevant to international money transfers is the capital transfer tax.

Capital transfer tax is due on any money received through international money transfer that is deemed to be subject.

If the sender and recipient both have an address in Japan, the transfer is most likely be deemed subject to taxation. On the other hand, if one of the addresses is outside Japan, the criteria will be a little more complex.

The detailed conditions under which an international money transfer is subject to capital transfer tax are as follows:

Case 1: The sender is a Japanese national, and their address is in Japan

A capital transfer tax is incurred regardless of the recipient’s address.

Case 2: The sender is a non-Japanese national, and their address is in Japan

A capital transfer tax is incurred if the recipient is a Japanese national whose address is in Japan or who had a Japanese address within the past 10 years.

Case 3: The sender is a Japanese national and their address is outside Japan, but they have had a Japanese address within the past 10 years

A capital transfer tax is incurred regardless of the recipient’s address.

Case 4: The sender is a non-Japanese national whose address is outside of Japan

A capital transfer tax is incurred if the recipient is a Japanese national whose address is in Japan or who had a Japanese address within the past 10 years.

Case 5: The sender’s address is in Japan, and they haven’t had address in Japan within the past 10 years

A capital transfer tax is incurred if the recipient is a Japanese national whose address is in Japan or has had address in Japan within the past 10 years.

Reference: IRS

https://www.nta.go.jp/taxes/shiraberu/taxanswer/zoyo/4432.htm

Simply put, a capital transfer tax is incurred in the cases where the sender or recipient has an address in Japan either in the past within 10 years or present.

If you would like to see further details, you can check from the IRS website.

Which International Money Transfer Cases are Exempted from Taxation?

We have looked at the types of tax and cases subject to them. But there are also cases in which international money transfers are not subject to taxation.

In this section, we will provide some examples of cases in which taxation is exempted.

Transfer of Funds in Possession

The first case is the transfer of one's own funds to a domestic or foreign destination.

If you study or travel abroad for work, it is quite common to open a new account in the destination country in addition to your domestic one.

No capital transfer or income tax is imposed on the transfer of your own fund from your overseas account to your Japanese account, as it is merely considered a transfer.

If you’re worried about having to pay taxes every time you transfer your own money, there is no need for that!

Receiving Living Expenses

Likewise, no tax will be incurred for the receipt of living expenses transferred by dependent family members.

Money transfers to dependant family members are deemed as remittances of necessary living expenses for education or childcare. If you send money to your family members for studying abroad or overseas business trips, it is subject to tax exempt. In this case, the taxpayer is required to submit Documents Concerning Relatives and Documents Concerning Remittances to the withholding agent at the time of filing the tax return.

However, you should also be aware and careful that it may not be recognizes as living expenses if the money sent is used for other purposes.

Please note that this tax exempt only applies to dependent family members. Money transfers to friends who lived with you or to to family members who are not your dependents will not be eligible.

Taxes Incurred with Money Transfers to the U.S.

Now, let’s take a look at the types of taxes incurred when transferring money to family and friends, using the U.S. as an example destination.

When transferring money to the U.S., there is no consumption tax on the remittance fee, so there is no tax incurred on the sender's end.

On the other hand, the following taxes may be imposed on the recipient:

• Capital transfer tax
• Income tax
  

If the remittance is from a dependent family member and is for living expenses, it is exempt from taxation; otherwise, a capital transfer tax is due. In addition, income tax is due on money received from a company or from one's own business.

Be sure to check the classification of the fund to be sent first, and then check for any taxes that may be incurred.

Taxes Incurred with Money Transfers to China, Korea, and Thailand

Next, we will look at money transfers to Asian countries such as China, Korea, and Thailand.

There is no consumption tax is imposed on the remittance fee in this case, so again, there is no tax incurred on the sender's end.

However, the recipient may be subject to the following taxes:

• Capital transfer tax
• Income tax
  

As with remittances to the U.S., these remittances are also exempt from tax when sent by dependent family members as living expenses, but capital transfer tax is due on other remittances.

Even if it is not treated as a capital transfer tax, it may still be considered income tax if the money is income from a company or earnings from one's own business.

Please check in advance which classification the money you send applies to, so that you know whether or not it is subject to taxes.

How to Report Taxes Incurred on International Money Transfers

So, how should you report the taxes incurred on international money transfers? In this section, we will go over the steps and conditions of filing tax on international money transfers.

Tax Filing to the Tax Office and IRS

Income tax and capital transfer tax incurred through international money transfers are subject to the annual tax return.

A tax return is a procedure whereby income from January 1 to December 31 is reported to the government between February 16 and March 15 of the following year to determine the amount of taxes due.

It may seem difficult for those who have never done it before, but online tax filing has recently become available, saving the hassle of having to submit a number of documents to the tax office.

You can file your tax return using one of the following methods:

• Bringing the declaration documents to the tax office and completing the procedures
• Sending the prepared documents to the tax office by mail
• Completing the procedure online using e-tax
  

Please be sure to complete the procedure by the deadline using a method of your choice.

Should I File a Tax Return If the Amount is Less than 1M Yen?

If the amount received by remittance exceeds 1,000,000 yen, the financial institution is required to report this to the tax office. In other words, there is no reporting obligation to the tax office for remittances of 1,000,000 yen or less.

Many of you may be wondering, “does that mean I don’t have to file a tax return if the remittance amount is smaller than 1,000,000 yen?” The answer is; regardless of the amount, it must be declared as long as it is taxable.

Financial institutions are not obliged to report remittances over 1,000,000 yen, but that does not necessarily mean they don’t report them.

Regardless of whether you are obliged to report or not, the tax office may check whether you have declared your tax by remittance, so be sure to complete the procedure.

Will the Tax Office Find Out if I Don't File a Return?

If a taxpayer fails to file a tax return, there is a possibility that the tax office will inquire or conduct a tax audit as a check against income tax and capital transfer tax due to remittances, and find violations.

If the tax office finds a failure of tax payment, a delinquent tax will be added to the amount of taxes that should have been paid. Thi is like a penalty, so the more delinquent you are, the higher the percentage amount will be added to your tax bill.

You may feel lucky that you didn’t have to pay tax, but you will end up having to pay an extra amount as a result.

Is There a Refund for Taxes on International Money Transfers?

Income taxes incurred on money received through international money transfers are eligible for the foreign tax credit.

This is a refund for income earned in a foreign country for which both Japanese and foreign taxes have been paid, resulting in double tax payments.

To take advantage of the foreign tax credit, proof of payment of taxes incurred abroad is required when preparing tax return documentation. By submitting documents that confirm how much you have paid overseas for taxes when filing your tax return, you can receive a refund for double tax payments.

Tax returns tend to give the impression that you have to pay a lot, but if you file it correctly, you will be eligible for a refund for the amount you have lost. Make sure you complete the procedure as instructed by the relevant authorities.

Why Curfex is the Best Choice for International Money transfers

In this article, we have looked at the types of tax incurred with international money transfers.

When sending money overseas, it is essential that both the sender and recipient have good knowledge of taxes as they go through the procedure. Make sure to obtain accurate information, otherwise, you can be evading taxes without even knowing it.

Although it is mandatory to provide correct information when filing a tax return, many people may find it difficult to prove the record of all transactions, especially those who transfer money on a frequent basis.

Curfex is an international money transfer service that offers the issuance of a certificate of remittance.

Having a certificate with the correct record of the remittance allows for more accurate filing to the relevant authorities, thereby preventing problems related to taxes.

In addition, Curfex is also characterized by the lowest fees for money transfers in the industry.

With Curfex, there are no relay bank charges, which occur with bank transfers. While most banks add their own exchange fees to the actual exchange rate for remittances, Curfex uses the actual exchange rate without adding any unnecessary fees.

On top of that, Curfex is currently offering a fee waiver campaign for the first transfer.

Our commitment to delivering exceptional service sets us apart from the competition and ensures that our customers have a positive experience every time they use our service. Whether you have a question about fees, exchange rates, or anything else related to your money transfer, our team is here to help. We are dedicated to making your money transfer process as smooth and stress-free as possible, and we are always happy to assist with any concerns or issues you may have. So if you're looking for a reliable and customer-focused money transfer service, look no further than us!

If you are considering or have plans to send money overseas, don't miss this chance and sign up with Curfex!

https://remit.curfex.com/en

References:
https://www.nta.go.jp/law/tsutatsu/kihon/shohi/06/05.htm
https://grancers-group.com/articles/countries_to_send_08
https://www.nta.go.jp/taxes/shiraberu/taxanswer/zoyo/4405.htm
https://www.nta.go.jp/taxes/tetsuzuki/shinsei/annai/gensen/kokugai/index.htm

Japan and China are two countries in Asia that are very close geographically. As such, many Japanese people visit China for various reasons, including leisure, business, and study abroad.

The need to send money to China may not be for a personal reason as well; many people have come across the need to send money when their family or friends are staying in China, such as when:

• Sending some money for living expenses to a spouse on a business trip in China
• Providing financial support for a family member studying in a school in China
• Sending money to a friend in China as a wedding gift
• Visiting a friend in China and sending money ahead for travel and living expenses
  

It is well-advised for those who are planning on sending money to China, whether now or in the future, to understand the basics of international money transfers.

In this article, we will discuss some recommended international money transfer methods and the basics of sending money to China.

Institutions Involved in International Money Transfers to China

First, let’s take a look at the institutions involved in international money transfers to China to get a better understanding of how it works.

An international money transfer to China usually involves the steps shown below.

1. The sender requests a money transfer at a Japanese financial institution that handles international money transfers.
2. Upon receiving the request, the financial institution exchanges the money into the local currency of the destination country.
3. The transaction is processed through a relay bank and then to the receiving bank (This step is relevant only for bank transfers).
4. The recipient receives the transferred money in the designated bank account.
   

There is a clear difference between banks and international money transfer services in terms of the time needed to complete a transaction.

Sending money to China using a bank takes about a week from the time of request to the completion of the transfer, whereas using a money transfer service often takes only one or two days.

If speed is a priority, we recommend using an international money transfer service instead of a bank.

Fees Charged When Transferring Money to China

When sending money internationally to China, there are certain fees for both bank and international money transfer service procedures.

The types of these fees will vary depending on the financial institution and service. In this section, we will look at the fees incurred in each step of both bank and international money transfer services.

Fees charged with a bank

• Remittance fee
• Receiving fee
• Relay bank fee
• Foreign exchange fee
  

Fees charged with an international money transfer service

• Remittance fee
• Foreign exchange fee (dependent on the service)
  

It is clear that more fees are charged when transferring through a bank.

This is because bank transfers involve relay banks before delivering the currency to the receiving bank. Depending on the bank and the route taken, multple relay banks may be involved in the procedure. Do be aware that each relay bank will charge its own fee, so the more relay banks involved in a transaction, the more fees the sender will have to pay.

International Money Transfer Regulations in China

China has regulations on international money transfers, so it is essential to learn about them in advance.

Currently, China's foreign currency control regulations require that a tax preparation report be submitted to the tax authorities for remittances of over $50,000 per transaction. After the report is received, a seal must be affixed and submitted with all other necessary documents.

The regulations also stipulates that recipients in China cannot transact international money transfers in excess of $50,000 per year. If the amount exceeds the equivalent of $50,000, the system is designed so that the transaction will be canceled after deducting a fee.

This is not a problem as long as the amount being transferred is within the stipulated range. However, senders should be careful and ensure that the recipient has not already received more than the equivalent of $50,000 before performing a transaction.

There is an exception to the $50,000 limit. If the recipient in China is a non-Chinese and the purpose of the transfer is salary or real estate income payment earned in China, the recipient is allowed to convert the income into foreign currency even if it exceeds this limit.

Other concerns may include insufficient provision of details, such as the purpose of the transfer. In this case, the transfer may take longer than expected or be returned to the sender. Senders have to ensure that all information is complete before beginning the transaction process.

Reference: Q&A on remittance of money outside China by individuals

Reference: Foreign Exchange Control Regulations and Taxation in China | PwC Japan Group

Reference: Renminbi Forward Remittance

Recommended Methods of Money Transfers to China: Bank

In this section, we will look into the recommended methods of international money transfers to China. Let us start with banks.

Sumitomo Mitsui Banking Corporation

Sumitomo Mitsui Banking Corporation (SMBC) provides SMBC Direct, an internet banking system that allows international money transfers 24/7. (*Procedures are not available on Sundays from 9:00 p.m. to 7:00 a.m. due to maintenance.)

SMBC is a megabank in Japan trusted by a very large number of local users, which can provide peace of mind when utilizing their services.

In addition, if the recipient of a transfer is Japanese, there is a high chance that they will have an account with SMBC, making it an easy choice from the recipient as well.

https://www.smbc.co.jp/kojin/otetsuduki/sonota/kaigai/

Rakuten Bank

All international money transfer procedures to China via Rakuten Bank are handled through Internet banking. Rakuten Bank allows users to set up an account easily online, an attractive feature for many younger generation users.

Their international money transfer procedures are carried out over the Internet, and are very popular for their low fees and speedy transactions compared to those of other banks.

https://www.rakuten-bank.co.jp/geo/remittance/charge/

Recommended Methods of Money Transfers to China: Online-Based Services

Online-based money transfer services are growing rapidly in popularity in recent years.

In this section, we will look at some popular international money transfer services and discuss why such services have become popular.

Paypal

Paypal is a service that allows online payments at more than 2,400 commercial stores worldwide and money transfers between individuals. Paypal also offers international money transfers to 190 countries in 23 currencies.

Those who already use Paypal for online payments and shopping will find it an easy option as the same smartphone app can be used to transfer money overseas.

Unfortunately, Paypal does not currently support international money transfers in Chinese yuan, which means it cannot be used to send money to China. Therefore, this service is not an option if transferring money to China.

https://www.paypal.com/jp/webapps/mpp/personal/send-money-overseas

https://www.paypal.com/jp/webapps/mpp/paypal-fees

Wise

Wise is an international money transfer service based in the United Kingdom. While there are a variety of international money transfer services, Wise is known for its particularly speedy transfers and low fees. Wise currently supports currency exchange into 53 currencies and money transfers to 80 countries, making it an increasingly popular service that is accessible to many users.

Wise also has a functional smartphone app, so procedures can be completed using a smartphone.

Comparison of Money Transfer Methods to China

So, how much and how long will it take to actually send money to China?

The table below compares the fees and time of each service when sending 500,000 yen.

Curfex is the Recommended Choice for Sending Money to Family and Friends in China!

Now that we have looked at several methods of sending money to China, it is clear that choosing a service with high speed and low fees is important for many users.

Now, let us take a look at Curfex, an international money transfer service that allows money transfers to China.

Curfex is currently attracting a great deal of attention for its speed and low fees, among the best in the industry, where transactions can be completed in the same day or the next business day.

On top of that, the most attractive feature of Curfex is that it has no currency exchange fees, thus removing a fluctuating and stressful component of transfers with other services.

Curfex’s fees are stable because it uses the "mid-market rate," in contrast to most other services that use their own rates which adds fees on top of the actual exchange rate.

The table below is a simulation of a remittance of 500,000 yen to China via Curfex, with an amount of 24,505 CNY received.

It can be seen that Curfex offers a faster and more affordable international money transfer service when compared to other services previously discussed in the article.

(The cost is calculated with the mid-market rate as of 11/5/2022.)

Currently, Curfex is offering a fee waiver campaign for the first transfer.

With the transfer fee waived and no added fees, Curfex is a highly economical and recommended way for international money transfers!

Our commitment to delivering exceptional service sets us apart from the competition and ensures that our customers have a positive experience every time they use our service. Whether you have a question about fees, exchange rates, or anything else related to your money transfer, our team is here to help. We are dedicated to making your money transfer process as smooth and stress-free as possible, and we are always happy to assist with any concerns or issues you may have. So if you're looking for a reliable and customer-focused money transfer service, look no further than us!

If you plan to send money overseas, including to China, don't miss this chance to sign up with Curfex and save some money!

https://remit.curfex.com/en

References：
https://wise.com/jp/blog/china-overseas-remittance-rules
https://help.rakuten-bank.net/faq/show/6905?category_id=211&site_domain=business
https://www.digima-japan.com/knowhow/china/16097.php
https://exiap.jp/international-money-transfers/send-money-to-china

When studying or traveling abroad, access to foreign currency is one of the most essential items, be it paying a part of travel expenses to a local hotel or travel agency in advance, or preparing living expenses when for a short study or live abroad stint.

Without knowledge or experience of international money transfer, it may be hard to know what to do, or where to find the best service for sending money internationally.

In this article, we will discuss various methods of international money transfer, how to choose a service, and the best method by destination country, useful knowledge for those planning to study or travel abroad.

The Key Factors: Fees, Speed, and Convenience

While banks have long been the mainstream method of international money transfer, online services have also grown significantly in popularity.

The most suitable service will depend on the priority of the following three factors; fees, speed, and convenience.

For example, if receiving help and support is a priority, a bank will be the best option as they have a helpdesk.

On the other hand, those who wish to reduce the fees for international money transfers as much as possible, or those wanting to complete transactions speedily, should opt for an international money transfer service as they offer speedy transactions at lower prices.

Why are there such differences in fees and speed between banks and international money transfer services? Let's take a more in-depth look at the differences and characteristics of each method.

Banks: Recommended for Those Prioritizing Support Rather than Fees and Speed

Are you not so particular about the fees and speed, and prefer to receive support when doing international transfers?

In that case, we recommend international money transfer services offered by a bank or a major financial institution.

Banks, as credit institutions, are fully equipped with thorough security and support systems and can provide tailored support depending on what kind of procedure needed.

In most cases, there is a dedicated consultation service for international money transfers. Immediate support from a specialist is available for any questions or concerns about the procedures involved.

Of course, international money transfer services also have a customer service center, but these are often only limited to online communication.

Therefore, for more generous support and peace of mind, transferring money through a bank is the most suitable option.

International Money Transfer Services: Recommended for Those Prioritizing Fees and Speed

On the other hand, to keep the fees low or complete the transfer procedure in a short period, we recommend using an online international money transfer service.

Let's take a look at the differences in the fees charged for money transfers by banks and international money transfer services.

Fees charged when transferring money via a bank

• Remittance fee: Fee charged by the bank where the remittance is made
• Receiving fee: Fee charged by the bank where the money is received
• Relay bank charges: Fees incurred by the relay bank before reaching the receiving bank
• Foreign exchange commission: Commission incurred when exchanging currency using the bank's own exchange rate
  

The overall cost tends to be higher with money transfers through banks, as many relay banks are involved in the process. There are many types of fees, such as a remittance fee by the Japanese bank, a foreign exchange commission when the bank exchanges currencies at its own rate, fees charged by relay bank(s), and a receiving fee by the bank in the destination country.

Do note that depending on the country and the route, there may be more than one relay bank, each of which will charge a separate fee.

Fees charged when transferring money via an international money transfer service

• Remittance fee: Fee charged when sending money from an international money transfer service
• Foreign exchange commission: (There are two types of services: those that charge a commission by using their own exchange rate, and those that use the actual exchange rate and charge no commission.)
  

Since international money transfer services do not use banks for transactions, only two types of fees are incurred: a remittance fee and a foreign exchange commission.

In addition, there are also two types services in terms of foreign exchange commission: those that use the "mid-market rate," which is the actual exchange rate, and those that use their own exchange rate with a commission added on top of the exchange rate.

To keep fees low, always check if the offered rate only includes essential fees, or if there are additional fees on top of the exchange rate, before choosing a service.

There is also a difference in the speed between banks and international money transfer services. Since bank transfers involve many financial institutions, it usually takes about 5 to 7 business days to complete a transaction. On the other hand, international money transfer services do not use relay banks, allowing speedy transactions that take only 1 to 2 business days.

Based on the given points, international money transfer services are better options for those seeking a lower fee and a speedy transfer.

Recommended International Money Transfer Services by Destination Country

Depending on the destination country, the available services, fees, and duration may differ slightly. In this section, we will introduce recommended services for the three most popular destinations – South Korea, the United States, and Thailand – and compare each with the other.

Money Transfers to South Korea

When sending money to South Korea, international money transfers through Hana Bank, a Korean bank, are more popular than the ones using Japanese banks. Hana Bank is a major bank with users and branches in Japan, so it may be a good idea for those who frequently transfer money to South Korea to open an account with Hana Bank for convenience.

Rakuten Bank also offers a relatively low handling fee compared to the megabanks, making it one of the more affordable options.

In terms of money transfer services, Wise and Curfex offer low fees and speedy transfers, making it convenient for those who want to transfer money quickly. PayPal is also commonly used not only for international money transfers but also for payments at stores worldwide. For those already with an account, it is another easy option.

On the other hand, Paypal also has drawbacks, such as taking a longer time than other money transfer services and charging higher fees than Wise and Curfex since it uses its own exchange rate, which adds a fee on top of the mid-market rate.

Click here to read more about sending money to Korea

Money Transfers to the U.S.

The United States is one of the most popular destinations to send money, so it is safe to assume that almost all banks and international money transfer services support money transfers there. While there are many options, we recommend the following methods and services.

Rakuten Bank is recommended for those who want to perform the transfer through a bank. The fees are relatively low and it does not require many days to complete a transaction.

Sumitomo Mitsui Banking Corporation is also a highly reliable megabank in Japan, so it can be recommended to those who would like to use the consultation service in case of any problems.

Wise, Exparo, and Curfex are convenient international money transfer services that can complete the procedure smoothly even if the destination country is as far away from Japan as the United States.

However, do note that Wise has recently increased some of its fees, so it is recommended to check if there is an additional fee added on top of the mid-market rate.

Exparo also uses its own exchange rates, which may translate to hidden fees.

Curfex is a service that allows trading at mid-market rate, which means no hidden fees and maximum commission savings.

Read more about sending money to the U.S. here.

Money Transfers to Thailand

Thailand is a popular destination for international money transfer, mainly for business trips and tourism.

Sumitomo Mitsui Banking Corporation is a highly reliable megabank among the many financial institutions and international money transfer services that support transfers to Thailand, but the transactions take quite a long time and incur high fees. For transfers through a bank that save a little more money and time, Rakuten Bank is the recommended option.

If low cost and speed are priorities, using an international money transfer service is by far the best choice.

Wise, Paypal, and Curfex are the three services listed here, but if speed is the priority, we recommend Wise or Curfex as they can process the transaction by the next business day.

If cost is of concern, Curfex is the best option as it uses the mid-market rate rather than its own exchange rate and clearly states that there are no added fees.

For Speedy Money Transfers at a Low Cost, go with Curfex!

In this article, we have looked at the features of different international money transfer services and how to choose one.

For eisure or business trips, as well as studying abroad, international money transfer is an essential process. It is important learn the basics and even complete any sign up or registration processes in advance, as the identification process may take a while.

Speed and fees are the key points when it comes to choosing an international money transfer service. To keep the fees as low as possible and perform the transfer speedily, Curfex offers the best of both worlds.

Curfex only charges a 1% fee on the amount transferred, and the exchange rate is based on the mid-market rate, which means there is no need to worry about added fees.

To sweeten the deal, Curfex is currently offering a free first transfer. If you have plans to go abroad sometime soon, do register now and take advantage of the promotion.

Our commitment to delivering exceptional service sets us apart from the competition and ensures that our customers have a positive experience every time they use our service. Whether you have a question about fees, exchange rates, or anything else related to your money transfer, our team is here to help. We are dedicated to making your money transfer process as smooth and stress-free as possible, and we are always happy to assist with any concerns or issues you may have. So if you're looking for a reliable and customer-focused money transfer service, look no further than us!

Take this opportunity to register with Curfex and enjoy your stay abroad with great savings!

https://remit.curfex.com/en