Cash advance on Visa cheapest way in Japan?

Has anyone tried this before?

I've been looking at the various options to withdraw yen in Japan as a Canadian. I'm travelling through Beijing for awhile first so carrying a large amount of Yen from Canada is not an option I'd consider.

I think with my Amazon (no foreign transaction fee) credit card is the best option to get cash. It uses the standard VISA rate to convert currency (1%) and then to do a cash advance, it charges 1%, minimum of $5.00. If I over-pay the card first, then I don't incur any interest charges. That gives a total rate of 2% (I'm pretty sure they won't compound them together).

Every other card I've looked into (debit or credit) charges 2.5% at least, and sometimes a flat fee too. T/C seem to have a poor exchange rate and need to wait a long time for approval. The HSBC Premier card may be an exception, but their posted exchange rates are about 2.5% at least.

I've heard that you can do cash advances at JP Bank, but I'd appreciate if anyone could confirm for me. I've never tried Amazon Visas at JP bank before.

Thanks!

Please distinguish between "cash advance" from a credit card, which is actually a loan, and "ATM withdrawal" from your bank account.

What about carrying USD - you would probably get a reasonable exchange with the "south of the border people" and USD/JPY exchange rates in Japan are much better than CAD/JPY.

Alternative - do you have a cash-card that is part of the "plus" network. I don't use VISA advances because it is too expensive and I take straight from my cheque account - the $12 fee is worth it at $1000 a time.

In Australia, most banks offer travel money cards, which are pre-loaded with your currency of choice and can be used as debit cards overseas. You can also re-load them online. Maybe you should consider this instead of your credit card, as it will lower the fees involved.
You should plan to have a decent amount of yen on you when you arrive, as Japan is very much a cash society.

T/C seem to have a poor exchange rate

Where do you get this from? T/Cs in general have an excellent rate. But fewer and fewer people are using them. They still might make sense compared to carrying a wad of cash.
Frankly, using your credit card for cash is almost like being a victim of legalized loan sharking. Use your ATM for cash withdrawals. There may be fees but that is up to your bank - another reason to use a good credit union.

f I over-pay the card first, then I don't incur any interest charges.

Are you sure that's even possible? And if it is, there's a chance that they may cut you a check for the overpayment and you'll be stuck paying interest on your cash advances

Please distinguish between "cash advance" from a credit card, which is actually a loan, and "ATM withdrawal" from your bank account.

Yes, I think this is a loan. But if you over-pay the visa (ie pay more than the balance of the card) then I don't think you get charged any interest on the loan? Only the 1% processing fee I mentioned. I should call the company to confirm though.

the $12 fee is worth it at $1000 a time.

Is it really just $12 though? What exchange rate are they giving you? Most banks will charge a flat fee ($5 in Canada) and then on top of that charge a 2.5% fee that they add into the exchange rate. It's misleading because the fee is invisible unless you compare their rate with the official rate (Bank of Canada's rate for example). In my case, I'd get charged 2.5%-4% plus $5, which comes to $30-$45 on that $1000 withdrawal. The debit card suggestion is definitely plan B though. It's fairly close.

In Australia, most banks offer travel money cards

Curious. I've heard of them (mostly negative things) but I don't know how they work in practice. Who determines the exchange rate? The american Visa travel card site says the rate is roughly 3%, but I can't find one for a Canadian source.

T/Cs in general have an excellent rate.

Hmm, well my experience has been that while T/C have nice purchase costs (sometimes commission free), the exchange rate when redeeming them is quite poor. I've had to pay 5% before in Europe. Is it different in Japan? I can get ~2.5% at the ATM if I choose banks carefully...

I'm just wondering if I can get 2% with this trick I've mentioned. It doesn't require putting large deposits into a bank either ($5000 - $100 000).

Are you sure that's even possible?
Well, over-payment is possible on my other cards. I do it when I need to purchase something that's over my monthly limit. I haven't tried with the Amazon Visa yet. I haven't heard of them cutting cheques to clear the balance, although the possibility makes me uneasy. And I'm pretty sure they won't charge interest since it'll be clear by the end of the day, but I may try with a small transaction here in Canada. I'll look into it...

Are you sure that's even possible?

Looks like it is:
http://forums.redflagdeals.com/merged-new-chase-visa-amazon-1160919/50...

http://canadianmoneyforum.com/archive/index.php/t-34370.html (8th post onwards)

I may have my new method of withdrawing cash abroad. I just hope JP Bank allows me to take a cash advance with no fee...

Yes, the fees are $7.50 for the ATM and another $5 bank fee. I get the mid-rate +2% as the exchange rate - it is very good. It I was to use a bank or exchange counter I would be facing $50 or more per transaction (and JPY/NZD for me is one of the most competitive I have found) . Even AUD/JPY would cost me $100 pr more - so I don;t use my AUD accounts.

But if you over-pay the visa (ie pay more than the balance of the card) then I don't think you get charged any interest on the loan?

I even earned a small interest by doing this 12 years ago with a CIBC visa card.

Cash advance on a credit card applies interest from the day you get the money. The only way to avoid it is to have a positive balance during the billing cycle - including when they send the statement. (It's an expensive way of getting a short-term loan)

For the travel cards, the exchange rate is determined by the bank if you purchase it from them. Banks do tend to have worse exchange rates, but you can also buy travel cards from independent money exchangers.
There's also a travel credit card, called the 28 degrees. This is the current favourite as it does not charge fees.

Hmm, well my experience has been that while T/C have nice purchase costs (sometimes commission free), the exchange rate when redeeming them is quite poor. I've had to pay 5% before in Europe. Is it different in Japan?

I can't comment about all of Europe, but as you can see on:
http://www.mizuhobank.co.jp/rate/market/cash.html
using a T/C will get you a better rate than cash. About 2 points difference buying yen with US dollars, but a 7 point difference using Canadian dollars. And GBP T/Cs do much better too.

In Japan, a TC gets you a better exchange rate over cash everywhere. Check out the rates at Narita Airport:
http://www.narita-airport.or.jp/exchange_e/

The only problem is that outside of the major airports, finding an exchange bank is getting to be a problem as fewer people use TC. You can always take them to major post offices, though. It sometimes takes a while to get them exchanged, depending on the bank and post office. I think it took 45 minutes to an hour to exchage $500 at a Higo Bank in Kumamoto a couple of years back.

My credit union supplies Amex TC at no charge, but I still don't use them as my Master Card debit card from the same place gets me TC rates or above with no service charge. There are enough 7-11s and post office ATMs around that I never have far to go. If I use the same card to purchase anything though, there are international transaction fees, etc. so I just get cash. It all depends on your bank or credit union.