Seven Bank (7-11) ATM Change in Fees

So this is a post-pandemic versus pre-pandemic heads up if you use the Seven Bank ATMs.

I took out monies twice this week in Japan at at Seven Bank ATM. I noticed the following change, when you are confirming your amount withdrawal it now gives you the option of having it withdrawn directly for currency conversion purposes in your local currency (e.g. USD) or the withdrawal done in Japanese Yen, and it give you the net cost in your local currency. Of course, you only can actually withdraw Yen from a Seven Bank ATM.

ALWAYS choose your withdrawal in Japanese Yen. The bank will use the daily interbank rate for the exchange versus the currency conversion rate, and the currency spreads are quite different.

Here is my tangible example.

On Friday, October 20, prior to the Japan Central Bank doing its currency intervention, the interbank rate of exchange was Y150.45 to $1USD. My withdrawal Friday AM at the ATM netted me a rate of Y150.05 to $1USD, so the total fee was .3% (.003).

If I had used the option to have my withdrawal in USD instead, the rate was Y145.7 to $1USD which is equal to a total fee of around 3.2%, so I saved quite a bit by having the withdrawal calculated in Yen instead of Dollars, I am assuming other currency conversions for Euro, Pound etc. are similar.

I had similar experience on Thursday the 19th where my total fee was also .03%.

Prepandemic Seven Bank did not give you this choice, so choose wisely...

Stan

Regardless of which country always select the local currency. Visa or Master card rate always beat the bank own rates. If you have a foreign card with no foreign fees even better.