Overview
Many foreign residents in Japan are surprised by the cost of sending money overseas through a bank.
You may see a transfer fee of around ¥4,000–¥7,500 and assume that is the total cost.
However, after the transfer completes, the recipient receives significantly less money than expected.
This is not caused by a single fee.
International SWIFT transfers from Japan are expensive because multiple financial institutions process the payment, and each step introduces its own cost structure.
In reality, the visible transfer fee is often the smallest part of the total cost.
This article explains:
• why SWIFT transfers from Japan cost so much
• what actually happens during the transfer process
• the hidden costs most banks do not show
• how residents in Japan can reduce international transfer expenses
For a complete overview of overseas remittances, see:
Wise International Transfers in Japan: A Complete Guide for Residents
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Short Answer
SWIFT transfers from Japan are expensive because the payment is processed through multiple banks rather than a single transaction.
Each institution involved in the transfer applies its own pricing, including exchange-rate margins, intermediary bank deductions, and receiving bank fees.
As a result, the transfer fee shown by the sending bank is only a small portion of the real cost of an international bank transfer.
What Is a SWIFT Transfer?
To understand why the costs are high, you first need to understand how a SWIFT transfer actually works.
A SWIFT transfer is an international bank wire that uses the global SWIFT messaging network.
SWIFT does not actually move money.
It sends secure payment instructions between banks in different countries.
Because banks in different countries rarely hold accounts with each other, they rely on partner banks to complete the transaction.
This system is called correspondent banking.
Instead of a direct payment, the transfer moves step-by-step between financial institutions until it reaches the recipient.
Why SWIFT Transfers From Japan Are Expensive
1. Sending Bank Fees
Japanese banks charge an outgoing international wire fee.
Typical fees:
• ¥4,000–¥7,500 online
• ¥7,500–¥10,000 at a branch
This fee only pays for the bank to initiate the transfer.
It does not cover currency conversion or overseas processing.
Many senders mistakenly believe this is the total transfer cost.
It is not.
2. Exchange-Rate Margin (Largest Cost)
The biggest cost is usually hidden inside the exchange rate.
Banks do not use the real market exchange rate.
They apply a customer exchange rate that includes a markup.
Example:
Market rate: 1 USD = 150 JPY
Bank rate: 1 USD = 145 JPY
That 5-yen difference is the bank’s profit margin.
On a ¥500,000 transfer, this alone can cost over ¥15,000.
For a detailed explanation, read:
Why Japanese Banks Don’t Show the Real Exchange Rate
3. Intermediary Bank Fees
SWIFT transfers rarely go directly to the recipient’s bank.
They typically pass through 1–3 intermediary (correspondent) banks.
Each intermediary bank may deduct:
• handling fees
• routing charges
• settlement fees
Typical deduction:
$10–$40 per bank
The sender usually cannot know in advance which banks will be used.
This is one of the main reasons recipients receive less money than expected.
4. Receiving Bank Charges
The recipient’s bank may also charge an incoming international wire fee.
Common receiving fees:
• incoming wire fee
• foreign currency handling fee
• conversion fee
Because this occurs overseas, the sender in Japan cannot see it beforehand.
Why the Total Cost Is Hard to Predict
Japanese banks can only control the first step of the transfer.
They cannot control:
• intermediary banks
• overseas regulations
• compliance checks
• receiving bank policies
This is why banks usually cannot guarantee the final received amount.
Real Cost Example
You send: ¥500,000
Typical breakdown:
Sending fee: ¥5,000
Exchange-rate loss: ~¥15,000
Intermediary deductions: ~¥4,000
Receiving bank fee: ~¥3,000
Total cost: about ¥27,000+
The visible fee was only a small portion of the true expense.
For a deeper explanation of why the received amount is often lower than expected, see:
Why Recipients Often Get Less Money Than Sent From Japan
Why Many Residents Choose Alternative Transfer Methods
Some international transfer services use a different structure.
Instead of moving money across borders, they move money domestically inside each country and match the payments internally.
Because fewer banks are involved:
• no intermediary deductions
• real exchange rate
• final amount shown before sending
This makes transfer costs predictable.
When SWIFT Transfers Are Still Necessary
SWIFT transfers are still required for:
• corporate payments
• property purchases
• legal escrow transfers
• very large regulated transactions
However, for normal personal remittances, they are usually the most expensive option.
How to Reduce International Transfer Costs
Residents in Japan can reduce transfer costs by:
• comparing exchange rates, not only fees
• avoiding frequent small transfers
• confirming the recipient currency
• checking the final received amount
Even small improvements can save tens of thousands of yen per year.
Final Thoughts
SWIFT transfers from Japan are expensive not because a bank is overcharging, but because the international banking system involves multiple institutions and multiple layers of pricing.
The visible transfer fee is only one part of the total cost.
Most of the expense comes from exchange-rate margins and intermediary bank deductions.
Once you understand how the system works, international transfers become predictable — and you can choose the method that fits your situation.
