Cashing International Money Order

After some research, it seems the best way to access large amounts of cash (in terms of exchange rate & security) while traveling in Japan is to purchase international money orders while in the US, bring them, & cash them at local Japanese post offices as needed.

I've heard Japanese post offices have recently been privatized, and that fees and policies may have changed. I'd like to know what fees, if any, are charged. Also, what documentations will I need, as a traveler, in order to cash the money orders? Is this something I can easily do? Are there confusing forms involved? I plan on bringing 2 or 3 money orders at $500-$700 each.

My last resort would be to do multiple ATM withdrawals. However, that might incur a lot of fees, and the exchange rate charged by my US bank is just awful.

Why not Travelers Checks? You get the ultimate protection, no hassle to cash them at big banks, you can possibly get them for FREE at your local bank depending on the type of account you have (ie. I have a prima account at Bank of America and they issue travelers checks completely free of charge).

Another possibility is to check with your bank for their exact policy towards using international ATMs. Many local/regional banks (ie. I had IndyMac Bank before they tanked) charged no fees whatsoever for using ATMs in Japan and also offered a better rate than those at the big banks.

Money orders seem like such a hassle...

If safety is your main concern, know that money orders offer little protection over cash. You lose them or they are stolen, the post office will replace them if they haven't been cashed yet, but if they have then you may be out of luck.
Also, consider that there are no usps agents in Japan to help you if something should happen to your money orders.

I agree that in this case traveller's checks would a more attractive alternative. They offer similar exchange rates, better security features, have local agents, and can be used directly or even cashed at major retailers and hotels.

In addition, IF you go for money order option, make sure you buy "international POSTAL money order" in the US. Otherwise they cannot be cashed at post offices in Japan.

Thanks for all your input. And thank you, Bean, for reminding me about my Prima account perks!

The only reason I remotely considered international money orders is that it was recommended by various posters (some from this site) for its super exchange rate, cheap fees, & security. However, this was before Bean reminded me I could get traveler's checks free through my bank :)

Thanks, again. I love you guys! Now if only there were a section to organize a karaoke get-together in Tokyo.

Hi I have the same questions. Let's say my bank does charge for traveler's check and getting a International MO payable to me is the cheaper alternative, what processes do I need to go through to cash them in Japan Post Office?

Also, just curious, if I write the MO payable to me, why is it still unsafe?

As far as the exchange rate is concerned, the best is ATM/CC, IMO, TC, then cash. IMO & TC rates will be locked in when you purchase them. The exchange rate is fluctuating wildly & if you bet the US$ is sliding down further, by all means purchase them before you leave. But if USD rises against JPY, as Japan is trying to intervene because of too strong Yen, better to use ATM or CC as needed.
ATM fee will be minimal at the post office in Japan.

what processes do I need to go through to cash them in Japan Post Office?

I believe you just need your passport and the money order. That and a lot of time and patience. By the way make sure to get International Money Orders in Yen denominations or you won't be able to cash them.

Also, just curious, if I write the MO payable to me, why is it still unsafe?

Its not that they are inherently unsafe (less so then cash actually), rather that they are less safe that traveller's checks because they aren't insured against loss or theft.

By the way, I agree with Amazinga, CC and ATM will get you the best rates, and ATMs tend to have the best overall exchange rate (counting fees and commissions) as long as you are withdrawing larger amounts at a time ($300+). If you raise your daily withdrawal limit you can potentially withdraw up to around $5000 in cash at a time, which drives the commission and fees to practically zero.

I took advantage of postal money orders on my trip to Japan in summer 2010. I remember getting what I thought was a very good exchange rate, but I've also got a couple pieces of advice for anyone thinking about doing it themselves. First, when you go to purchase the money orders, you need to bring cash, as they cannot be purchased via card or check. Second, I recommend going to either a large/major city post office if possible, both in the US and in Japan. The goal here is to insure that the staff are familiar with the procedure, because otherwise they will have to look it up in their tome of procedures and the whole process will take forever. Also, on the Japan end, I'd recommend making the exchange at one of the post offices in Narita, as they are likely more familiar with both money orders and English speaking tourists. Making the exchange at a local urban post office in Fukuoka required a decent amount of Japanese, mostly because they'd never seen them before.

Finally, in response to yllwsmrf, I'm pretty sure that International Postal Money Orders from the US are all in dollars, and the conversion is made when you exchange them in Japan.