<h3><span class="strongInContent">Point Redemption Rate&#8221; and &#8220;Processing Fee&#8221; for Overseas Usage Worsened from March 1</span></h3>
<p> Rakuten Card has recently undergone significant rule changes. In particular, from March 1 of this year, the &#8220;processing fee&#8221; for overseas travel using Rakuten Card has been increased, and the &#8220;point redemption rate&#8221; has been reduced by half, depending on the international brand attached to the card.</p>
<p> In fact, prior to that, Rakuten Card-related services included restrictions on the use of Priority Pass, which is included with the Rakuten Premium Card (annual fee 11,000 yen), and the Rakuten Gold Card (annual fee 2,200 yen), which offers the same point multiplier (SPU) when making purchases (3 times) as the no-annual fee Rakuten Card. The service has continued to deteriorate, such as the fact that the SPU is the same (3x) as the Rakuten Card with no annual fee. Although Rakuten Card members have been notified in advance by e-mail, there is no denying the impression that the changes have been made in secret.</p>
<figure id="attachment_415814" aria-describedby="caption-attachment-415814" style="width: 4000px" class="wp-caption alignnone"><a href="#" data-ident_hash="bacf8763"><img src="https://res.cloudinary.com/fridaydigital/image/private/t_article_image/wpmedia/2025/02/0adf6cec9a73c4d5103660a1f5a4e2e8.jpg" alt=""></a><figcaption id="caption-attachment-415814" class="wp-caption-text"> Rakuten Card has issued 31.44 million cards (as of the end of September 2012, according to Rakuten Card). Rakuten Card boasts the highest volume of credit card shopping transactions in Japan.</figcaption></figure>
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<h3><span class="strongInContent"> Even in Japan!　Uber Eats,&#8221; &#8220;SHEIN,&#8221; &#8220;Temu,&#8221; and &#8230;&#8230; some &#8220;overseas business&#8221; settlements are also covered!</span></h3>
<p> When credit cards are used for purchases made overseas in foreign currencies such as dollars and euros, the amount will be charged in Japanese yen at a later date based on the exchange rate set by international brands such as Visa and JCB, plus an &#8220;administrative processing fee&#8221;. This processing fee actually varies from card issuer to card issuer, and usually ranges from 2 to 3%.</p>
<p> Rakuten Card raised its processing fee from 2.20% to 3.63% (3.50% excluding tax) effective March 1, 2012, and the same applies to Visa, Mastercard, JCB, and American Express international brands. In fact, the rate was only raised on January 18, 2011, and before that it was 1.60%.</p>
<p> In addition, the &#8220;point redemption rate&#8221; based on the amount of payment was also changed. Until now, the &#8220;point redemption rate&#8221; was &#8220;1%&#8221; (1 point per 100 yen) for overseas payments as well as for domestic payments. From March 1, however, the rate will be reduced to 0.5% (1 point per 200 yen). The new rate applies to Visa and Mastercard international brands, and will remain unchanged for JCB and American Express.</p>
<p> The change in the point redemption rate is not limited to international travel; the &#8220;0.5% redemption&#8221; (1 point per 200 yen) will also apply when making domestic payments for some &#8220;overseas businesses. For example, &#8220;Uber Eats&#8221;, &#8220;SHEIN&#8221;, &#8220;Temu&#8221;, &#8220;Adobe&#8221;, &#8220;Zoom&#8221;, &#8220;Spotify&#8221;, etc. Note that this is not only for local payment overseas.</p>
<h3><span class="strongInContent"> Credit card payment abroad &#8230;&#8230; &#8220;Fees&#8221; are now on the rise!</span></h3>
<p> The processing fee of about 3.63% is now becoming the standard for all credit card companies. Sumitomo Mitsui Card and DC Card (both VISA and Mastercard) already raised theirs last year before Rakuten Card. Saison Card is 3.63% for VISA and Mastercard, and JCB and American Express are even higher at &#8220;3.85%. Mitsubishi UFJ Card (VISA, Mastercard) also raised its rate to 3.85% last August, while JCB and American Express remain at 2.20%. Orico Card raised the rate to 3.85% only for VISA and Mastercard last December, while JCB left it at 1.60%.</p>
<p> Currently, the cheapest rates are 2.20% for Epos Card (VISA) and 1.60% for JCB Card (JCB) and AEON Card (VISA, Mastercard, JCB). However, there is no possibility that the rate will be on par with other companies in the future.</p>
<p> On the other hand, Rakuten Card&#8217;s point redemption rate is especially important for those who utilize the &#8220;Rakuten Economic Zone. The basic 1% redemption rate (1 point per 100 yen) is high compared to other cards, and there are many options available, such as Rakuten Ichiba and Rakuten Travel. When it comes to overseas travel, the high unit price of airline tickets and hotels is so high that the damage of halving the high return is significant. While it may be understandable if the reason is the recent rise in labor costs, such as the administrative processing fee, the point reduction rate may seem to some to be a mere change.</p>
<figure id="attachment_415816" aria-describedby="caption-attachment-415816" style="width: 5246px" class="wp-caption alignnone"><a href="#" data-ident_hash="1e920184"><img src="https://res.cloudinary.com/fridaydigital/image/private/t_article_image/wpmedia/2025/02/a3e1b492dcef850467a8e61ad694d939.jpg" alt=""></a><figcaption id="caption-attachment-415816" class="wp-caption-text"> Credit cards are used frequently when traveling abroad. Many people may not know that each time they do so, they are charged a &#8220;processing fee,&#8221; and that the fee varies from company to company (PHOTO: AFRO).</figcaption></figure>
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<h3><span class="strongInContent"> Nowadays, it is unthinkable to travel abroad without using a credit card.</span></h3>
<p> Credit cards are used very frequently when traveling abroad. Cashless payment is more widespread in foreign countries than in Japan, and some stores have a sign on the cash register that says &#8220;NO CASH&#8221;. Furthermore, in recent years, local subways and buses have become more convenient, allowing passengers to board with touch-sensitive payment.</p>
<p> However, no matter how low the processing fee is, if the credit card cannot be used locally, it is worthless. American Express is also difficult to use outside the United States. In the end, since VISA or Mastercard can be used in almost any country, &#8220;ease of use&#8221; must be prioritized over processing fees when traveling abroad.</p>
<figure id="attachment_415817" aria-describedby="caption-attachment-415817" style="width: 1800px" class="wp-caption alignnone"><a href="#" data-ident_hash="31b88fab"><img src="https://res.cloudinary.com/fridaydigital/image/private/t_article_image/wpmedia/2025/02/828c7c2a7932c02ab4b0ed2a0e996457.jpg" alt=""></a><figcaption id="caption-attachment-415817" class="wp-caption-text"> ANA Card&#8221; and &#8220;JAL Card&#8221; are often mentioned as recommended cards for overseas travel. However, the processing fees are higher than in the past, and depending on the rank of the card, the point redemption rate is also getting worse.</figcaption></figure>
<div data-friday-nextpage-lead=" Which credit cards &quot;benefit&quot; from overseas travel?"></div>
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<h3><span class="strongInContent">Are there any credit cards that &#8220;benefit&#8221; from use overseas?</span></h3>
<p> In fact, most credit cards offer a 0.5% point reward rate (1 point per 200 yen). We looked to see if there are other credit cards that offer the same level of reward as the Rakuten Card.</p>
<p> For example, the &#8220;American Express Green Card&#8221; (monthly fee of 1,100 yen, first month free) offers 1% reduction in Membership Rewards points (1 point per 100 yen), which can be used to pay for purchases, transfer miles, and exchange points for items. The &#8220;Sumitomo Mitsui Card Platinum Preferred&#8221; (annual fee 33,000 yen, Visa) offers &#8220;Foreign Currency Shopping Privilege +2%&#8221; in addition to the regular point reduction rate, giving 2 points for every 100 yen including tax for overseas use only, so overseas travel is a good value. Furthermore, the &#8220;JCB CARD W&#8221; (free of charge for perpetuity) also offers a high point reduction rate of 1.0% or more.</p>
<p> It is important to remember separately that American Express&#8217; proprietary cards do not offer a local cash currency withdrawal service (overseas cash advance). Overseas cash advances are useful when you want to have a little cash on hand for tips, etc., but are not allowed with a professional card. However, co-branded cards such as the &#8220;Saison Pearl American Express Card&#8221; can be used for overseas cash advances.</p>
<figure id="attachment_415818" aria-describedby="caption-attachment-415818" style="width: 2841px" class="wp-caption alignnone"><a href="#" data-ident_hash="c058f4c5"><img src="https://res.cloudinary.com/fridaydigital/image/private/t_article_image/wpmedia/2025/02/d2cebcdaa0b145566ddb02f21c59c980.jpg" alt=""></a><figcaption id="caption-attachment-415818" class="wp-caption-text"> American Express (commonly known as &#8220;Amex&#8221;) offers a good point reward rate for overseas use, and its services for overseas travel are generous. However, a proprietary card has the inconvenience of not being able to provide overseas cash advances (PHOTO: AFRO)</figcaption></figure>
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<h3><span class="strongInContent"> Actual calculation!　The difference in administrative processing fees is &#8230;&#8230;</span></h3>
<p> How different would it be if the administrative processing fee is raised? Credit card usage overseas is charged at &#8220;international brand standard rate x foreign currency amount x overseas administrative fee.</p>
<p> Example: US$500 settled locally with Rakuten Card VISA, US$1 = 150 Japanese yen (rounded up to the nearest yen) <br>
Processing fee &#8220;2.20%&#8221;: 75,000 yen + 1,500 yen = 76,500 yen <br>
3.63% processing fee: 75,000 yen + 2,723 yen = 77,723 yen</p>
<p>2.From 20% to 3.63%, the price will increase by about 1,200 yen. The more money you pay overseas, the more expensive it will be if the administrative processing fee is high.</p>
<p> Incidentally, if the administrative processing fee is 2.20% and &#8220;1 US dollar → 155 Japanese yen,&#8221; the cost is 77,500 yen + 1,550 yen = 79,050 yen. The exchange rate is also important because a weak yen will result in a higher billing amount, no matter how low the administrative processing fee is.</p>
<figure id="attachment_415820" aria-describedby="caption-attachment-415820" style="width: 1800px" class="wp-caption alignnone"><a href="#" data-ident_hash="b78ef7e8"><img src="https://res.cloudinary.com/fridaydigital/image/private/t_article_image/wpmedia/2025/02/7681a0c38060e1bb4acc9af2b8dee8f2.jpg" alt=""></a><figcaption id="caption-attachment-415820" class="wp-caption-text"> The USD/JPY exchange rate exceeded 160 yen per dollar last July, but has recently been hovering around 150 yen per dollar. Image: Starbucks Reserve ® Roastery New York</figcaption></figure>
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<h3><span class="strongInContent"> In the &#8220;world with interest rates,&#8221; credit card reform is still going on. &#8230;&#8230; What is the expert&#8217;s &#8220;recommended card&#8221;?</span></h3>
<p> The &#8220;deterioration&#8221; of credit card services, not limited to Rakuten Card, continues unabated. Kenji Matsuoka, an expert on the credit card market, explains the reasons for the continued deterioration of credit card services and recommends cards for overseas travel.</p>
<p><span class="strongInContent"> The Bank of Japan has raised interest rates, and Japan is now in a &#8220;world with interest rates. For credit card companies, which are responsible for paying credit card users&#8217; bills, rising interest rates increase the cost of procuring funds, which puts pressure on their profits. As long as the Bank of Japan continues to raise interest rates, the deterioration of credit card services will continue.</span></p>
<p><span class="strongInContent"> In addition, there was originally a problem of the exchange rate at the time of credit card use differing from the exchange rate at the time of billing. This is because there is a &#8220;time lag&#8221; before the payment data reaches the credit card companies. During this time, if the yen is strong, you can buy something at a lower price, but if the yen is weak, the price may be higher.</span></p>
<p><span class="strongInContent"> The Sony Bank WALLET is a cash card with Visa debit that can be used overseas, and the amount of the transaction will be immediately debited from your Sony Bank foreign currency savings account at the exchange rate in effect at the time of the transaction.</span></p>
<p><span class="strongInContent"> While there is no point reward for overseas use, there is no administrative processing fee. The exchange rates are also lower than those of credit card companies, making the card more economical in total. The card can be used in 11 currencies, including dollars and euros.</span></p>


 Shikama Aki

 From March 1, the "processing fee" for overseas payments made with the Rakuten Card will be increased, and the "point redemption rate" will be halved depending on the international brand attached to the card. Why do the credit card reforms continue?

Points for overseas use &#8220;halved&#8221;&#8230;Is it a loss if you use your &#8220;Rakuten Card&#8221; overseas? Rakuten Card&#8221; overseas will lose half of its points when used overseas.

Points for overseas use “halved”…Is it a loss if you use your “Rakuten Card” overseas? Rakuten Card” overseas will lose half of its points when used overseas.

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