Account transfer is a pull payment, where the business collects, rather than the customer sending. For the general concept, see push vs. pull payments.
How kōza furikae works
Account transfer is deeply embedded in Japanese daily life, especially for utilities and other regular bills. Automatic withdrawal (kōza furikae) is the most common payment method among long-term residents; by some utility estimates, around 65% of households use it for at least one utility bill.1
Customer completes an application
The customer fills in an application form from the business, providing their bank account details and traditionally a personal seal (inkan) or signature.
2
Setup is processed
The authorisation is registered with the customer’s bank. This can take time: paper setups have historically taken one to two months, though online registration through providers is faster, often a few business days.
3
Regular withdrawals begin
Once active, the business withdraws the amount directly from the customer’s account on a set date each month, commonly a few days after each bill is issued.
During the setup period, customers usually keep paying by another method, such as at a convenience store, until the account transfer becomes active.
Key characteristics
Widely trusted for bills
Utilities, telecoms, and subscription services rely on account transfer as the default for recurring billing.
Often no fee to the customer
Banks typically charge no fee for account transfer, and some providers offer a small monthly discount as an incentive to set it up.
Slower to activate
Setup takes longer than instant methods, so it suits ongoing relationships rather than one-off purchases.
Card is an alternative
Many Japanese billers also accept recurring credit card payments (commonly Visa, Mastercard, and JCB) as an alternative to account transfer.