> ## Documentation Index
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# Account Transfer and Direct Debit in Japan

> How recurring payments work in Japan through kōza furikae (account transfer / direct debit), the standard way households pay regular bills.

Japan’s standard method for recurring payments is **account transfer**, known in Japanese as **kōza furikae** (口座振替). It is the local equivalent of direct debit: the customer authorises a business to withdraw a regular amount directly from their bank account. This page explains how it works, how it is set up, and how it compares with the recurring methods used in other markets.

<Note>
  Account transfer is a *pull* payment, where the business collects, rather than the customer sending. For the general concept, see [push vs. pull payments](/platform-overview/payment-concepts/push-vs-pull).
</Note>

## 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.

<Steps>
  <Step title="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.
  </Step>

  <Step title="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.
  </Step>

  <Step title="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.
  </Step>
</Steps>

<Note>
  During the setup period, customers usually keep paying by another method, such as at a convenience store, until the account transfer becomes active.
</Note>

## Key characteristics

<CardGroup cols={2}>
  <Card title="Widely trusted for bills" icon="file-invoice">
    Utilities, telecoms, and subscription services rely on account transfer as the default for recurring billing.
  </Card>

  <Card title="Often no fee to the customer" icon="circle-check">
    Banks typically charge no fee for account transfer, and some providers offer a small monthly discount as an incentive to set it up.
  </Card>

  <Card title="Slower to activate" icon="hourglass-half">
    Setup takes longer than instant methods, so it suits ongoing relationships rather than one-off purchases.
  </Card>

  <Card title="Card is an alternative" icon="credit-card">
    Many Japanese billers also accept recurring credit card payments (commonly Visa, Mastercard, and JCB) as an alternative to account transfer.
  </Card>
</CardGroup>

## How it compares with PayTo and ACH debit

|                          | **Japan: kōza furikae**          | **Australia: PayTo**              | **US: ACH debit**                    |
| ------------------------ | -------------------------------- | --------------------------------- | ------------------------------------ |
| **Type**                 | Account transfer / direct debit  | Real-time direct debit on the NPP | Direct debit over the ACH network    |
| **Setup speed**          | Days to weeks                    | Fast, approved in the banking app | Fast, once authorisation is captured |
| **Who holds permission** | The business / bank registration | The customer’s bank               | The business                         |
| **Settlement**           | Batch-based                      | Real-time                         | Batch-based (same-day ACH available) |
| **Customer control**     | Change via the business          | Manage in the banking app         | Change via the business              |

<Tip>
  For Japanese customers, account transfer is the familiar, trusted way to pay recurring bills. If you also offer recurring card billing, you cover customers who prefer to keep charges on a card for points or convenience.
</Tip>


## Related topics

- [PayTo vs. Direct Debit](/platform-overview/payment-concepts/payto-vs-direct-debit.md)
- [Bank Transfers in Japan](/platform-overview/payment-concepts/bank-transfers.md)
- [Push vs. Pull Payments](/platform-overview/payment-concepts/push-vs-pull.md)