Money in Japan: Exchange, Cash, and Daily Use

Why it matters

In Japan, money management is not just a detail — it’s the backbone of your trip. The country is modern but still cash-oriented. With the right mix of cash, cards, and IC cards, you’ll avoid stress, skip unnecessary fees, and move smoothly through daily life.

1) Getting Yen: exchange vs. withdrawal

Exchange options

• Airports (NRT/HND/KIX/CTS): Convenient but usually weaker rates. Use for small starter amounts.
• Banks & Post Offices: Reliable, better rates than airports, but limited hours (commonly 9:00–15:00 weekdays).
• Exchange machines: Found in city centers and department stores; often competitive and multilingual.
• Hotels: Available at some high-end hotels, but rates are poor.

ATMs (often the smartest option)

• 7-Eleven ATMs (Seven Bank): Nationwide, 24h in most stores; accept Visa, Mastercard, Plus, Cirrus, AmEx, JCB, UnionPay.
• Japan Post Bank ATMs: Found in post offices and stations; reliable for foreign cards.
• Lawson & FamilyMart ATMs: Widely available, usually foreign-card friendly.

Travel tip:

For short stays, withdrawing at 7-Eleven ATMs is usually cheaper and more convenient than exchanging at the airport.
Long-term visitors may prefer bringing some foreign cash to exchange at banks or post offices, since exchange fees can be lower for larger amounts.
Avoid exchange kiosks in tourist areas – they often have poor rates.

Fees & limits

• Expect a local ATM fee (¥110–¥220) plus your home bank’s fee.
• Withdraw larger amounts less often to reduce costs.
• Carrying cash is safe in Japan — it’s normal to have ¥20,000–¥40,000 on hand.

2) Credit & Debit Cards: what really works

Networks

• Visa & Mastercard → Safest bet, accepted almost everywhere that takes cards.
• JCB → Strong domestic brand, good for malls and electronics stores.
• American Express → Accepted in hotels and upscale shops, limited in rural areas.
• UnionPay → Widely used by Chinese tourists, works well in cities.
• Less common: Diners Club, Discover.

Surcharges & traps

• Small-shop surcharge: Some smaller shops and hostels add a 2–5% fee for card use.
• Dynamic Currency Conversion (DCC): Some terminals ask if you want to pay in your home currency (USD/EUR). Always choose JPY. If you pick your home currency, the rate is worse and includes hidden fees.

Contactless (tap-to-pay)

• Works mainly in urban areas, big chains, and international hotels.
• Rural shops, small restaurants, and taxis may not have it. Be ready to insert chip+PIN or pay cash.

Important:

Even if your card works in hotels or big stores, many family-run restaurants, ryokan inns, and local shops still accept cash only.
Always carry a fallback of ¥20,000–¥40,000 in cash to avoid problems.

3) IC cards & mobile wallets

IC cards (reloadable smartcards)

• Suica, PASMO (Tokyo), ICOCA (Kansai): For trains, buses, vending machines, convenience stores, cafés, even lockers.
• Welcome Suica (for tourists):
  • No deposit, valid 28 days, designed for short stays.
  • Cannot be refunded when it expires — spend the balance.
  • Reloadable only with cash.
• Best strategy: Load ¥2,000–¥5,000 and use it daily; top up at stations or convenience stores.

Mobile IC cards

• Apple Wallet (iPhone): You can add Suica/PASMO/ICOCA to your phone and recharge with a compatible card stored in the Wallet. Not all foreign cards work — always keep a backup cash top-up.
• Google Pay: Limited compatibility for non-residents.
• Local-only wallets (PayPay, Line Pay, Rakuten Pay): Require Japanese bank accounts — tourists can’t use them.

Note: These domestic apps require a Japanese bank account, so tourists cannot use them.
Instead, stick with Suica/PASMO or Apple Wallet with a linked international card.

4) Daily habits & traveler tips

• Always carry cash: Even ¥10,000 bills are accepted everywhere, including small shops.
• Coins matter: Japan uses coins up to ¥500 ($3.50). Keep a coin purse for smooth payments.
• Exact change: Appreciated but not required; cashiers return change precisely.
• Splitting bills: In izakaya, say “betsu-betsu de” (separate bills).
• Tax-Free shopping: Show your passport. Minimum spend is typically ¥5,000/day per store. Note: From April 1, 2025, international shipping purchases no longer qualify as tax-free; and from November 2026, the system will change to post-purchase refunds.

Cultural note:

In Japan, it’s common to prepare exact change at convenience stores or small shops.
Coins are used frequently, and clerks will always place change neatly in a tray instead of handing it directly.

5) Safety & fraud prevention

• ATMs: Stick to trusted ones (7-Eleven, Japan Post, Lawson).
• Cover your PIN: Even in safe Japan, good practice.
• Avoid DCC: Always pay in JPY.
• Monitor statements: Check for extra conversion fees.
• Lost card: Report to your bank and visit a police kōban (neighborhood box) for assistance.
• Cash handling: Japan is safe, but use zipped pockets or a money belt in busy areas.

Reassurance:

Credit card fraud and ATM skimming are extremely rare in Japan compared to many countries.
The biggest risk for travelers is simply forgetting cash at an ATM or leaving coins behind at a store counter.

6) What to carry

• Arrival day: ¥20,000–¥30,000 in cash for transport, meals, emergencies.
• Daily city budget: ¥10,000–¥15,000 in cash + an IC card loaded with ¥2,000–¥5,000.
• Large purchases: Use credit cards (Visa/Mastercard) for electronics, hotels, or department stores.

Final thoughts

In Japan, cash keeps your trip moving, cards handle the big purchases, and IC cards unlock daily convenience. Learn to avoid hidden fees, choose yen at every terminal, and keep a balance of options. With this three-way strategy, money becomes a tool — not a problem.

Japan is shifting slowly towards digital payments, but cash remains essential for a smooth trip.
By combining ATMs, cards, and IC cards wisely, travelers can avoid stress and enjoy the best of both worlds.