How to Pay for Things in Japan Using a Card
Japan has a blend of a modern economy and traditional payment customs, creating a unique payment culture. Although cash is still the most preferred and accepted mode of transaction, other forms of payment are gradually being embraced. The following is how to make payments in Japan by using cards, digital wallets and more.
Payment Options in Japan
The payment system of Japan is rather eclectic, where old and new purchasing options coexist in harmony. Even though Japan is one of the most technologically advanced nations, currency is still the most dominant method of payment. Tourists can find many ways to pay, including debit cards, credit cards, prepaid travel cards, and IC cards.
Paying with Your Debit Card
Debit cards are commonly used for withdrawing cash from ATMs in Japan, though they are not widely accepted as a method of payment in shops and restaurants. They come in handy during times of need and can help avert charges when the right type of card is used while traveling.
Acceptance: Limited; Primarily accepted at international chains, large retailers, and some restaurants.
Fees: Do not forget about the possibility of the foreign transaction and currency conversion fees.
Best Use Case: Withdrawing cash in case of an unforeseen need.
Tip: When searching for a travel debit card it is advisable to opt for Wise or ING as these two have low fees and better exchange rates.
Prepaid Travel Money Cards
These types of cards allow you to load currencies from your home country and withdraw the equivalent amount in yen at ATMs. They are useful for paying at hotels, transportation services, and some small businesses. However, they may come with fees such as loading charges and inactivity fees, so be mindful of these costs.
How They Work: Load your home currency before traveling and withdraw yen from ATMs in Japan.
Pros: Helps in managing currency fluctuations and offers additional security features.
Cons: It may include loading fees, ATM withdrawal, and inactivity charges.
Where to Get One: Available from banks, airlines, and currency exchange companies.
Paying with a Credit Card
Credit cards are widely accepted at hotels, major retailers, and restaurants in Japan. However, some small businesses may prefer cash. Be mindful of potential foreign transaction fees.
Acceptance: Credit cards are commonly used to pay for accommodations, shopping in department stores, and dining at larger restaurants. Most businesses only accept cash and this may tend to be the case with small businesses.
Fees: Transaction fees for foreign cards can be as high as 3%. This is because credit cards should not be used when withdrawing cash from ATMs.
IC cards
IC cards are rechargeable prepaid cards commonly used for transportation and small purchases in Japan. They offer convenience and can be used on trains, buses, vending machines, and even some shops and restaurants. Popular examples include Suica and Pasmo.
How They Work: Initially designed for transport, IC cards are now widely accepted at shops, vending machines, and tourist spots.
Popular IC Cards: Suica, Pasmo, ICOCA, and more.
Where to Buy: At all train stations across Japan.
Bonus Tip: Using IC cards at specific stores and tourist attractions may offer discounts.
Important Payment Tips
When paying by card, always choose to be charged in yen instead of your home currency.
Avoid Dynamic Currency Conversion (DCC)
When paying by card, always choose to be charged in yen instead of your home currency. This is because DCC comes with very unfavorable exchange rates.
Keep Cash on Hand
It is important to note that Japan predominantly relies on cash. It is advisable to always carry cash, especially when visiting rural areas or dealing with small businesses.
Be Aware of Transaction Limits
Be mindful of ATM withdrawal limits set by banks or card providers to avoid inconvenience. Understanding Japan’s payment methods can help prevent potential issues during your trip and ensure a pleasant experience. Embark on this adventure with a positive attitude, and don’t forget to take cash and other forms of payment with you, just in case you find yourself in a tough spot.
