Why You Need to Use Cash in Japan as a Tourist
Japan is renowned for being technologically advanced yet cash is still the most predominant payment method across the country. In fact, four out of five purchases are still made with cash.
With foreign-friendly ATMs still somewhat elusive and over-the-counter card payments patchy, the best way to take money to Japan involves combining a number of options.
Here's a comprehensive guide to ensure you have a smooth and enjoyable trip, covering getting cash in Japan, money exchange and ATMs.
Do You Need Cash in Japan?
Yes. You will need cash if you want to travel around Japan. It is a country were cash is still the most common way to pay for things. Despite the growing acceptance of cards, many establishments prefer or only accept cash. Here are some situations where having cash on hand is indispensable:
- Markets: Traditional markets, local food stalls, and flea markets typically operate on a cash-only basis.
- Tips: While tipping isn't customary in Japan, it's always done in cash if you choose to tip.
- Free Walking Tours: Guides often appreciate cash tips.
- Tourist Tax: Some accommodations may require a small tax payable in cash.
- Some Public Transport: Rural buses and local train lines may only accept cash.
- Toilets: Certain public restrooms may charge a small fee, and cash is the only accepted payment.
Carrying Cash
In Japan, carrying cash is common and quite safe due to the country's low crime rate. However, using a money belt or a secure wallet is always a good idea to keep your cash safe. The Japanese yen is available in both coins and banknotes, so it's helpful to have a coin purse as well.
Yen Denominations: Yen banknotes are available in 1,000, 2,000, 5,000, and 10,000 yen, and coins come in 1, 5, 10, 50, 100, and 500 yen. It's wise to carry smaller denominations for convenience in everyday transactions.
Cash Etiquette
Japan has specific etiquette when it comes to handling cash. Here's what you need to know:
- Using Trays: In many stores and restaurants, small trays are available at the cash register. Instead of handing your cash or card directly to the cashier, place it on the tray.
- Respecting the Yen: Keep your bills neat and avoid crumpling them. It's common to see people using a wallet designed to keep bills flat.
The Currencies They Accept
As an overseas traveler, you might wonder if you can use your home currency in Japan. Here's what you need to know:
Limited Acceptance: Euros, Australian or US dollars are not widely accepted in Japan. Unlike some countries that might take major foreign currencies in tourist-heavy areas, Japan typically requires transactions to be conducted in Japanese yen. This applies to everything from hotel stays to restaurant bills and shopping.
Getting Money Once You Have Landed
Withdrawing money from an ATM in Japan
Let’s get the tricky bit over with first: Most Japanese bank ATMs will not accept foreign cards (with the exception of SMBC Bank).
But ATMs located inside post offices and 7/11 stores (called 7 Bank ATMs) accept foreign cards. And as soon as you arrive in Japan, you’ll see this won’t present a problem; there are 7/11s on every street corner.
Just beware, Maestro cards with IC chips aren’t accepted at Japan Post ATMs and people have reported trouble using them elsewhere as well.
ATMs can be found in many 7-Eleven stores as well as airports, post offices, and other tourist hotspots.
Japanese bank ATMs can be fairly unreliable. Many won’t accept foreign cards while others are closed overnight or on the weekends. Even bank ATMs displaying Visa and Mastercard logos are iffy about international cards. Most bank ATMs also charge additional fees for withdrawals made outside operating hours.
Just a few branches of the major Japanese banks, such as SMBC and MUFG, have ATMs in major cities that will accept foreign cards. They will have signs in the window if they're foreign card friendly.
Your best bet is the Seven Bank ATMs found in 7-Elevens. These are open 24/7, have English instructions, and accept foreign-issued Visa, Mastercard, Plus, Maestro, American Express, Cirrus, and Union Pay cards.
Japan Post Bank ATMs are another option, identifiable by the JP logo. There are over 26,000 of these ATMs nationally inside every post office and some train stations, shopping centres, and supermarkets. They usually accept foreign-issued cards but may operate on business hours similar to the post office.
Keep in mind that both Seven Bank and Japan Post Bank ATMs have withdrawal limits per transaction (¥100,000 and ¥50,000 respectively). You might even face stricter limits imposed by your own bank or card company.
Japan has an extensive network of ATMs, but not all accept foreign cards. Here are some reliable options:
- 7-Eleven: ATMs in these convenience stores accept most foreign cards and are available 24/7.
- Post Offices: Many post offices have ATMs that cater to international cards.
- Major Banks: Banks like SMBC and Citibank offer ATMs that accept foreign cards.
- Airports: ATMs at major airports generally accept foreign cards.
Tips for Using ATMs
- Check Fees: Know any international transaction fees your home bank may charge.
- Withdrawal Limits: Note that ATMs may have daily withdrawal limits.
- Language Options: Most ATMs offer multiple language options, including English.
Avoiding ATM Pitfalls
While using ATMs in Japan is generally straightforward, here are a few tips to avoid common pitfalls:
- Plan Withdrawals: Withdraw larger amounts less frequently to minimise ATM fees.
- Timing: Some ATMs in Japan may not operate 24/7, especially in rural areas or smaller banks. Plan your withdrawals during business hours.
- Bank Partnerships: Check if your Australian bank has partnerships with Japanese banks. This can sometimes result in reduced or waived ATM fees.
Travellers Cheques
Traveller’s cheques tend to be outdated in the world of 21st century travel, but they’re more handy in Japan than elsewhere, especially given the difficulties with using ATMs.
In fact, in Japan, you may get more competitive exchange rates on traveller’s cheques than money changers and ATMs.
However, you may find yourself limited to where you can exchange these cheques. Try major banks, hotels, and department stores in the big cities.
Where to Exchange Money in Japan
If you’re exchanging any of the major currencies (including Australian dollars), you should be able to do so at major banks and the main branches of post offices.
Currency exchange offices such as The World Currency Shop have counters that can handle a broader selection of currencies in all the major cities.
While currency exchange may seem like an obvious option, it’s worth looking into alternatives. Two options – withdrawing cash from an ATM or organising your currency before you leave – will deal you better exchange rates than exchanging traveller’s cheques or cash in the country.
If you choose to exchange currency in Japan, be sure to have your passport on you as you’ll be asked for identification.
International airports also have currency exchange offices but these tend to have worse exchange rates and higher fees than offices in the cities.
Since Japan is still predominantly a cash-based society, it’s important to always have some notes and coins on hand.
You can take Aussie dollars from home to Japan, but you’ll be limited to where you can exchange the currency on arrival.
It’s best to exchange your money at one of the currency exchange booths in the airport. Currency exchange offices are harder to find in town – even in touristy areas.
You can also exchange money at major hotels, banks, and post offices but you’ll always face a relatively poor exchange rate and – in the case of banks and post offices – the process can take ages. So ultimately, the airport is your best choice.
You’re more likely to get a good deal if you withdraw money from an ATM or – even better – order your currency before leaving Australia.
Japan offers several options for exchanging money, each with its own advantages:
- Airports: Convenient for immediate needs, though exchange rates may not be the best.
- Banks: Provide competitive rates but may have limited operating hours.
- Post Offices: Widely available and offer reasonable rates.
- Authorized Money Changers: These are found in major cities and tourist areas and often offer good rates.
- Hotels: Convenient but typically have higher fees and less favorable rates.
Is It Better to Exchange Money in Japan or in Australia?
It’s almost always best to exchange AUD into yen in Australia before you start your travels. A good approach is to take a combination of cash from home and have a travel-friendly debit card to withdraw any further funds from ATMs. Avoid exchanging large amounts at airports if possible, as they offer less favourable rates.
Tips for Exchanging Money
- Check Rates and Fees: Always compare exchange rates and fees before exchanging money. Rates can vary significantly between different providers.
- Keep Receipts: When exchanging money, keep your receipt. Some places offer better rates for re-exchanging yen back to your home currency if you show the original receipt.
- Avoid Dynamic Currency Conversion: Some ATMs and card terminals offer the option to charge in your home currency. This can result in unfavorable exchange rates and additional fees. Always choose to be charged in yen.
Buying Japanese yen before you leave Australian shores can also save you money. But it all depends on where you get your Yen in Australia. There are three main options:
- Buy Yen online and have it delivered, or collect it in-store
- Buy from a money changer
- Buy at your home airport
Currency exchange offices at Australian airports are notorious for their poor rates and commissions, so we recommend avoiding that option entirely.
Online orders are often the best value, especially if you go with S Money, which offers the same rates listed on Google and XE.com.
