Money, Cash and Cards in Japan — Complete Guide

One thing that surprises visitors to Japan is its unique relationship with money: despite being a high-tech country, Japan still relies heavily on cash. Small restaurants, temples, markets, and many attractions accept cash only, while credit cards and contactless payment have expanded significantly in recent years — especially in cities. This guide covers how much cash to carry, where to withdraw it, when cards work, what IC cards are, and how to claim a tax refund.

Our Recommendation

The golden rule: always keep cash on hand — at least ¥10,000–20,000 (≈ $67–133). Use an IC card like Suica for transport and small purchases at convenience stores, and a credit card for larger purchases and hotels. Withdraw cash from 7-Eleven or Japan Post ATMs — they accept foreign cards. And don’t expect tips — they simply don’t exist in Japan.

Japan Still Loves Cash

Contrary to its tech-forward image, cash is still king in Japan, especially outside major cities. Family restaurants, food stalls, temples, traditional markets, small ryokans, and many attractions accept cash only. The reasons are cultural and historical — high trust, low crime, and habit. Even if you pay by card everywhere at home, in Japan you must keep cash available at all times.

IC Cards — Suica, Pasmo, and ICOCA

IC cards like Suica, Pasmo, and ICOCA are Japan’s ingenious solution: a rechargeable card for fast payment. Tap it at train station gates, buses, convenience stores, vending machines, and many shops. Top them up with cash at station machines. You can also load a digital Suica on your phone via Apple Pay or Google Pay. This is the most convenient method for small payments and transport — see our Suica & Pasmo guide for full details.

Credit Cards — Where They Are Accepted

Credit cards (Visa, Mastercard) are accepted at hotels, major chains, department stores, large restaurants, and major train stations. American Express is less common. But small restaurants, stalls, and many rural spots do not accept cards at all. Use a card with no foreign transaction fees to save money. Always keep cash as a backup — never rely on a card alone.

ATMs — Where to Withdraw

Not all Japanese ATMs accept foreign cards. The most reliable: 7-Eleven ATMs (Seven Bank) found in every convenience store, and Japan Post Bank ATMs. They operate 24/7, display English, and accept international Visa and Mastercard. Local bank ATMs generally do not accept foreign cards. Check your bank’s withdrawal fee and withdraw larger amounts less often to minimize charges.

How Much Cash to Carry

Keep ¥10,000–30,000 (≈ $67–200) in cash at any time, depending on your plans. For a normal day of food, transport, and entry fees — ¥10,000–15,000 (≈ $67–100) is enough. If you plan a ryokan, a fancy restaurant, or shopping — bring more. Japanese banknotes come in ¥1,000, ¥5,000, and ¥10,000 denominations; coins go up to ¥500. Save coins for convenience stores, vending machines, and temple offerings.

Contactless Payment and Apple/Google Pay

In major cities, contactless payment is expanding. You can add Suica to your digital wallet (Apple Pay or Google Pay) and pay by phone on transport and in convenience stores — very convenient. NFC-enabled credit cards work in some locations. Still, don’t rely on this alone outside cities, where cash still dominates.

Tourist Tax Refund — Tax-Free Shopping

Tourists are entitled to a VAT exemption (10%) on purchases over ¥5,000 (≈ $33) at shops displaying a Tax-Free sign. Show your passport at the register and the tax is deducted on the spot or refunded. Keep receipts and products sealed until you leave the country. This saves 10% on electronics, cosmetics, clothing, and souvenirs. Ask in the shop if Tax-Free is available.

Tipping, Otoshi, and Hidden Charges

A few key points: there is no tipping in Japan — not at restaurants, taxis, or hotels. Do not leave money on the table; it can confuse staff. Public restrooms are free and clean. Some restaurants charge otoshi (a small first course, similar to a cover charge) at izakayas — this is normal. Check your card’s foreign transaction fee in advance. See also Japan’s food guide for dining tips.

Estimated Daily Budget

A rough estimate per person per day (excluding flights and accommodation): Budget — ¥5,000–8,000 (≈ $33–53) — convenience stores, ramen, public transport. Mid-range — ¥10,000–15,000 (≈ $67–100) — restaurants, entry fees, occasional taxi. Luxury — ¥20,000+ (≈ $133+) — kaiseki dinners, ryokan stays, shopping. Accommodation separately: ¥8,000–15,000 (≈ $53–100) per night at mid-range — check current hotel rates. See the first-timer’s Japan guide for full planning.

Common Money Mistakes

Mistakes to avoid: arriving without cash and finding the restaurant is card-free; using a local bank ATM that won’t accept foreign cards; forgetting to notify your bank about the trip abroad; exchanging money at the airport at a poor rate; and not using the tax refund on large purchases. A little financial prep before the trip prevents unnecessary headaches.

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Next steps: read the Suica & Pasmo guide to manage your IC card, combine your trip with an overnight at a ryokan and onsen, and start with the first-timer’s Japan guide for the full picture.