Using credit cards in Japan: What to know

Quick insights

• Major credit cards are widely accepted in Japan, especially in large cities.
• Cash remains a very popular payment method in Japan.
• Newer digital payments tend to be less popular in Japan than other neighboring Asian countries.

Japan is often thought of as a modern country. With the dazzling neon lights of Tokyo, bullet trains and robot waiters, traveling through Japan may feel like you’ve stepped foot into the future. That’s why it may be surprising to learn that when it comes to paying for things in Japan, you might find yourself relying on more traditional means, like cash.

In this article, we’ll cover how and when to use credit cards and what other payment methods are common in the Land of the Rising Sun.

Credit cards in Japan

Credit cards are becoming an increasingly popular payment option in Japan, but the country as a whole still embraces physical currency. The Japanese yen is still the preferred payment type for many locals and businesses.

In large metropolitan centers, like Tokyo or Osaka, you can reliably pay with credit and debit cards. Most major cards—like Visa and Mastercard—are usually accepted in big cities and tourist-friendly areas. But cash may be preferred, or required, when traveling to remote areas or shopping at smaller, local merchants.

Merchants may indicate at the entrance of their store or near the register if they accept electronic payments or cash only. Some popular Japanese landmarks, including castles, Buddhist temples and Shinto shrines may only accept cash at the entrance. Japan also has a thriving street food culture where cash is often the preferred payment.  

You may find that having a mix of cash and cards provides the most seamless experience when paying for things in Japan.

Other payment methods

Japan has been slower to adopt alternative payment methods than some of its neighboring countries, like China and South Korea. Cash is still very prevalent, and credit card use is higher than other digital payment methods, like digital wallets and contactless payments.

However, their adoption is growing, and cashless transactions are becoming more common. Foreigners who use mobile wallets like Apple Pay and Google Pay may find establishments—especially chain retail stores and those in large cities—that accept these forms of digital payment.

Benefits of using credit cards in Japan

There are some benefits to using credit cards while traveling, including:

• Ease of use: It is often simpler to swipe a card than it is to count cash at a register, especially in a currency you’re not used to.
• Safety: Cash can get lost or stolen. Whereas if your card is lost or stolen, you can lock your credit card and monitor its usage.
• Rewards: Using your card abroad may earn points or miles, depending on the card. If using a travel credit card, you may even earn higher rewards for travel-related purchases.  

Payment acceptance is up to the merchant, so you may want cash to fall back on even if you plan to use your credit card while abroad.

ATM and transaction fees while traveling

Getting local currency, paying with a card or electronically converting your U.S. dollars to yen may incur fees. Common fees include foreign transaction fees, currency conversion fees, dynamic currency conversion (DCC) fees and ATM fees:

Foreign transaction fees

You may be charged foreign transaction fees when using your credit or debit card abroad. These fees can vary depending on your credit issuer, bank and the purchase amount. The rate for foreign transaction fees is typically 1-3% of the entire purchase, which might include shipping costs and taxes.

However, some credit cards do not charge foreign transaction fees. Check your cardmember agreement for details on international purchases. If you travel often, it may be worth looking into a travel rewards credit card that doesn’t charge foreign transaction fees. 

Currency conversion fees

When you exchange one currency for another, you may be charged a currency conversion fee. These fees can be applied when you make purchases abroad using a credit or debit card or withdraw cash from an ATM or exchange currency. The amount can vary, but these fees are typically 1-3% of the transaction amount.

Dynamic currency conversion (DCC) fees

Merchants may provide the option to use a DCC service that allows a transaction to be processed in the cardmember’s home currency. The customer pays fees for this service when making a purchase and may receive an unfavorable exchange rate.

You may be able to avoid DCC fees when using a credit card by selecting to pay in the local currency. When you pay in yen, you’ll still be subject to the fees and exchange rates associated with your card, but often, those terms are more favorable than what DCC services charge. 

ATM fees

You may be charged fees when withdrawing cash from ATMs abroad. The ATM operator will likely charge a flat fee as well as your local bank. In addition, you may be charged a foreign transaction fee or currency conversion fee that is a percentage fee tied to the total amount you withdrew.

Often, using a currency exchange at the airport or in a hotel will not provide the lowest rates. You may find better rates when getting Japanese currency at your local bank or credit union.

In summary

In general, Japan favors more traditional forms of payment. Cash is widely used when making purchases, especially outside of large cities. Credit card use is still common, but newer forms of digital payments—like mobile payments and digital wallets—are less common than other payment types.

When using your credit card in Japan, you may incur fees. However, there are several credit cards that do not charge foreign transaction fees. These cards may also provide additional travel perks, purchase protections and rewards. If you travel frequently, you may want to consider a travel rewards credit card.