Using a credit card in Japan

Can you use a credit card in Japan? Yes, though a cash culture lingers.

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Chris Lilly

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Using a credit card in Japan isn’t as common as it is in most first-world countries. Despite an economy driven by technology, Japan remains a largely cash-based society. Credit and debit cards are becoming more popular, but if your card is issued by a bank outside of Japan, using it might not be as easy as you think.

If you’re travelling in a big city like Tokyo, Yokohama or Osaka, you can expect most big hotels and shops to accept credit cards. And with the 2020 Tokyo Olympic Games on the horizon, more businesses should start following suit.

Cash in Japan

You’ll find that large shops, supermarkets and hotels accept credit and debit cards, as will most taxis. But smaller souvenir shops, neighbourhood restaurants, local market stalls and traditional Japanese ryokan limit their transactions to cash. This is also the case for most guesthouses operated by private owners.

If you buy a low-cost item and pay with a large bill — such as a 10,000 yen note — you’ll typically have no problem receiving change. Whether you’re limiting your visit to a big city or plan to travel to rural areas, make sure you carry enough cash for your daily needs.

Cash machines in Japan

Cash machines (ATMs) are a common sight in big cities, but you’ll be hard pressed to find one that accepts international credit or debit cards. You can however typically use your UK cards at post offices, however, and in 7-Eleven shops.

Unlike in most countries, many Japanese ATMs don’t operate around the clock. Instead, they’re often switched off at night — typically at 7pm on weekdays and 5pm on weekends. Some 7-Eleven ATMs operate 24/7.

Can I use chip and pin card in Japan?

Chip and pin is widely used in Japan. If you never got round to signing your card, however, do this before you leave!

Both magnetic-stripe and chip and pin credit cards are common in Japan. An increasing number of Japanese banks are switching over to chip-enabled cards because they offer enhanced security.

Potential credit card fees in Japan

When you find a merchant that accepts credit cards in Japan, you may face a handful of fees.

Foreign transaction fees

British credit card issuers typically charge a fee equivalent to 1% to 3% of your transaction, so carefully review your card’s fine print to avoid statement surprises. Some cards designed for travel come with no foreign transaction fees, so this could be a good time to switch.

Learn more about cards designed for overseas spending

Currency conversion fees

If a retailer offers to bill your credit card in Sterling, dynamic currency conversion comes into play. While this might sound like a good deal, you’ll actually end up getting a less-than-favourable exchange rate, and you might also end up paying currency conversion fees. Whenever you’re presented with an option, choose to pay in yen.

Cash advance fees

Using your credit card to withdraw money from an ATM may not make sense unless it’s a bona fide emergency. Each time you withdraw funds from an ATM, you’re likely to pay a cash advance fee. Your APR for cash advances is typically higher than your purchase APR, and you’ll often get no grace period on interest — instead, you start paying interest immediately. Again, some cards designed for overseas spending will waive this fee.

The table below serves as an example of how much extra you may pay to use your credit card for in Japan.

section of credit card summary box document

Additionally you can get an idea of costs by using these online currency conversion tools from Mastercard and Visa.

What is a cash advance fee?

A cash advance fee is assessed when you withdraw cash from your credit card. It’s usually the greater of a flat fee or a percentage of the transaction. For example, “2.5% of the transaction, minimum £3.00”.

Is it safe to use my credit card in Japan?

Crime levels in Japan are very low, and it’s typically safe to take public transportation or walk about after dark. However, you should maintain the same caution that you would in the UK and use your credit card carefully.

  • Keep your PIN safe. When using the keypad, shield it with your hand to keep your PIN safe from curious eyes and hidden cameras.
  • Choose ATMs carefully. Don’t use an ATM in a secluded area, and ideally stick to ones found in crowded places or post offices.
  • Keep an eye for skimmers. If your card does not enter the ATM slot as smoothly as it usually does or if using the keypad feels unusual, cancel your transaction immediately. Someone might have installed a card skimmer on the ATM.

Keeping your credit card (physically) safe

Even though levels of crime in Japan are low, you wouldn’t want to become the victim of an isolated incident. Keep your credit cards with you at all times, and don’t let them out of your sight — even when paying bills at hotels, restaurants or bars. Using a neck pouch can help keep your cash, cards and travel documents close to you, no matter where you go.

How to prepare before travelling to Japan

  1. Select Visa or Mastercard. Visa cards are the most commonly accepted, followed closely by Mastercard. American Express is next in line, but finding businesses that accept these cards will not be easy. Cirrus and Maestro cards find very few takers.
  2. Get a card with no foreign transaction fees. Depending on how much you plan to spend, you could save money by getting a card with no foreign transaction fees.
  3. Inform your bank. If you haven’t used your card outside of the US in the past, let your bank know that you’re travelling to Japan. This way, your bank will not block your card because of suspicious activity when you use it overseas.
  4. Set up a PIN for ATMs. If you plan to use your credit card to withdraw money at an ATM while in Japan, you’ll probably need to set a PIN. It’s a lot easier to set up your PIN while you’re still in the UK, since you might need to call your bank or access your online account. Some credit cards don’t let you set up a PIN instantly, and might mail your PIN to you after you request one.
  5. Keep emergency numbers handy. Find out what numbers you’ll need to call if you lose your card or end up needing an emergency replacement. Keep them accessible at all times.
  6. Identify where you’ll get money from. Given that you’ll need cash in different scenarios, find out where you can get some when you need it. If you plan to spend some time in the country, you can easily ensure that you have access to cash by opening a savings account with the post office.

Next steps

Before you travel to Japan, ask yourself these questions to make your stay stress free.

  • Which cards should I take? Go with either Visa or Mastercard, and consider taking two or more cards with you. Ideally, use cards with no foreign transaction fees.
  • Have I informed my bank? If you fail to inform your bank, you may have to deal with a blocked card during your travel.
  • What kind of fees am I looking at? A little information ahead of time can save you considerable strife later on.
  • What’s my source of cash? When in Japan, you cannot do without using cash unless you’re limiting your movement to the best places in town. So plan to keep your cash flow in place.

Once you’ve established where you can use your credit card and where you’ll need cash, you can relax and focus on enjoying your stay in Japan!

Compare cards with fee-free currency conversion in Japan

Table: sorted by representative APR, promoted deals first
Updated daily
Name Product Finder score Finder score Purchases Annual/monthly fees Initial credit limits Representative APR Incentive Link
The Royal Bank Credit Card
The Royal Bank Credit Card
4.5
★★★★★
★★★★★
Expert analysis
12.9%
£0
Min. limit £250, max. limit not specified.
12.9% APR (variable)
Representative example: When you spend £1,200 at a purchase rate of 12.9% (variable) p.a., your representative rate is 12.9% APR (variable).
Go to site
Read review
NatWest Credit Card
NatWest Credit Card
4.5
★★★★★
★★★★★
Expert analysis
12.9%
£0
Min. limit £250, max. limit not specified.
12.9% APR (variable)
Representative example: When you spend £1,200 at a purchase rate of 12.9% (variable) p.a., your representative rate is 12.9% APR (variable).
Go to site
Read review
Santander All in One Credit Card
Santander All in One Credit Card
4.5
★★★★★
★★★★★
Expert analysis
0% for 15 months reverting to 23.9%
£3 per month
Min. limit £500, max. limit not specified.
29.8% APR (variable)
0.5% after £1 of monthly spend. Maximum of £10 cashback paid per month. Cashback paid Monthly into Card Account. Maximum spend for cashback purposes is limited to credit limit.
Representative example: When you spend £1,200 at a purchase rate of 23.9% (variable) p.a. with a fee of £3 per month, your representative rate is 29.8% APR (variable).
Check eligibility
Read review
118 118 Money Guaranteed Rate Card
118 118 Money Guaranteed Rate Card
3.5
★★★★★
★★★★★
Expert analysis
34%
£0
Min. limit £500, max. limit not specified.
34% APR (variable)
Representative example: When you spend £1,200 at a purchase rate of 34% (variable) p.a., your representative rate is 34% APR (variable).
Check eligibility
Read review
NatWest Reward Black Credit Card
NatWest Reward Black Credit Card
4.0
★★★★★
★★★★★
Expert analysis
21.9%
£84 per annum. Reward Black Current Account holders: Year 2 onwards - £0 per annum
Min. limit £5,000, max. limit not specified.
40.7% APR (variable)
You'll earn 1% back at supermarkets and 0.5% back everywhere else, including supermarket petrol stations. At selected retailers, you could earn 1-15% back.
Representative example: When you spend £1,200 at a purchase rate of 21.9% (variable) p.a. with a fee of £84 per annum. Reward Black Current Account holders: Year 2 onwards - £0 per annum, your representative rate is 40.7% APR (variable).
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Read review
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