Money in Japan: Cash, Cards, ATMs, and Tax-Free Shopping
Japan has a reputation as a cash society, and that's still partly true — but the picture has shifted a lot in recent years. Here's a realistic sense of how to handle money day to day, without over-preparing or under-preparing.
Cash vs. Card: What to Actually Expect
Major cities, chain stores, department stores, and most hotels take credit cards without issue. But smaller restaurants, street food stalls, rural shops, some temples/shrines (entry fees, omamori charms), and older establishments are still cash-only or cash-preferred. The safest approach is to carry a reasonable amount of cash at all times — enough to cover a meal, transport, and small purchases — rather than assuming card acceptance everywhere, especially outside major cities.
Where to Exchange Currency
Airport currency exchange counters are convenient but usually offer worse rates than banks or post offices in the city. If you land with some local currency already in hand for the first day, that's usually enough — exchange more at a bank, post office, or dedicated exchange counter once you're settled rather than at the airport premium rate. Currency exchange machines are also common in tourist areas of major cities.
Using ATMs with a Foreign Card
Not every ATM in Japan accepts foreign-issued cards, which surprises a lot of visitors. The most reliable options are 7-Eleven ATMs (found in nearly every 7-Eleven store nationwide, open 24 hours) and Japan Post Bank ATMs (in post offices, with more limited hours). Both are set up specifically for international cards and offer an English-language interface. Bank ATMs at regular Japanese banks often do not accept foreign cards, so don't count on finding one on short notice outside of these two networks.
IC Cards for Small, Fast Purchases
Beyond transit, IC cards (Suica, Pasmo, ICOCA — see the Getting Around guide) double as tap-to-pay for convenience stores, vending machines, some restaurants, and coin lockers. Topping one up with cash or a linked card and using it for small daily purchases avoids fumbling with coins and is genuinely one of the more convenient parts of traveling in Japan.
Tax-Free Shopping for Tourists
Many stores — especially department stores, electronics retailers, and larger shops in tourist areas — offer tax-free purchases for visitors on a tourist visa, usually above a minimum spend threshold. You'll need your passport at the register, and the item is typically sealed in a bag that shouldn't be opened until you leave the country. Look for "Tax-Free" signage in shop windows; not every store participates, and rules/thresholds can change, so it's worth asking at checkout if you're unsure.
Tipping (or Rather, Not Tipping)
Tipping is not customary in Japan and can even cause confusion — service staff may chase you down to return money they assume you left behind by mistake. Restaurant, taxi, and hotel bills already reflect the full price; excellent service is simply the norm rather than something tipped for separately. The one common exception is a discretionary payment (kokorozuke) sometimes given to a ryokan's nakai (attendant) for exceptional personalized service, but this isn't expected of tourists and isn't something to worry about arranging.
Roughly Budgeting a Daily Spend
Costs vary enormously by travel style, but as a loose planning reference: a budget-conscious day (hostel or capsule hotel, convenience-store or casual meals, local transit) might run notably lower than a mid-range day (business hotel, sit-down restaurants, some taxis and paid attractions), which in turn is well below a higher-end day involving ryokan stays and kaiseki dining. Treat any specific figure as a starting point rather than a promise — prices shift, and regional cost of living (Tokyo vs. rural areas) makes a real difference.