Money in Japan: Banks, ATMs, cards & currency exchange

Japan's vibrant cities and serene countryside attract millions of visitors from around the globe. Whether you're drawn to the high-speed bullet trains, world-renowned sushi, or picturesque ski resorts, Japan offers a unique and unforgettable travel experience.

If you're planning a trip to Japan, you'll need Japanese Yen (JPY). While Japan is a developed nation, cash is still widely used, especially outside of major cities. This guide provides an overview of the Japanese currency and banking system, helping you get and spend Yen during your travels. It will also show how Wise can be your best ally to manage your money on your travels abroad.

Currency in Japan

The official currency of Japan is the Japanese Yen (JPY). It's one of the most traded currencies in the world.

Japanese Yen Characteristics

Japanese coins are designed with distinct features, including different sizes, patterns, and even holes in the center of some coins (the 5 and 50 Yen coins), making them easy to differentiate.

Foreign currencies are generally not accepted in Japan. You'll need to exchange your money for Yen.

Exchanging Currency in Japan

Research exchange rates before your trip. You might find better rates in Japan than in your home country, but it's always best to be informed.

Know the Mid-Market Rate

Before exchanging any money, it's crucial to know the mid-market rate (the same one you usually see on Google). This is the "real" exchange rate – the midpoint between the buy and sell rates on the global currency market. Tourist exchange rates are always based on this rate, adding their fees.

Avoid Airport and Hotel Exchanges (Mostly)

While you can exchange money at airports and hotels, the exchange rates are typically less favorable. If you need Yen immediately upon arrival, exchange only a small amount. ATMs are often a better option at airports. For larger amounts, wait until you can find a bank or currency exchange service in the city.

Beware of Hidden Fees

Be cautious of currency exchange services that advertise "Zero Commission" or "No Fees." They often make their profit by offering a less favorable exchange rate. Always compare the offered rate to the mid-market rate to understand the true cost.

Bring Clean, Undamaged Banknotes

If you're exchanging cash in Japan, ensure your banknotes are in good condition – clean, crisp, and without any tears or significant markings. Damaged notes may be rejected.

Using Traveller's Checks in Japan

Traveller's Checks are rarely accepted for direct payment in Japan. You'll need to cash them at a bank or, potentially, a currency exchange service, and the rates are usually not advantageous. Not all banks or exchange services will accept them. ATMs and debit/credit cards are generally a much more convenient and cost-effective option.

Using Credit Cards and Debit Cards in Japan

Cash is Still King in Many Places

While credit and debit card acceptance is increasing, Japan remains a largely cash-based society, especially outside of major cities and tourist areas. Smaller businesses, traditional restaurants, and local shops often only accept cash. It's essential to carry sufficient Yen at all times.

Major credit cards (Visa, Mastercard, American Express) are generally accepted at larger hotels, department stores, and restaurants that cater to international visitors.

Inform Your Bank of Your Travel Plans

Notify your bank of your travel dates to Japan before you leave to avoid having your card blocked due to suspected fraud.

Decline Dynamic Currency Conversion (DCC)

When using your credit or debit card, you may be offered the option to be charged in your home currency. This is Dynamic Currency Conversion (DCC). Always decline DCC. It allows the merchant's bank or ATM to set the exchange rate, which is almost always worse than the rate your own bank would provide. Always choose to be charged in the local currency (JPY).

ATMs in Japan

ATMs are widely available in Japan, especially in urban areas. Use these locator tools to find ATMs near you:

• Visa ATM Locator
• Mastercard ATM Locator
• Amex ATM Locator

Important Note about Japanese ATMs: Not all Japanese ATMs accept foreign cards. Look for ATMs with international network logos (Visa, Mastercard, Cirrus, Plus, etc.). ATMs at 7-Eleven convenience stores, post offices (Japan Post Bank), and some major banks (like SMBC Trust Bank PRESTIA) are generally the most reliable for foreign cards.

Check Your Bank's Fees

Contact your home bank to inquire about their fees for international ATM withdrawals and foreign transactions.

Decline DCC at ATMs

As with credit/debit card transactions, ATMs may offer DCC. Always choose to be charged in the local currency (JPY) to get the best exchange rate from your bank.

Withdrawal Limits

Be aware that some Japanese ATMs may have relatively low withdrawal limits per transaction.

Banks in Japan

Japan's banking system is dominated by three "megabanks":

Three Major Retail Banks in Japan ("Megabanks")

• MUFG (Mitsubishi UFJ Financial Group)
• Mizuho Bank
• SMBC (Sumitomo Mitsui Banking Corporation)

International Banks Operating in Japan

• Citibank Japan
• HSBC Japan
• Standard Chartered Bank Japan
• JP Morgan

Accessing Your Money in Japan with Wise

While traditional banking methods are available, they can often be expensive and inconvenient. Wise offers a streamlined, cost-effective way to manage your money in Japan:

• Mid Market Rate: Wise uses the mid-market exchange rate, the same as the one you usually see on Google, for all conversions, ensuring you get a fair exchange without hidden markups.
• Low, Transparent Fees: Wise charges a small, upfront fee for currency conversion, which is clearly displayed before you make a transaction.
• Wise card: The Wise card, available to users of supported countries, can enable you to swipe like a local on your travels on Japan.
• Send money to Japan easily: Send money easily to a local accounts with the same mid-market rate and low, transparent fees.

Get started with Wise 🚀

By using Wise, you can save money on currency exchange and international money transfers, making your trip to Japan more affordable.