Paying for Things in Japan: Cards, Apps & Cash

Why Japan Still Runs on Cash Despite Its High-Tech Reputation

You assume a country that sells you toilets with heated seats and bidet sprays, vending machine hot ramen, and robot hotels has left cash behind. It has not. The gap between Japan's tech image and the daily reality is wide enough to cost you a meal if you are not prepared. Small restaurants, shrines, temples, and rural bus routes demand physical yen. You need cash every day.

The real payment system is not plastic or phone. It is the rechargeable IC card ecosystem: Suica, Pasmo, Icoca, and their regional siblings. These cards handle transit, convenience store snacks, coin lockers, and vending machines. But they cannot buy a Shinkansen ticket between cities. That requires a separate paper ticket or an online booking.

The thing that most often goes wrong? You arrive with a card-only plan and cannot buy a ¥300 entry to a temple, pay for a ¥500 street food skewer, or board a bus in the countryside.

Japanese yen banknotes coins — Government of the Empire of Japan , Public domain via Wikimedia Commons

How Much Cash You Actually Need Per Day

Where Cards Work and Where They Do Not

Card acceptance is widespread at hotels, department stores, chain restaurants, and convenience stores. It is limited in rural areas. The cash-only categories: shrines and temples for entry fees, omamori charms, and omikuji fortune slips; small local restaurants; street food stalls; local markets; rural bus services not operated by major companies; small guesthouses (minshuku); and coin lockers at unmanned stations.

Which Card Brands and Contactless Methods to Bring

Visa and Mastercard are your best card brands. American Express has lower acceptance. Diners Club lower still. UnionPay is growing in tourist-focused businesses but limited elsewhere. Contactless payments work where cards are taken, so Apple Pay and Google Pay via Visa or Mastercard are fine at those places. But a temple does not care about your phone.

The IC Card is Your Real Wallet

Get Your Card at the Airport

If you land at Narita or Haneda, go to the JR East counter or a ticket machine. Buy a Welcome Suica (no deposit, 28-day expiry) or a PASMO PASSPORT (same terms). If you land at Kansai Airport, buy an ICOCA from JR West machines. If you have an iPhone, add Suica or PASMO to Apple Wallet before you leave home and load it with a credit card. The digital card works immediately.

Avoid the Rural Station Trap

The failure case: you arrive at a rural station with no IC card loaded, the ticket machine only takes cash, and the bus arrives in three minutes. Put the card on your phone before you board the plane.

Where to Find ATMs That Accept Foreign Cards

Plan Withdrawals Around Convenience Stores

The failure case: you are in a small town at 11pm with no convenience store nearby. The only ATM is at a Japan Post office, which closes at 7pm. The machine at the train station is a non-foreign-card model. You need ¥2,000 for a morning bus and a temple entry. Budget ahead by withdrawing enough cash when you see a 7-Eleven.

Carry a Coin Purse and Do Not Fear Large Notes

Japan is a high-cash-trust society. Nobody will blink at a ¥10,000 note for a ¥300 item. Carry a coin purse. The ¥500 coin is worth about $3.50 or €3.20. Daily transactions generate many coins, and you will need them for coin lockers and vending machines.

Tax-Free Shopping and the Coin You Will Actually Use

The Tax-Free Rules

Spend ¥5,000 (excluding tax) per store per day to get tax-free shopping. Consumables like food and cosmetics have a maximum of ¥500,000 per store per day. General goods like clothing and electronics have no stated upper limit. Show your passport at the register. Consumables get sealed in a bag and must leave Japan within 30 days unopened. The consumption tax is 10% standard. Food and non-alcoholic drinks for takeaway are taxed at 8%. Dine-in gets 10%.

Know Your Coins and Notes

The ¥1 coin is aluminum, ¥5 is brass, ¥10 is bronze, ¥50 is cupronickel, ¥100 is cupronickel, and ¥500 is nickel-brass bi-metallic since 2021. Banknotes: ¥1,000, ¥2,000 (rare), ¥5,000, ¥10,000. No tipping. It will be refused or cause confusion.

Common Questions

Can I survive in Japan using only a credit card?

No. You need cash for temple entry fees, small local restaurants, street food stalls, rural buses, and coin lockers at unmanned stations. Even in major cities, a cash-only ramen shop or a tiny okonomiyaki joint will turn you away. Carry at least ¥5,000 in small bills and coins at all times.

Can I use my IC card to ride the Shinkansen?

No. IC cards cannot be used for Shinkansen tickets between cities. You need a separate paper ticket or an online booking. However, you can use your IC card for local train travel within a city to reach the Shinkansen station.

Is it true I cannot buy a physical Suica or PASMO anymore?

Sales of unregistered Suica and PASMO cards are suspended since August 2023 due to a semiconductor shortage. You can still buy a registered named Suica or PASMO, or the Welcome Suica and PASMO PASSPORT at airports and major stations. Mobile Suica on Apple Wallet or Google Wallet works with no deposit required.

How much does it cost to withdraw cash at a 7-Eleven ATM?

Seven Bank charges ¥110 per ¥10,000 withdrawn. The limit is ¥100,000 per transaction. Japan Post Bank charges ¥220 per transaction with a ¥50,000 limit. E-net ATMs at FamilyMart charge ¥110 per ¥10,000. Lawson Bank ATMs also charge ¥110 per ¥10,000.

What happens if my IC card balance runs out and I have no cash to reload?

Most train stations have ticket machines that accept cash and some accept credit cards. If the machine only takes cash and you have none, you cannot board. Keep a minimum ¥2,000 balance on your IC card at all times to avoid being stranded at a rural ticket gate.