The Best Way to Pay When Traveling Japan: Cash, Credit Card, or IC Card?
Japan is an incredible country to explore, with a rich culture and exciting experiences around every corner. Japan also has a reputation for being a cash-culture country. Therefore, it can be confusing when you are trying to figure out how much money to bring for your trip, and the best way to pay for things, while still achieving peace of mind and convenience during your travel.
Do you use an IC card like Pasmo or Suica, rely mainly on your credit cards, or just stick to good old-fashioned cash? It’s a tough call, and one that can impact your whole trip!
That’s why I have put together this post – to help you sort through the pros and cons of each option, as well as the solution which works for me in the past. You can decide which option suits you best.
So, let’s dive into the world of IC cards, credit cards, and cash – and get you prepared for the adventure of a lifetime!
IC Card
IC cards, such as Pasmo or Suica, are a convenient and efficient way to pay for transportation and other expenses in Japan. They are rechargeable, contactless smart cards that can be used on various forms of public transport such as trains, subways, buses, and even taxis.
IC cards work by simply touching the card to a reader at the ticket gate or payment terminal to pay, without the need for cash or paper tickets.
IC cards offer several advantages over traditional payment methods :
- Firstly, they are much more convenient as they eliminate the need to buy tickets or carry around cash. They also make it easy to transfer between different forms of public transportation without the hassle of purchasing a new ticket each time for each type of public transport.
- Secondly, IC cards can save you money as they offer discounts on fares for some routes and modes of transportation.
- Pasmo is one of the most popular IC cards used in Japan, along with its counterpart Suica. They are 2 of many types of IC cards available in Japan, and can be used interchangeably in most regions of Japan.
- Finally, IC cards can also be used at vending machines, convenience stores, and some restaurants, making them a versatile payment option.
IC cards can be purchased at train stations or convenience stores and can be recharged at these locations, as well as at designated machines and online.
Some things to keep in mind : While IC cards offer many benefits, they may not be accepted on shinkansen (bullet train), or to travel from one Japanese region to another, so it’s important to check beforehand.
Additionally, there are some restrictions : the maximum amount of money that can be charged onto the card is 20,000 yen, and there are fees for refunds or for not returning the card (Suica only; Pasmo has no refund fees).
However, overall, IC cards like Pasmo and Suica are a great option for travelers looking for a hassle-free and convenient way to pay for transportation and other expenses in Japan.
Summarized
Credit Card
Credit card is a handy way to pay for things without having to carry cash. It is a payment card issued by a bank, which allows the holder to make purchases or withdraw cash on credit, with the understanding that they will pay the bank back the borrowed amount plus interest at a later time.
A credit card can be obtained through various financial institutions in your own country, including banks and credit card companies. Applications typically are submitted in person or online, and require proof of income and other personal information.
Credit card offers several advantages, including convenience, security, and rewards programs. It eliminates the need to carry around cash, offer protection against fraud or loss of the card, and often come with perks like cash back or points rewards.
In Japan, credit cards are widely used and accepted at many restaurants, hotels, and shops, and are very common in bigger cities.
However, there are some things to keep in mind if you’re planning to use your credit card in Japan :
- First of all, not all businesses accept credit cards, especially in more rural areas or smaller shops.
- It’s also important to be aware of any foreign transaction fees that may apply when you use your card outside your home country. These fees can quickly add up and make your purchases more expensive than you anticipated.
- Another thing to consider is currency conversion. When you use your credit card in a foreign country like Japan, the amount you are charged will be converted into your home currency by your card issuer. This can sometimes result in additional fees or unfavorable exchange rates.
Overall, credit cards can be a great way to pay for things in Japan, but it’s important to understand the potential limitations and fees associated with their use. Make sure to check with your card issuer about any fees or charges that may apply, and keep track of your spending to avoid getting into debt.
Summarized
Cash
Cash is a popular and widely accepted form of payment in Japan, so it’s always a good idea to have some cash on hand during your travels. In fact, some smaller shops and restaurants in Japan only accept cash, so it’s essential to have some yen with you at all times.
One of the significant advantages of using cash in Japan is that it’s easy to keep track of your spending. When you use cash, you can see exactly how much money you’re spending, which can be helpful in sticking to a budget.
Additionally, using cash can also be a more efficient way to pay for small transactions, as it’s quicker to hand over cash than to wait for a card to process.
Another advantage is, unlike a credit card, there are no foreign transaction fees and ATM fees when you use cash.
However, there are also some disadvantages to using cash in Japan :
- One is that carrying large amounts of cash can be risky, as Japan has a low crime rate, but pickpocketing can still happen.
- Also, if you lose your cash, there’s no way to recover it.
- Exchanging currency can be expensive, and you may lose money due to unfavorable exchange rates.
- Using cash in Japan may be challenging for travelers who are not used to the Japanese currency (yen) or the cash culture. Japanese banknotes come in large denominations, and most types of coins are frequently used as well, which can be confusing and challenging for foreign tourists to handle.
Summarized
Comparison Chart Among IC Card, Credit Card, and Cash
See below for the quick tally of all pros and cons of each payment method. Depending on your travel plans, one might stand out as a better form than the others :
| Benefits and Limitations | IC Card | Credit Card | Cash (yen) |
|---|---|---|---|
| Accepted everywhere | Y | Y | |
| Easy to use across Japan | Y | Y | Y |
| Convenience | Y | Y | Y |
| Discounts on public transport fares | Y | ||
| Can be used to make large purchases | Y | ||
| Cash or point rewards | Y | ||
| Protection from loss, fraud, and theft | Y | ||
| Incurred ATM fees | Y | ||
| Incurred foreign transaction fees | Y | ||
| Incurred currency exchange/conversion fees | Y | Y | |
| Incurred ATM fees | Y | ||
| Required initial deposit and returning fees | Y | ||
| Can be used to pay for shinkansen (bullet train) and inter-city travels | Y | Y |
So What Payment Method is the Best to Have When I Travel Japan?
It looks like cash is the easiest and most widely accepted payment so far. While it can be a more efficient way to pay for small transactions and keep track of your spending, it can also be risky to carry large amounts of cash around due to pickpockets and theft.
Thus, there is no one-size-fits-all solution that could fulfill all your travel needs. That’s why, personally, as part of my pre-trip planning, I’d like to sit down and figure out how much my entire spending budget in Japan would be. Then, this is what I do every trip :
- I bring about 25 to 40 percent of that budget in cash with me, plus my no-fee credit card and a debit card, just in case. (The amount of cash really depends on whether I expect to have large purchases, or if any of my lodging requires cash payment at the time of check-in, etc.)
- This way, when I land in Japan, I have some cash with me to exchange into Japanese yen and use right away on foods, buying and loading my IC card (Pasmo or Suica card) to conveniently pay for public transportations, and other small daily purchases.
- As for larger transactions, like shopping or eating at nicer restaurants, I will use my no-fee credit cards. And if I need more cash, I will go to a convenience store and use my credit card or debit card to withdraw cash from the ATMs there.
The best of all worlds. Hah! Feel free to take this strategy and tweak it into different proportions (among cash vs. credit card) which works best for your travel plans. I hope this helps you in your travel planning. Have an awesome trip ahead!
If you have any questions, concerns, or just want to share your own travel stories, I’d love to hear from you! Please feel free to reach out to me at evelyn@japanoncloudnine.com, and let’s chat. Thank you for taking the time to read my blog post, and happy travels in Tokyo!
Other Posts You Might be Interested In
– Want to more about the awesome Pasmo and Suica IC cards mentioned above? Read my “Stress-Free Tokyo Travel with IC Cards : Everything You Need to Know” post here.
– Need a little help on what to pack for Japan in order to be prepared for most situations, while ensuring a memorable and pleasant vacation? Read my “Exploring Tokyo Japan: 11 Packing Essentials for a Stress-Free Trip” post here.
– Wonder what other fantastic tips you could get in order to navigate Tokyo and Japan in general smoothly and stress-free, with or without a JR Pass ? Read my “12 Ultimate Tips for Taking Tokyo’s Public Transport With Ease” post here.
