Money in Japan: cash, cards, ATMs and the new tax-free refunds

Cash still matters

JNTO puts it plainly: Japan is very much a cash-based society, so keep cash on you (JNTO (opens in a new tab)). In Tokyo or Osaka you can pay by card for most things, but family-run restaurants, market stalls, temples and shrines, small guesthouses and rural buses often take cash only, and many places in the countryside, even hotels, may only accept cash (JNTO (opens in a new tab)).

The yen comes in notes of ¥1,000, ¥2,000, ¥5,000 and ¥10,000 and coins of ¥1, ¥5, ¥10, ¥50 and ¥500 (JNTO (opens in a new tab)). The ¥10,000 note is generally fine even for small purchases. Keep coins for buses, lockers and shrine offerings; a small coin purse helps.

ATMs that take foreign cards

Not every Japanese ATM takes overseas cards. The reliable ones are Seven Bank ATMs, found mostly in 7-Eleven stores, with screens in 12 languages, and Japan Post Bank ATMs in post offices; Visa, Mastercard, Maestro and Cirrus cards also work at SMBC bank branches (JNTO (opens in a new tab)). Not all ATMs run 24 hours, banks often close at 3 p.m., and ATMs often charge a withdrawal fee that can depend on the time of day (JNTO (opens in a new tab)).

• Tell your bank you are travelling, so your card is not blocked.
• Check your own bank's foreign withdrawal and currency fees; cards made for travel often charge less.
• Take out larger amounts less often if your bank charges per withdrawal.

Cards, contactless and phone payments

Credit, debit and prepaid cards of international brands are generally accepted across Japan; if you see no card logos, just ask (JNTO (opens in a new tab)). Cards work for shinkansen and Narita Express tickets, but not always for short train and subway fares, which is where an IC card comes in. Contactless payment works at most major convenience stores, with logos at the till (JNTO (opens in a new tab)).

Japan's own QR apps such as PayPay, LINE Pay, Rakuten Pay and Merpay are everywhere, but they are mostly set up for Japanese bank accounts. Wallets from home such as Apple Pay or Google Pay sometimes cannot be used, and ticket machines and IC card top-ups take cash only (JNTO (opens in a new tab)).

No tipping

Coming from the US, this takes some getting used to. In restaurants, taxis and hotels you pay the amount on the bill and nothing more.

Show your thanks with an "arigato gozaimashita" and a smile instead (JNTO (opens in a new tab)). If you leave money on the table, staff may well run after you to give it back.

Tax-free shopping from 1 November 2026

Japan's consumption tax used to come off at the till in tax-free shops. From 1 November 2026 that changes to a refund: you pay the full tax-inclusive price, then claim the tax back when you leave (JNTO (opens in a new tab)).

1. Keep every receipt and the goods together. Each receipt is processed separately: if one item from a receipt is missing, nothing on that receipt is refunded (JNTO (opens in a new tab)).
2. At the airport, before check-in, scan your passport at a tax-free terminal in the departure lobby. You must do this before checking your bags, because the goods must be with you.
3. Green screen: you are done. Red screen: take your purchases to the customs inspection area.
4. At Narita, Haneda, Kansai, Chubu, Fukuoka, New Chitose and Naha you can start the process through Visit Japan Web before security.
5. Take the goods out of Japan. Goods confirmed by customs must be exported without delay, or the tax is collected with a penalty (National Tax Agency (opens in a new tab)).

Putting it together

For a typical city trip: one card that charges low foreign fees, a second card as back-up, some yen from an airport ATM on arrival day, and an IC card for trains, buses, vending machines and convenience stores. If you plan long rail journeys, see whether a JR Pass saves money, and keep data on your phone for maps and payments with an eSIM.