Paying in Japan: A First-Timer’s Guide to Yen & Transactions

Japan looks like a cashless country, with bullet trains, robot-like toilets and vending machines on every corner. Then you sit down at a tiny ramen counter, the owner points at a cash-only ticket machine, and your credit card is useless. In 2026 there is a second surprise. The easy tourist IC card many guides still recommend is hard to buy. This guide shows you how to pay for things in Japan without stress, using the right mix of cash, an IC card and a credit card.

Meet the Yen: Bills and Coins You Will Actually Handle

The local currency is the Japanese Yen (JPY). Learn the bills and coins before you land and you will pay faster and feel more confident at the register.

• Bills: JPY 1,000, JPY 5,000 and JPY 10,000. A JPY 2,000 bill exists but you will rarely see one.
• Coins: JPY 1, JPY 5, JPY 10, JPY 50, JPY 100 and JPY 500.

Two coins have a hole in the middle: the JPY 5 and the JPY 50. The JPY 5 is the one with the rice plant design, and it is easy to spot once you know. Coins pile up fast because even small purchases create change. Keep a small pouch for them. You will need JPY 100 coins for lockers and JPY 500 coins for vending machines, so do not dump them on the first day.

Where Cash Still Rules in 2026

Cash is still a fundamental payment method in Japan, especially outside the big cities. These are the places where you will need it most:

• Small businesses: Many traditional restaurants, especially ramen shops and izakayas, plus local shops, cafes and guesthouses (ryokan and minshuku), take cash only.
• Rural areas: Outside Tokyo, Osaka and Kyoto, credit card acceptance drops sharply.
• Vending machines: Newer machines accept IC cards or mobile payments, but many still want coins or JPY 1,000 bills.
• Temples and shrines: Entry fees and omamori (charms) are often cash only.
• Taxis: Cards are increasingly accepted, but cash is a safe backup in smaller towns or for short fares.
• Coin lockers: Many station and tourist-spot lockers need JPY 100 coins.

Picture a ramen shop at midnight in a Shinjuku back alley. Steam rises from the pork broth, the counter seats only eight people, and you buy your meal from a machine by the door that only swallows bills and coins. This scene is common. My rule: always carry JPY 10,000 to JPY 20,000 in cash for daily expenses.

The IC Card Situation: Why Your Suica Plan Needs a Backup

IC cards are rechargeable smart cards. They started as transit cards but now also pay for small purchases. The ten major cards work across most big cities, so a Suica bought in Tokyo can be used on Osaka’s subway, a Kyoto bus or a Fukuoka train. The ten are:

• Suica (JR East)
• Pasmo (Tokyo-area private railways and subways)
• Icoca (JR West)
• Kitaca (JR Hokkaido)
• Toica (JR Central)
• Manaca (Nagoya)
• PiTaPa (Kansai private railways and subways)
• Sugoca (JR Kyushu)
• Nimoca (Fukuoka private railways and buses)
• Hayakaken (Fukuoka subway)

Here is the big change since 2024. Because of a global semiconductor shortage, sales of physical anonymous (unregistered) Suica and Pasmo cards to tourists have been largely suspended since 2023. This is expected to continue well into 2026. If an older blog tells you to grab a Suica from the machine at the airport, treat that advice as out of date.

You have two workable options: a tourist-focused physical card or a mobile card on your phone.

Setting Up Mobile Suica, Mobile Pasmo, or a Welcome Card

Option 1: Mobile Suica or Mobile Pasmo (recommended if your phone is compatible)

Mobile Suica works in Apple Wallet on iPhone 8 or later (Japan models or international FeliCa-compatible models) and in Google Pay on compatible Android devices. Mobile Pasmo has similar compatibility. You skip the card entirely and top up straight from a credit card linked to Apple Pay or Google Pay. Visa and Mastercard generally work. American Express can be hit or miss, so test your card before you fly.

iOS setup:

1. Make sure your iPhone region is set to Japan if needed, or check the specific instructions for international phones.
2. Open the Wallet app.
3. Tap the “+” icon to add a card.
4. Select “Transit Card” and choose Suica or PASMO.
5. Follow the prompts to add funds from your linked credit or debit card. The minimum first load is JPY 1,000.

Official pages: www.jreast.co.jp/suica/eng/ (Suica, English), www.pasmo.co.jp/en/ (PASMO, English), www.jreast.co.jp/mobilesuica/ (Mobile Suica, Japanese, with English info via Apple and Google) and www.pasmo.co.jp/mp/eng/ (Mobile PASMO, English).

Option 2: Welcome Suica or Pasmo Passport

These are the tourist-oriented physical cards. Know the limits before you buy:

• Cost: Loads start at JPY 1,000, then JPY 2,000, JPY 3,000 and so on. There is no separate JPY 500 deposit, because that amount is part of the initial purchase value.



• Validity: 28 days from the date of purchase.
• Refunds: Any remaining balance and the card fee are not refundable. Spend the balance before you leave.
• Where to buy Welcome Suica: JR East Travel Service Centers, including Narita Airport, Haneda Airport, Tokyo Station and Shinjuku Station.
• Where to buy Pasmo Passport: Tokyo Metro Pass Offices, Toei Subway Pass Offices, Keisei Electric Railway and Keikyu Corporation, including at Narita and Haneda airports.

Topping Up and Tapping: How IC Cards Work Day to Day

Using the card is simple. Tap it on the reader at ticket gates (JR, subway, private railways), on buses, or at payment terminals in shops. That quick “pi” sound at the gate becomes second nature within a day.

Recharging a physical card at a station machine

1. Go to a ticket vending machine at any JR or private railway station. Look for “IC” or チャージ (charge) signs. Most machines have an English option.
2. Insert your IC card.
3. Select “Charge” (チャージ).
4. Choose the amount, such as JPY 1,000, JPY 2,000, JPY 5,000 or JPY 10,000.
5. Insert cash. Credit cards are generally not accepted for topping up at machines.
6. Take your card and change.

Recharging at a convenience store (konbini)

1. Go to the cashier at a 7-Eleven, Lawson or FamilyMart.
2. Say “IC kaado chaaji” (ICカードチャージ) and the amount you want to add.
3. Place your card on the reader.
4. Pay with cash.

Where your IC card works

• Transit: JR trains, subways, private railways and most local buses, including many airport limousines.
• Convenience stores: 7-Eleven, Lawson, FamilyMart, Mini Stop and others.
• Vending machines: Many modern ones.
• Taxis: Some, so look for the IC card logo.
• Coin lockers: Newer models.
• Limited retailers: Supermarkets, drugstores, some restaurants and department store food courts.

Credit Cards: What Works, What Doesn’t, and the DCC Trap

Credit card acceptance has grown a lot since 2020, but it is still not as universal as in many Western countries. Visa, Mastercard and JCB are the most widely accepted. American Express and Diners Club work in many larger places. Discover is generally not accepted.

Where cards work:

• Hotels, department stores, larger chain restaurants and branded shops in major cities.
• Electronics retailers such as Bic Camera and Yodobashi Camera, plus some supermarkets.
• Online bookings for hotels, flights and Shinkansen tickets through portals like Smart EX.
• Contactless “tap and pay”, increasingly common in konbini, supermarkets and major retailers. Look for the contactless symbol of four curved lines.

Where cards may fail: rural areas, many independent eateries, traditional inns, local souvenir shops, temples, shrines, smaller museums and older taxis or taxis in smaller cities. Since 2024, acceptance has kept expanding, and many smaller shops now have tablet-based terminals that take cards.

Three habits protect your money:

• Check foreign transaction fees with your card issuer before you leave.
• Always decline Dynamic Currency Conversion (DCC). If the terminal offers to charge you in your home currency, choose JPY. DCC usually gives an unfavourable exchange rate.
• Know your PIN. Many terminals ask for it instead of a signature.

Getting Cash: ATMs That Accept Foreign Cards

Finding an ATM is easy if you know where to look. The best options are in convenience stores:

• 7-Eleven (Seven Bank): The most reliable and widespread, open 24/7. The fee is JPY 110 per transaction on weekdays from 7:00 to 19:00 and JPY 220 in the evenings, on weekends and on holidays. Your own bank may add foreign transaction fees. English info: www.sevenbank.co.jp/intlcard/index2.html
• Lawson and FamilyMart (E-net ATMs): Also widely available. Fees are typically similar, JPY 110 or JPY 220, but read the fee on the screen before you confirm.
• Japan Post Bank (JP Bank ATMs): Found in post offices and some supermarkets. The fee is JPY 110 per transaction for international cards. Check the screen for any time-based charges.

Most major Japanese bank ATMs, such as Mizuho, SMBC and MUFG, may not accept foreign cards or may have limited English support. Skip them.

Step by step at a 7-Eleven ATM:

1. Insert your credit or debit card.
2. Select “International Cards” or “English” on the touch screen.
3. Choose “Withdrawal” (引き出し).
4. Enter your 4-digit PIN.
5. Select the amount, such as JPY 10,000, JPY 20,000 or JPY 50,000. The per-transaction maximum is often JPY 50,000 or JPY 100,000, depending on the ATM and your bank’s limits.
6. Confirm the transaction and the fee.
7. Take your cash, card and receipt.

Watch your own bank’s daily withdrawal limit too, not just the ATM’s. One large withdrawal costs a single fee, while several small ones cost a fee each time.

Tipping: Why You Should Skip It

Tipping is not customary in Japan and can be rude or confusing. Leave nothing at restaurants, hotels or taxis. If you leave coins on the table, staff may chase you down the street to return them. Some high-end restaurants and hotels add a service charge (サービス料, saabisu-ryō) of 10-15%. It is clearly shown on the bill and is part of their pricing, not a tip. The right way to say thank you is a warm “Arigato gozaimasu.”

Tax-Free Shopping: Passport, Minimums, Sealed Bags

Non-resident visitors on a temporary visitor visa can shop tax-free on eligible purchases. You must present your physical passport. Copies and photos are not accepted.

Minimums for 2026 (before tax, at one store on the same day):

• General goods (electronics, clothing, bags, shoes): JPY 5,000 or more.
• Consumables (food, drinks, cosmetics, medicines, alcohol, tobacco): JPY 5,000 to JPY 500,000.
• Combined: You can combine general goods and consumables to reach JPY 5,000, but then everything is packed as consumables, sealed and not to be opened in Japan.

The process:

1. Look for “Tax-Free” (免税, menzei) signs.
2. At checkout, say “Menzei onegaishimasu” (免税お願いします).
3. Show your physical passport.
4. The store either deducts the tax at the till or refunds it at a designated counter.
5. The record goes to Japan Customs electronically. Stores often still give you a receipt.
6. Consumables arrive in a transparent sealed bag. Keep it unopened until you leave Japan.

Typical tax-free stores include department stores, Bic Camera, Yodobashi Camera, Yamada Denki, large drugstores like Matsumoto Kiyoshi and Don Quijote, and many souvenir shops. At the airport, officials may ask to see your passport and purchases. The digital system is now fully in place, so paper slips are no longer stapled into passports. Info: taxfree.jp/en/

QR Apps and Travel Cards: What Is Worth Your Time

QR code apps like PayPay, Line Pay and Rakuten Pay are hugely popular with residents. They generally need a Japanese bank account and phone number, so most short-term visitors should skip them.

A better extra tool is a prepaid multi-currency card such as Revolut or Wise. You load your home currency, convert to JPY at competitive rates, and use it like a debit card anywhere Visa or Mastercard is accepted. It can help you avoid foreign transaction fees from your home bank.

2026 Budget Reality: Cash vs Card by Spending Tier

These are rough daily spending guides, excluding your hotel, to help you decide how much cash to carry. Your own habits will change them.

• Budget (about JPY 8,000 to JPY 12,000 a day): Konbini meals, ramen counters, cheap izakayas and local transit. Most of this is cash or IC card, so keep the JPY 10,000 to JPY 20,000 cash buffer topped up.
• Mid-range (about JPY 15,000 to JPY 25,000 a day): A mix of chain restaurants, cafes, museum entries and shopping. Use a card for bigger bills and cash for shrines, small shops and snacks.
• Comfortable (JPY 30,000 and up a day): Hotel dining, department stores and taxis. Cards cover most of it, but a service charge of 10-15% may appear on high-end bills, and you still need cash for the small, traditional places that make a trip memorable.

Common Mistakes to Avoid

• Counting on a physical Suica at the airport. Anonymous cards have been largely unavailable to tourists since 2023. Plan for Mobile Suica, Mobile Pasmo or a Welcome card.
• Arriving with no cash. A temple gate, a vending machine and a ramen counter can all say no to your card in one afternoon.
• Accepting payment in your home currency. Decline DCC and pay in JPY.
• Trying to top up an IC card with a credit card at a station machine. Machines generally take cash only. Mobile cards top up from your linked card.
• Buying a Welcome card with too much balance. The balance and the card fee are not refundable, and the card expires after 28 days.
• Using random bank ATMs. Stick to Seven Bank, Japan Post Bank, Lawson or FamilyMart.
• Forgetting your passport for tax-free shopping. A photo will not work.
• Opening sealed consumables in Japan. They must stay sealed until you leave the country.
• Leaving a tip. Say thank you instead.

Frequently Asked Questions

Can I use a credit card everywhere in Japan in 2026?

No. Visa, Mastercard and JCB work in hotels, department stores, chain restaurants and electronics stores, especially in major cities. Small ramen shops, izakayas, ryokan, temples and rural businesses often take cash only. Carry JPY 10,000 to JPY 20,000 as a backup every day.

Should I tip in Japan?

No. Tipping is not customary and can confuse or offend staff. Some high-end restaurants and hotels add a service charge of 10-15%, which is part of the price, not a tip. A sincere “Arigato gozaimasu” is the right way to thank someone for good service.

Can tourists buy a Suica card in 2026?

Physical anonymous Suica and Pasmo cards have been largely suspended for tourists since 2023, and this is expected to continue well into 2026. Tourists can use Welcome Suica or Pasmo Passport, valid for 28 days, or Mobile Suica or Mobile Pasmo on a compatible phone.

Which ATMs work best with foreign cards?

7-Eleven’s Seven Bank ATMs are the most reliable and widespread, available 24/7 with English menus. Fees are JPY 110 on weekdays from 7:00 to 19:00 and JPY 220 in evenings, weekends and holidays. Japan Post Bank, Lawson and FamilyMart ATMs also work. Many major bank ATMs may not accept foreign cards.

How does tax-free shopping work for tourists?

Show your physical passport at a tax-free store. General goods need JPY 5,000 or more before tax at one store on one day. Consumables run from JPY 5,000 to JPY 500,000 and stay sealed until you leave Japan. Records go to customs electronically, so no sticker goes in your passport.

📷 Featured image by PJH on Unsplash.