Tokyo

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Credit Cards and Payments

Guidance on using credit cards and mobile payment systems across Tokyo.

Sections

1. Types of Credit Cards Accepted in Tokyo

Tokyo is relatively credit card-friendly compared to rural areas in Japan. However, not all establishments accept credit cards, so itโ€™s important to know where and how you can use them.

Major Credit Card Networks

  • Visa and Mastercard: Widely accepted in Tokyo, including at most hotels, department stores, chain restaurants, and tourist attractions.
  • American Express (AmEx): Accepted at many mid-to-high-end establishments, but less so at smaller businesses.
  • JCB (Japan Credit Bureau): A Japanese credit card network that is widely accepted across the country. International visitors with JCB cards will find them very convenient.
  • Diners Club: Accepted at some high-end restaurants and hotels, but not as common as Visa or Mastercard.
  • UnionPay: Increasingly accepted in Tokyo, especially in areas frequented by Chinese tourists.

Prepaid Travel Cards

  • Some travelers prefer prepaid travel cards like Revolut, Wise, or Travelex, which can be loaded with Japanese yen and used like a credit card. These are accepted wherever Visa or Mastercard is supported.

2. Prevalence of Cash vs. Card Usage

Despite the growing acceptance of credit cards, cash remains king in Japan, even in Tokyo. Hereโ€™s a breakdown of where you can expect to use cash versus cards:

Cash-Preferred Situations

  • Small Restaurants and Izakayas: Many small, family-run eateries and traditional izakayas (Japanese pubs) only accept cash.
  • Street Vendors and Markets: Food stalls, flea markets, and some souvenir shops may not accept cards.
  • Temples and Shrines: Donations, entrance fees, and purchases at temple shops are often cash-only.
  • Taxis: While many taxis in Tokyo now accept credit cards, some still prefer cash, especially for short rides.

Card-Friendly Situations

  • Hotels: Most hotels, especially international chains, accept credit cards.
  • Department Stores and Shopping Malls: Major retailers like Isetan, Takashimaya, and Uniqlo accept cards.
  • Convenience Stores: Chains like 7-Eleven, Lawson, and FamilyMart accept credit cards and even contactless payments.
  • Public Transport: While credit cards are not directly used for train or bus fares, you can use prepaid IC cards (like Suica or Pasmo) that can be recharged with a credit card.

3. Common Payment Procedures

When using credit cards in Tokyo, the process is straightforward but may differ slightly from what youโ€™re used to in your home country.

At Restaurants and Shops

  • Present your card to the cashier or place it in the provided tray (a common practice in Japan to avoid direct hand-to-hand contact).
  • The cashier will process the payment and return your card, often with a receipt.
  • Some establishments may ask if you want to pay in one-time (ikkatsu) or installments (bunkatsu). As a visitor, you should choose one-time payment unless you have a Japanese-issued card that supports installments.

Contactless Payments

  • Many establishments now accept contactless payments via credit cards with NFC (Near Field Communication) technology. Look for the contactless payment symbol.
  • Apple Pay, Google Pay, and other mobile wallets linked to Visa, Mastercard, or AmEx are also increasingly accepted.

Online Payments

  • When booking hotels, tickets, or tours online, credit cards are the most common payment method. Ensure your card is enabled for international transactions.

4. Associated Costs and Fees

Using credit cards in Tokyo may involve some additional costs, depending on your card issuer and the type of transaction.

Foreign Transaction Fees

  • Many international credit cards charge a foreign transaction fee (typically 1-3%) for purchases made in Japan. Check with your card issuer before traveling.
  • Some cards, like the Chase Sapphire Preferred or Capital One Venture, waive foreign transaction fees.

Dynamic Currency Conversion (DCC)

  • Some merchants may offer to charge your card in your home currency instead of Japanese yen. This is called Dynamic Currency Conversion (DCC), and it often comes with unfavorable exchange rates. Always choose to pay in Japanese yen to avoid extra costs.

ATM Withdrawal Fees

  • If you use your credit card to withdraw cash from an ATM, you may incur both a cash advance fee and interest charges. Itโ€™s better to use a debit card or a prepaid travel card for ATM withdrawals.

5. Notable Local Payment Services and Options

In addition to credit cards, Tokyo offers a variety of local payment methods that are worth considering:

IC Cards (Suica and Pasmo)

  • These prepaid smart cards are primarily used for public transportation but are also accepted at convenience stores, vending machines, and some restaurants.
  • You can recharge IC cards using cash or a credit card at ticket machines in train stations.

Mobile Payment Apps

  • PayPay: A popular QR code-based payment app in Japan, though it requires a Japanese bank account to set up.
  • Line Pay and Rakuten Pay: Other local mobile payment options, but they are primarily for residents.

E-Money Cards

  • Cards like nanaco (used at 7-Eleven) and WAON (used at Aeon stores) are widely accepted for small purchases. These are more common among locals but can be convenient for visitors as well.

6. Cultural and Practical Considerations

Understanding the cultural nuances of payment in Tokyo can make your experience smoother and more enjoyable.

Cultural Etiquette

  • Always place your card or cash in the small tray provided at the counter, rather than handing it directly to the cashier.
  • Keep your receipts, as they may be required for returns or tax-free shopping.

Tax-Free Shopping

  • Many stores in Tokyo offer tax-free shopping for tourists. To qualify, you must spend over 5,000 yen in a single transaction and present your passport. The tax-free amount is often refunded directly to your credit card.

Backup Cash

  • Always carry some cash as a backup, especially for emergencies or when visiting smaller establishments. ATMs at 7-Eleven and Japan Post accept international cards and are reliable for cash withdrawals.

Language Barriers

  • While many cashiers in Tokyo understand basic English, itโ€™s helpful to know a few Japanese phrases:
    • "Kurejitto kaado wa tsukaemasu ka?" (Can I use a credit card?)
    • "Ikkatsu barai de onegaishimasu" (One-time payment, please).

7. Tips for Visitors

  • Notify your bank of your travel plans to avoid your card being flagged for suspicious activity.
  • Use a credit card with no foreign transaction fees to save on costs.
  • Consider getting a Suica or Pasmo card for convenience, as they are widely accepted and reduce the need for cash.

By understanding these aspects of credit cards and payments in Tokyo, youโ€™ll be well-prepared to navigate the cityโ€™s financial landscape with ease. Whether youโ€™re dining at a Michelin-starred restaurant or grabbing a quick snack from a convenience store, knowing when and how to use your credit card will enhance your experience in this vibrant metropolis.