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Your Complete Guide to Handling Money in Japan: Tips, Currency Exchange, and Payment Methods

Japan, a captivating destination known for its rich culture, exquisite cuisine, and fascinating traditions, awaits your exploration. As you embark on your journey through this incredible country, it’s essential to familiarize yourself with Japanese currency to ensure a smooth and hassle-free experience. In this comprehensive guide, we will walk you through everything you need to know about handling money in Japan.

Table of Contents

  1. Introduction to Japanese Currency
  2. Denominations of Yen Banknotes and Coins
  3. Currency Exchange: Best Places to Exchange Your Money
  4. Payment Methods in Japan: Cash or Card?
  5. Budgeting Tips for Your Trip to Japan
  6. Etiquette and Cultural Considerations When Making Payments and Tipping
  7. Safety and Security Tips for Handling Money in Japan
  8. Useful Japanese Phrases for Currency and Money Exchange
  9. How to Get Your Yen: Currency Exchange and ATM Withdrawal
  10. Money-Related Tourist Attractions in Japan

1. Introduction to Japanese Currency

When visiting Japan, it’s important to understand the basics of the Japanese currency, the yen (¥). The yen is the official currency of Japan and is denoted by the symbol ¥. The name “yen” directly translates to “a round object,” reflecting the circular shape of coins. The yen is available in various denominations, including banknotes and coins.

Denominations of Yen Banknotes and Coins

The Japanese yen comes in different denominations to accommodate various transaction amounts. Banknotes are commonly used for larger payments, while coins are used for smaller purchases. Here are the denominations of yen banknotes and coins:


  • ¥1,000
  • ¥2,000 (rare)
  • ¥5,000
  • ¥10,000


  • ¥1
  • ¥5
  • ¥10
  • ¥50
  • ¥100
  • ¥500

It’s worth noting that the ¥2,000 banknote is relatively rare, so you may not come across it frequently during your travels in Japan. Coins, on the other hand, are commonly used for everyday transactions and can be found in circulation.

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2. Currency Exchange: Best Places to Exchange Your Money

Before your trip to Japan, you may consider exchanging your currency for Japanese yen. It’s important to choose the right place for currency exchange to ensure you receive fair rates and avoid unnecessary fees. Here are some of the best places to exchange your money in Japan:

  • Banks: Banks in Japan typically offer currency exchange services. Look for banks displaying an “AUTHORIZED FOREIGN EXCHANGE” sign. While banks are reliable and convenient, be aware that they may have limited hours for exchanging foreign currency, usually beginning around 10:30 or 11:00 AM.
  • Post Offices: Japan’s post offices also provide currency exchange services, and you can find ATMs that accept foreign bank cards. Major post offices, usually located near main train stations, have longer open hours for ATMs, making it a convenient option for currency exchange.
  • Licensed Money Changers: Licensed money changers can be found at international airports and some other locations. They may offer competitive rates and convenient services for exchanging your currency.
  • Travelex Foreign Exchange Kiosks: Travelex operates foreign exchange kiosks in several cities in Japan, including Tokyo, Kyoto, Nagoya, Osaka, and Sapporo. These kiosks provide a quick and convenient way to exchange your money.

When exchanging your currency, it’s important to compare exchange rates and fees to ensure you are getting the best deal. Additionally, consider exchanging enough money to last several days, as it may not be necessary to exchange large amounts at once.

3. Payment Methods in Japan: Cash or Card?

Japan has traditionally been considered a cash-based society, but there has been a significant increase in the acceptance of other payment methods in recent years. While cash is widely accepted, especially for smaller transactions, credit and debit cards are now commonly used in many establishments, especially in larger cities. Here’s a breakdown of the payment methods you can use in Japan:


Cash is still a popular payment method, particularly for smaller amounts and in rural areas. Japanese yen bills come in denominations of ¥1,000, ¥2,000 (rare), ¥5,000, and ¥10,000. Coins are available in denominations of ¥1, ¥5, ¥10, ¥50, ¥100, and ¥500. It’s advisable to carry cash with you, especially when visiting smaller shops, restaurants, temples, and shrines, as they may not accept cards.

Credit and Debit Cards

Credit and debit cards are widely accepted in Japan, particularly in larger cities and tourist areas. Most hotels, department stores, supermarkets, and chain restaurants accept card payments. Major credit card brands such as Mastercard, Visa, and JCB are commonly accepted, while American Express and Diners Club may be accepted in some establishments.

IC Cards

IC cards, such as Suica and Pasmo, are stored-value cards primarily used for convenient payment of train and bus fares. However, they can also be used at convenience stores, many restaurants, vending machines, and coin lockers. IC cards are a convenient alternative to cash, especially for frequent travelers.

Mobile Payment Options

Japan has seen an increase in mobile payment options in recent years. Mobile phone apps such as Edy, Rakuten Pay, PayPay, and Line Pay allow for payments at selected stores by tapping an NFC reader or scanning a QR code. Alipay, WeChat Pay, and Apple Pay are also gaining acceptance, but compatibility may vary depending on the store and device.

When making payments in Japan, it’s important to note that foreign currencies are generally not accepted, except at major international airports. Additionally, it’s worth carrying smaller denominations of yen for convenience, as some places may have limited change for larger bills.

4. Budgeting Tips for Your Trip to Japan

Setting a budget for your trip to Japan is essential to ensure you make the most of your experience without overspending. Here are some budgeting tips to help you manage your expenses:


Accommodation costs can vary greatly depending on your preferences and location. Consider staying in budget-friendly options such as guesthouses, hostels, or capsule hotels to save on accommodation expenses. Alternatively, you can explore options like Airbnb for a more affordable and local experience.


Japan offers an extensive and efficient transportation system, including trains, buses, and subways. To save on transportation costs, consider purchasing a Japan Rail Pass if you plan to travel extensively within the country. The pass allows unlimited travel on JR trains for a specific duration and can be a cost-effective option for long-distance journeys.


Japan is renowned for its delicious cuisine, and dining out can be a significant part of your travel experience. To save on dining expenses, consider exploring local street food stalls, affordable restaurants, and convenience stores, which offer a variety of inexpensive and tasty options. Eating like a local can be a great way to experience authentic Japanese flavors without breaking the bank.

Sightseeing and Activities

Japan offers a wide range of cultural, historical, and natural attractions. Research and plan your itinerary in advance to prioritize the activities and attractions that interest you the most. Look for free or discounted admission days at museums and attractions, and consider exploring lesser-known destinations to save on entrance fees and avoid crowds.


Japan is known for its shopping opportunities, from high-end department stores to unique local markets. Set a shopping budget and prioritize the items you wish to purchase. Look for tax-free shopping options available to foreign tourists, as this can provide savings on certain goods.

By carefully planning and budgeting for your trip, you can make the most of your experience in Japan without overspending.

5. Etiquette and Cultural Considerations When Making Payments and Tipping

When it comes to making payments and tipping in Japan, it’s important to be aware of the cultural norms and etiquette. Here are some key considerations:


Tipping is not customary in Japan and can sometimes be seen as rude or confusing. In most situations, there is no need to tip, as good service is considered a standard expectation. Instead of tipping, express gratitude and appreciation by saying “arigatou gozaimasu” (thank you very much) or simply by being polite and respectful.

Exchanging Money and Handling Cash

When exchanging money or handling cash during transactions, it’s important to do so respectfully. Avoid counting or displaying large amounts of cash in public, as it may be seen as impolite or attract unnecessary attention. When receiving change, accept it with both hands as a sign of respect.

Payment Etiquette

When making payments, it’s common to present the exact amount or use cashless payment methods whenever possible. If you are paying with cash, try to provide smaller bills or coins, especially in smaller establishments or when purchasing low-cost items. In some cases, larger bills may not be accepted, or the establishment may have limited change available.


Receipts are commonly provided for transactions in Japan, even for small purchases. It’s good practice to accept and keep your receipts, especially for larger expenses or for potential tax refunds at the airport.

By understanding and respecting the cultural norms and etiquette surrounding payments and tipping, you can navigate transactions in Japan with ease and courtesy.

6. Safety and Security Tips for Handling Money in Japan

Japan is generally a safe country with a low crime rate. However, it’s still important to take precautions to protect your money and belongings. Here are some safety and security tips for handling money in Japan:

Carry Cash Securely

When carrying cash, keep it secure in a wallet, money belt, or concealed pouch. Avoid displaying large amounts of cash in public and be cautious in crowded areas, particularly during rush hour.

Use ATMs Safely

When using ATMs, be aware of your surroundings and choose well-lit and secure locations. Use ATMs located inside banks, post offices, or convenience stores, as they are generally safer than standalone machines. Shield your PIN when entering it and be cautious of anyone who may be observing your transaction.

Be Alert to Pickpockets

While Japan is generally safe, pickpocketing can occur in crowded areas, particularly in popular tourist destinations. Keep a close eye on your belongings, especially in crowded trains, buses, and busy streets. Use bags with secure closures and consider wearing it in front of you for added security.

Keep Important Documents Safe

Ensure you have copies of important documents, such as your passport, and keep them separate from the originals. Store originals in a safe place, such as a hotel safe, and carry copies with you when necessary.

Report Lost or Stolen Cards Immediately

If your credit or debit cards are lost or stolen, report it to your bank or card issuer immediately. Most providers have 24/7 helplines for such incidents. Additionally, keep a record of your card details and emergency contact numbers in a safe place.

By following these safety tips, you can minimize the risk of theft and enjoy a worry-free experience during your time in Japan.

7. Useful Japanese Phrases for Currency and Money Exchange

Learning a few basic Japanese phrases related to currency and money exchange can be helpful during your travels. Here are some useful phrases to know:

  • Sumimasen, kawarimasu ka? (Excuse me, do you have change?)
  • Kore o kawaritai desu (I would like to exchange this)
  • Ginko wa doko desu ka? (Where is the bank?)
  • Kurejitto kaado wa tsukaemasu ka? (Do you accept credit cards?)
  • Arigatou gozaimasu (Thank you very much)

While many Japanese people understand basic English, making an effort to use some Japanese phrases can enhance your interactions and show respect for the local culture.

8. How to Get Your Yen: Currency Exchange and ATM Withdrawal

To obtain Japanese yen, you can choose between currency exchange and ATM withdrawal. Here’s what you need to know about each option:

Currency Exchange

Currency exchange services are available at banks, post offices, licensed money changers, and Travelex foreign exchange kiosks. Compare exchange rates and fees to ensure you get the best deal. Plan ahead and exchange enough money to last several days, as it may not be necessary to exchange large amounts at once.

ATM Withdrawal

ATMs in Japan may have limited acceptance of foreign cards. Look for ATMs at 7-Eleven convenience stores, post offices, and major banks, as they are more likely to accept foreign cards. Check with your card issuer regarding any fees or restrictions for international ATM withdrawals.

It’s advisable to inform your bank about your travel plans and ensure your card is activated for international use. Also, be mindful of ATM operating hours, as some ATMs may not be available during the night or on weekends.

9. Money-Related Tourist Attractions in Japan

While exploring Japan, you may come across some unique money-related tourist attractions. Here are a few noteworthy places to visit:

  • The Bank of Japan Currency Museum: Learn about the history of Japanese currency and explore interactive exhibits at this museum located in Tokyo.

  • Osaka Mint Bureau: Visit during cherry blossom season to witness the production of commemorative coins and explore the beautiful cherry blossom gardens.

  • Money Museum, Tokyo: Discover the world of money and its impact on society at this museum in Tokyo, featuring exhibits on banknotes, coins, and the history of currencies.

  • Nagasaki Money Museum: Dive into the history of money in Japan and around the world at this museum located in Nagasaki.

These attractions offer unique insights into the history and significance of currency and are worth considering for a visit during your time in Japan.

In conclusion, understanding Japanese currency, payment methods, and cultural considerations is essential for a seamless and enjoyable experience in Japan. By following the tips and guidelines in this guide, you can navigate money-related matters with confidence and make the most of your journey through this captivating country. Enjoy your adventures in Japan, and may your experiences be enriched by the rich tapestry of its culture, traditions, and cuisine.

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