You’ve probably heard many things about Japan being a cash-based society, although they’ve probably transitioned quite a bit on that front since Covid hit. Nevertheless, it’s still generally true relative to living back in America. I did use cash sometimes, but it really was mostly when collecting or making payments for bulk college club purchases, or paying friends back when we went out to eat (and when Zelle didn’t work out, since I don’t use Venmo). Anyway, before I came to Japan, I brought about 380,000 yen to use before I got my first paycheck to pay for set up things, since that’s what I read a lot of people recommended. Looking back, I probably didn’t need that much, since I also ended up using my conversion fee-less credit card sometimes, but it really didn’t hurt to bring more money than less. Since settling in, there are quite a few ways that I pay for things here (as with everywhere), and I figured I’d write a post about it.
One of the first things that I received help with setting up here was my Japanese bank account (I got mine with Japan Post/Yucho Ginko, which seems to be pretty common). The main reason is because my paycheck would be automatically deposited in it every month, and also various other bills would be automatically withdrawn from it so I wouldn’t have to manually do those. Having a bank account is a major way to pay bills, because account transfer is a pretty common thing to pay by here. Though many times if you’re the one initiating the transfer, there will be a small transfer fee involved. There’s a few ways to do it, from doing it at the window with help, at an ATM, or actually with the app (from most expensive to least).
When setting up a bank account, you automatically get a cash card and a bank book. The bank book can help you keep track of all the transactions, and you have to go to your bank ATM to update it (though I rarely go, since the app does that digitaly and I can check that anytime). You can also use the bank book to deposit/withdraw cash. Similarly, the cash card has a similar function, except you don’t have to carry around the book with you and just the card in your wallet. The cash card works at any ATM, not just your bank, including konbinis and I think other bank ATMs. Though, depending on the ATM and time of day, there may or may not be a small fee for withdrawing, so that’s pretty important to take into consideration. Now, the cash card is NOT a debit card (that is possible, but has to be applied for separately), and as the name implies, is really only used to get cash. If you lose it, or mistakenly forget your PIN code 3 times and lock it, you have to use your bank book and a form of ID at a local bank branch to get a new one/unlock it. Personally, I usually withdraw a lot at a time so I don’t have to make another ATM stop for a while.
Speaking of cash, I do try to carry a bit on me, just in case, because cash does work everywhere, and a lot of people like to carry cash. It’s pretty common to see someone use a 10,000 bill to pay for a small amount. I use cash to pay for my kyushoku at school, to charge my supermarket card, for my bus tickets (when it’s more worth than using the IC card) and at many local restaurants or small businesses that don’t take card or digital money.
I also prefer to use cash to refill my IC card (transportation card, SUICA in the Tokyo area), and normally you can only use cash for that, but since I transferred my card to my Apple Wallet, I can theoretically load it using it Apple Pay. Many places also accept IC cards as a form of digital payment, so you can load a bunch of money onto it and use it kind of like a debit card to pay at shops or restaurants. They obviously need to be able to accept it though, but if they do, there will be a sign.
Another form of payment that some places will take if they have a sign up, is things like Paypay, Line Pay, Rakuten Pay, etc, that’s essentially like Japanese Venmo/Zelle. I haven’t used these things much (I started using Rakuten Pay a bit recently to get more points), but I believe they’re essentially linked to your bank account/credit card and you scan a code on your phone/use an app at the register to deduct from a pre-loaded amount from your bank account to your app account. Alternatively, if you use a service that acquires points, some places will also take those points as a form of payment, like d Points (docomo I think?), and Rakuten Points. Some places also have an partnership or something where if you’re a member and have a point account you can gain points by scanning your point card along with you purchase to earn money back later.
You might be wondering, it’d be pretty handy to have a Japanese debit of credit card. I’ve mentioned Rakuten a bit, and I was actually recommended to apply for a Rakuten credit card soon after I came. I was one of the lucky ones (for some reason, Rakuten rejects and accepts people for mysterious reasons) to be able to get one, and it’s been really handy, for making online purchases on Amazon or other sites for the like. You can also get points for making purchases to redeeem later, so that’s pretty cool, and I’ve already used a bit to save some money! I linked my credit card to pay for my phone and internet bills, and the card is linked to my bank account and automatically deducted the month after.
An alternate way of paying for online purchases is by using cash and going to a konbini. A lot of sites (but not all!) will offer an option to pay this way, and for those that don’t have a card they can still pay their bills. Usually, you make a reservation online, go to a konbini and print out a slip of paper, and use cash at the register to pay for it. A little bit inconvenient, but still a way to make online purchases here.
Now, I’m an American living in Japan, earning yen and potentially going back to America at some point. I could just spend all my yen here, but it’d be great to at least convert some of it eventually when I go home. Now, you can transfer directly from your Japanese bank account to American, but depending on the bank, the fee may or may not be high (I heard Japan Post is not great, which happens to be my bank). A great service I’ve heard of and been recommended is the Wise app, which supposedly has low transfer rates and is the most worth it. I haven’t needed to transfer anything yet, as I’m very fortunate to have savings at home and not much loans or anything back home to pay off. I’m hoping transferring money will be a smooth process though!
Also, when paying there will usually be a little tray for you to put your cash on. Instead of directly handing your money to the cashier, if there is this tray, put your money or card on it! Some cashiers will directly hold out their hand to accept payment though.
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