Exchanging Money in Japan

Exchange at the Airport

Plan to exchange your money at the airport when you arrive. The rates are the same as at the banks, and you want to have Japanese yen once you leave the airport. It is possible to exchange money at major hotels, but the rates are usually not as good.

Depending on where you are traveling from, it might be beneficial to exchange money before arriving. For instance, you will get a better exchange rate for yen in Southeast Asian countries than in Japan. But if you are traveling from the United States, definitely wait to exchange your money. You will get a much better rate in Japan for your dollars than in the US.

Exchange All Your Cash

Exchange any and all cash that you are planning to use while in Japan at the airport. This is the most convenient option because it is difficult to exchange cash once you leave the airport.

Large banks and post offices have money exchange counters, but the process can take a long time and you are subject to banking hours.

Be sure to exchange enough cash to cover incidentals (i.e., meals, vending machines, taxis, entrance fees). Many small shops and restaurants, especially in rural areas, may not accept credit cards.

Theft is not so much an issue. In Japan, it is not uncommon for people to carry 100,000 yen (equivalent to $1,000) in their wallets. And, it is perfectly acceptable to pay for a low-cost item with a 10,000 yen bill (equivalent to $100).

ATM Cards Get a Better Rate than Cash

Exchanging cash is convenient and does not incur any fees, but you get a lower rate of exchange than withdrawing money from an ATM.

International ATM cards only work on select machines in Japan. You can use international ATM cards at Seven Bank ATMs (at 7-Eleven convenience stores) and Japan Post ATMs.

• Japan Post ATMs: 30,000 machines all across Japan at Japan Post offices. 50,000 yen limit per transaction/day.
• Seven Bank ATMs: 25,000 machines all across Japan at 7-Eleven convenience stores. Open 24 hours. 100,000 yen limit per transaction/day.

The ATMs in Japan have fees depending on the time and day of the week, so take note before withdrawing money. The fees can range from 0 yen to 220 yen.

Also, check with your bank regarding foreign transaction fees, maximum withdrawal limits, and other ATM fees.

For example, my bank has a maximum withdrawal limit of $600 per day and charges a 1% transaction fee and a $1 ATM fee.

Use Credit Cards for Larger Purchases

Credit cards get the best exchange rates and are accepted at most major hotels, department stores, restaurants, and convenience stores.

It’s always good to have cash on hand, but use a credit card when you are making a large purchase because you will get a much better rate of exchange.

Before your trip, inquire to make sure your credit card does not have foreign transaction fees. These are often around 3% of the amount charged, which can add up!