Exchanging cash in Japan involves understanding the best methods for getting Japanese yen. This guide covers the pros and cons of various options, including airport exchanges, home banks, and ATMs. It also discusses using credit and debit cards, highlighting fees and charges you might encounter. By the end, you'll know how to maximize your travel budget and avoid unnecessary costs.
Related articles that will help to save even more money on your trip to Japan:
And don't forget to watch the full video with all of the tips here:
Japan doesn't accept foreign currency widely, so you'll need to exchange your home currency for Yen. To make the most of your dollar and get as much as you can out of each dollar you exchange, it's important to know the current exchange rate from your currency to Japanese Yen.
For example, if you look up the current exchange rate on Google and see that 1 US dollar equals ¥153.74, that's the mid-market rate; the fairest exchange rate you'll get at the current moment. But not so fast! Because depending on how and where you decide to exchange your money, the actual amount you'll get can vary, and fees can reduce the value.
Quick Tip: Always check the current exchange rate online before you travel to have a benchmark. A simple Google search for "Yen to [your currency]" will give you the current market rate of exchange.
Since you'll need to exchange your home currency into Yen in order to purchase items in Japan, the most important decision you will need to make is how you will exchange your money. Each method of exchanging your currency to Yen will incur a different fee, so it's up to you to do your research and decide which method you'll use. But I'll walk you through your best options to make it easy on you. Here are the different methods we'll discuss, and the fees involved with each method:
When it comes to exchanging your currency in Japan, airport and hotel currency exchange counters might seem convenient, but they come with a hidden cost: high fees. These exchange counters often offer less favorable rates and tack on additional fees that can quickly eat into your travel budget.
Poor Exchange Rates: One of the primary disadvantages of using airport and hotel currency exchange counters is the unfavorable exchange rates they offer. For instance, while the mid-market rate may indicate that 1 US dollar equals ¥151.39, these counters might only give you ¥149 per dollar. This seemingly minor difference can result in substantial losses, especially when exchanging larger amounts of money.
If you're planning a trip to Japan, consider exchanging your currency at your home bank before you go. Here's why it's a smart move:
If you just have to use the exchange counters in the airport in Japan, it's best to withdraw only a small amount to cover immediate expenses until you can get to an ATM in the city. Instead of relying on these high-fee exchange counters, use your ATM card at a 7-Eleven or Japan Post Bank ATM once you arrive in Japan. These ATMs typically offer the best exchange rates and the lowest fees, allowing you to get more yen for your dollars.
Most 7-Eleven ATMs charge no additional fees for foreign cards on networks like Maestro or MasterCard. Even if you use a Visa card, the fees are usually minimal compared to what you'd pay at an airport or hotel exchange counter. 7-Eleven ATMs and Post Office ATMs can be found in the airport terminal upon arrival.
I recommend withdrawing just enough to get you started—around ¥30,000 (about $200). This amount should cover your initial expenses, such as transportation from the airport to your accommodation, your first meals, and a little extra for any immediate needs. By planning ahead and limiting your airport withdrawals, you can maximize your travel budget and have more to spend on enjoying your trip to Japan.
One of the sneakiest fees that very few travelers really consider is foreign transaction fees. Foreign transaction fees are charges that banks and credit card companies apply when you make purchases outside the US or in a foreign currency. That means, each time you use your credit card or debit card for a purchase while in Japan, there will be a fee that you won't even see until you take a look at your bank statement.
One of the sneakiest fees that very few travelers really consider is foreign transaction fees. Foreign transaction fees are charges that banks and credit card companies apply when you make purchases outside the US or in a foreign currency. That means, each time you use your credit card or debit card for a purchase while in Japan, there will be a fee that you won't even see until you take a look at your bank statement.
These fees can also kick in when you shop online from international websites. Usually, foreign transaction fees range from 1-5% of the transaction amount, with the average being around 3%. They can include shipping costs and taxes, so if you make a lot of purchases, these fees can really add up. Using an international ATM in Japan may come with minor service fees, although not all ATMs charge them. For instance, Post Bank applies a fee of 220 JPY (approximately 3.50 USD*) for transactions made with a foreign-issued card.
In addition to these fees, your bank might impose extra charges based on the type of card you use. Credit card withdrawals, in particular, can incur substantial costs, including cash advance fees, interest, and foreign transaction charges. To understand the exact fees associated with your card, it's best to check with your card issuer or bank before your trip.
Knowing about foreign transaction fees before your trip to Japan is crucial for keeping your travel expenses in check. Take a look at the chart below to understand the fees that some banks charge:
| Institution | Foreign debt card purchase cost* | Foreign ATM withdrawal cost** |
|---|---|---|
| Bank of America | 3% | $5 + 3% of amount |
| Chase | 3% | $5 + 3% of dollar amount |
| Citi | 3% | $2.50 non-Citibank ATM fee + 3% of amount |
| Citizens Bank | 3% | $3 + 3% of amount |
| Fifth Third Bank | 3.2% (3% for transaction and 0.2% for currency conversion) | $5 + 3.2% of amount |
| Navy Federal Credit Union | 1% | $1 + 1% of amount |
| TD Bank | 3% | $3 + 3% of amount |
| Wells Fargo | 3% | $5 |
Alright, so In Japan, cash is still king. While it's smart to plan ahead and book activities and transportation in advance, having some yen on hand is crucial for everyday expenses. My guide on using ATMs in Japan aims to give you the lowdown on navigating the banking system here, so you can access your cash with minimal fees. But be sure you watch the full YouTube video for an in-depth explanation of how to save on fees in Japan.
By following these tips, I'm hoping to help you make the most of your time in Japan while keeping your expenses in check. Having some yen in your pocket gives you that extra flexibility and peace of mind during your travels. Safe travels, and soak in every moment of your Japanese adventure!
Kelly Browning is a design enthusiast and avid traveler who’s fallen head over heels for Japan. With an advanced degree in architecture and over 12 years in the fashion industry, Kelly’s career took her around the world, but it was Japan that truly captured her heart. Now, through a blog, newsletter, and YouTube channel, Kelly aims to inspire others to explore the beauty of Japan.
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