Cash, Card, ATMs & Tipping in Tokyo

You’ve booked Tokyo, heard it’s “year 2040 in tech and cash in 1990,” and now you’re wondering if you’ll get laughed at for handing over a credit card at a ramen counter or if you need to tuck a stack of yen into your sock. Here is exactly how the money works on the ground—where your card works, where it doesn’t, and the one financial habit you must unlearn before you land: tipping is not just optional, it’s actively rejected.

Currency Basics

Japan uses the yen (JPY, ¥). As of mid-2025, ¥150 ≈ $1 USD, though the rate fluctuates. You’ll be handling coins in denominations of ¥1, ¥5, ¥10, ¥50, ¥100, and ¥500. The ¥5 coin has a hole and is considered lucky. Get used to pocketing change—digital wallets work, but coins are inevitable.

Cash vs. Card: The Real Picture

Tokyo is still surprisingly cash-heavy. Department stores, major hotel chains, modern restaurants, and big chains like Uniqlo or Muji take cards without blinking. But small restaurants (especially laneway ramen shops, yakitori stalls, and family-run okonomiyaki places), temples and shrines, traditional souvenir shops, and some taxis are cash-only. A taxi driver in central Tokyo may accept Suica but not a Visa. Always carry at least ¥10,000 in your pocket, especially outside Shinjuku/Shibuya.

Apple Pay and Google Pay are growing, but they rely on either a linked Japanese IC card (Suica/Pasmo) or a contactless credit card. If your foreign card doesn’t support Felica, you’ll need the physical chip. Suica/Pasmo IC cards are essential: you buy one at a ticket machine for a ¥500 deposit (refundable minus fee), then load it with cash. They work on trains, buses, convenience stores (konbini), vending machines, and an increasing number of restaurants and cafes. If you have an iPhone (iPhone 8 or later), you can add Suica directly to Wallet without a physical card—this works for foreigners, top up with a credit card instantly. For Android, only Japan-market phones support the same. Otherwise, buy a physical Pasmo or Suica at any major station.

ATMs That Actually Work With Foreign Cards

Most bank ATMs in Japan—especially Mitsubishi UFJ, Mizuho, and Resona—will reject your foreign Visa or Mastercard outright. Don’t bother. The two networks that work reliably are:

7-Eleven ATMs (found at every 7-Eleven konbini) – accept Visa, Mastercard, Amex, Maestro, Cirrus, Plus. No fee from 7-Eleven (your home bank may charge).
Japan Post (Yucho) Bank ATMs – found in post offices and some train stations. Also reliable for foreign cards. Fee of ¥110-220 from Japan Post side depending on time/day.

Choose “continue without conversion” at the ATM screen to decline Dynamic Currency Conversion (DCC). This gives you the market exchange rate rather than a terrible rate from the ATM operator. Always let your own bank do the conversion.

Withdrawal fees from your home bank can run ¥110-220 per transaction, so withdraw larger amounts (e.g., ¥30,000) to minimize fees.

Amex, Visa, Mastercard, and PIN

Visa and Mastercard are widely accepted at places that take cards. Amex is accepted at upscale establishments, hotels, and chain stores, but smaller shops don’t bother due to higher fees. Discover cards work via JCB partnership at some terminals.

Most card transactions in Japan require a 4-digit PIN. If you normally sign for purchases, make sure your card has a PIN set before you fly. Without it, the terminal may reject you even if the store says “credit card OK.” Contactless (including Suica) bypasses the PIN for small amounts.

Tipping: Absolutely Not

Repeat after me: you do not tip in Japan. Not in restaurants, not in taxis, not in spas, not at salons, not for tour guides, not at hotels. Leaving coins on the table after a meal will cause the waiter to run after you and return them. Tipping is seen as rude or confusing—it implies the service fee isn’t already included. It isn’t “optional but nice”; it’s actively culturally wrong.

Exceptions don’t exist. If you want to express gratitude, a polite arigato gozaimasu at the door is the correct gesture. In very high-end ryokan or geisha entertainment, a gratuity may be handled through the bill—ask your hotel concierge. Otherwise, keep your wallet closed.

Some upscale restaurants add a service charge (sabisu-ryo) of 10% on the menu or bill. That’s fine. It’s not a tip; it’s an itemized fee.

Otoshi (Tsukidashi) — The Legit Cover Charge

When you sit down at an izakaya (Japanese pub), the server will often bring a small dish without you ordering it. This is otoshi (or tsukidashi), a cover charge generally ¥300-500 per person. It’s not a scam—it’s the Japanese equivalent of a “table fee,” and they’ll add it to your bill. Legit and expected; no need to fight it.

Tax Refund for Tourists

You can get a refund of the 8-10% consumption tax on purchases of ¥5,000 or more (tax-exclusive) at participating shops. Look for a TAX FREE sign at the register. You present your passport (make sure you have the paper immigration sticker, not just a stamped passport if you’re on e-gate), and the shop deducts the tax immediately. Your items will be sealed in a special bag. Do not open the bag in Japan—customs may ask to see the sealed items at departure, and if the bag is opened, they could demand the tax back. In practice, they rarely check, but follow the rule. Keep receipts handy for scanning at the airport customs terminal.

Vending Machine Culture

Tokyo is dotted with vending machines on every corner. Drinks cost ¥120-150 for a bottle of tea, soda, or water. Most machines now accept Suica/Pasmo as well as cash. You can also find machines that sell hot drinks (can warmer option) and even snacks. Tap water is safe to drink everywhere, so refill a bottle, but the vending machine ecosystem is part of the experience—convenient, ubiquitous, and often cheaper than a konbini.

100-Yen Shops: Daiso, Can-Do, Seria

Need a cheap toothbrush, travel-sized shampoo, snack stash, or a gift for someone back home? Hit a 100-yen shop. Daiso is the most famous, with everything priced at ¥100 plus tax (so ¥110 total). Can-Do and Seria are also excellent. Quality is higher than dollar-store stereotypes—many items (socks, kitchen tools, snacks) are genuinely worth buying. Great for last-minute luggage items or picnic snacks.

Cash Etiquette

When paying with cash, don’t hand the money directly to the cashier. Use the small tray at every register. Place your bills face up, neatly aligned, and any coins on top. It’s not a test—it’s just how it’s done. The cashier will count, say the amount, and place change back on the tray. Take it, bow or nod slightly, and move on. This applies everywhere from konbini to Michelin-starred omakase counters.

Currency Exchange

Airport exchange counters (e.g., Travelex at Narita/Haneda) offer reasonable rates, generally within 1-2% of mid-market. SBJ Bank counters (SBI Shinsei Bank) in places like Shinjuku Station have some of the best rates and no commission—look for their orange logo. Avoid money changers in tourist-heavy areas like Asakusa’s Nakamise Street or the stands around Kabukichō—they mark up the rate. Best strategy: bring a small amount of yen from your home bank for immediate needs, then withdraw larger amounts from 7-Eleven ATMs using a fee-free debit card.

Practical Summary

Always carry ¥10,000-20,000 cash for small shops, temples, and emergencies.
Get a Suica or Pasmo on your phone (iPhone) or as a physical card for all transit and convenience purchases.
Use 7-Eleven ATMs for fee-free withdrawals; decline DCC.
Do not tip under any circumstances. Say thank you instead.
Tax refund on ¥5,000+ eligible purchases; keep items sealed until home.
Vending machines take charge via Suica; drinks ¥120-150.
100-yen shops for cheap supplies; look for Daiso, Can-Do, Seria.

For more operational nitty-gritty on Tokyo, see the main Tokyo survival guide. If you suspect you’ve been targeted by a local con, check Tokyo scams explained. Need 24-hour services or pharmacy info? Head to Tokyo round-the-clock survival.