Local Currency in Japan: Can You Use US Dollars in Japan? (2024)

Benjamin White

If you're visiting Japan for the first time, you may be curious about the accepted currency and what currency you should bring along on your travels. In Japan, the official currency is the Japanese yen (JPY), which we recommend obtaining by using Wise's travel debit card to withdraw cash from local ATMs.

Using the local currency for your transactions is best when paying for goods and services. At the same time, some establishments in Japan (like hotels) may accept US dollars, be aware that they will set their own exchange rates between the Japanese yen and the US dollar. This will result in unfavorable prices for you as a US patron.

In this guide, we walk through using US dollars in Japan, how to get Japanese yen cheaply with Wise, and why it's more beneficial for you to use the local currency for your transactions to ensure fair and accurate pricing. Let's get started!

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Does Japan Accept U.S. Dollars?

Establishments in Japan do not accept U.S. dollars as a form of payment. You will need Japanese currency for cash transactions in Japan. In places that do accept physical U.S. dollars, such as hotels, using them may result in very unfavorable exchange rates or additional fees.

Which Currency Is Best to Take to Japan?

If you have a debit or credit card that does not charge international card transaction fees, then your best option is to simply pay by card throughout your trip. Credit card processors (such as Mastercard, VISA, and American Express) use their own exchange rates, but they are typically very close to themid-market exchange rate(usually around 0.5% to 0.9% weaker). You can check Mastercard's exchange rateshereand check VISAhere.

If you want to avoid losing out to those small exchange rate margins, then the best currency to take to Japan is Japanese yen (JPY), as it is the official currency and fully accepted throughout the country. Having Japanese currency ensures smooth transactions and eliminates the need for frequent currency conversions.

What Currency Does Japan Use?

Japan uses the Japanese yen as its official currency. It is the primary medium of exchange in Japan, accepted for all types of transactions. The Bank of Japan is the central bank that issues the local currency.

What Is the Japanese Currency Symbol?

The Japanese currency symbol is the sign, ¥. It is used to represent the Japanese yen (JPY).

Some write the symbol (円), with the symbol and value written as follows: 2,000円.

Using and Exchanging Currency in Japan

The most expensive currency exchange services occur at banks, currency exchange kiosks, and some hotels or airports. We have seen exchange rate margins as high as 10% at airports and with PayPal.

This is why we recommend travel cards like Wise, which give you access to multi-currency accounts. Exchange USD to JPY at or near the real mid-market exchange rate, and get access to those Japanese yen in your digital wallet instantly. Then, use your debit card to withdraw from a Japanese ATM. Best of all, Wise is completely free to sign up.

Where Can I Buy Japanese Currency?

With Wise, you can exchange foreign currency, including USD to JPY with currency conversion costs of 0.5% or lower.

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Wise's multi-currency account makes converting your US dollar balances to Japanese yen balances instantaneous — and at industry-low rates. The free ATM withdrawal allowance with Wise is 30,000 JPY.

Read our full Wise review to learn more.

Potential Bank Fees

You may experience expensive and un-transparent Japanese currency exchange at banks, currency exchange kiosks, and other foreign exchange dealers in touristic or downtown areas. We highly discourage you from using these options, if possible.

Banks and currency exchange services often charge higher fees than Wise. Furthermore, these companies often apply very weak exchange rates on your conversions and pocket the difference as profit. Some providers may advertise their services as "fee-free," but very often fail to disclose the hidden exchange rate margin fee (which averages at 4% to 7+%).

Is It Better to Exchange Money in Japan?

Rates at brick-and-mortar establishments will often be high, regardless of whether you're in Japan or the US. To minimize costs, consider ordering currency from your US bank days in advance and compare their rates to the mid-market exchange rate (You can find the real mid-market exchange rate on Google,XE.com, orMonito). Pay attention to the margin they charge, aiming for a rate that is well below 4%.

On the other hand, using a digital platform like Wise gives you the flexibility to exchange currency at any time, benefiting from transparent and industry-low rates that are consistently displayed before the transaction. This allows you to make informed decisions based on the current exchange rate.

ATMs and Local Payment Methods in Japan

Using ATMs abroad is often the most cost-effective way to obtain cash while traveling, especially when utilising cards like Wise. One of the reasons is that the withdrawal fees associated with ATMs are typically minimal, around $1 or $2, or even waived entirely if you choose the right ATM or bank.

Additionally, ATMs treat you like a local if you use a travel card like Wise (they don't apply currency exchange altogether). Otherwise, ATMs will use the exchange rate used by your card issuer (MasterCard, Visa, etc). In contrast, airport kiosks tend to have significantly weaker exchange rates, sometimes up to 10% weaker.

Are the ATMs in Japan Safe to Use?

ATMs in Japan are generally safe to use. However, it's best to use ATMs that are attached to a bank rather than a machine standing on its own. Some stand-alone ATMs, especially those in touristic areas, have been known to apply weak exchange rates on your US dollars before withdrawing. This is called a dynamic currency conversion.

Dynamic currency conversion is a process where you're given the option to pay for a purchase or transaction in your home currency instead of the local currency. It may sound convenient, but it often comes with additional fees and unfavorable exchange rates. It's like a middleman converting the currency for you, but they charge you more for the service.

Where Are the Best Places to Find ATMs in Japan?

Here is a list of the best places to find reliable ATMs in Japan:

• 7-11: Yes, the famous convenience store is a bank in Japan. They offer reliable ATM withdrawals from foreign cards, and waive fees altogether if you have a multi-currency account of JPY with Revolut or Wise.
• Consider Postal ATMs: They accept most foreign bank cards, but are only available during post office operating hours. Japan Post ATMs charge 105 yen on regular days, with additional charges on holidays and weekends.
• Avoid airport and tourist areas: ATMs in airports or popular tourist spots often have higher fees and unfavorable rates.

Places You'll Need Japanese Currency

While credit and debit cards are widely accepted, you may be in need of cash at small businesses, markets, street vendors, public transportation fares, and some rural areas in Japan.

Do the Restaurants in Japan Accept Debit or Credit Cards?

Most restaurants in Japan accept debit and credit cards for payment. It's common for establishments to display logos indicating the types of cards they accept, such as Visa and Mastercard. However, it's always a good idea to carry some cash, as smaller or independent establishments may have cash-only policies.

It's good to know, however, that tipping is not customary in Japan. In fact, the server will very likely not accept your tip and ask that you keep it for yourself.

Frequently Asked Questions About Using US Dollars in Japan

• Can I use US dollars in Japan?

  No, establishments in Japan do not accept U.S. dollars as a form of payment.

• What is the best currency to bring to Japan?

  You will need Japanese yen, which you may instantly and digitally exchange for by using Revolut's multi-currency account.

• What is the official currency in Japan?

  The Japanese yen (JPY) is the official currency of Japan.

• What is the symbol for Japanese currency?

  The Japanese yen is often denoted with the following symbol: ¥.

• How can I exchange currency in Japan?

  Exchange currency instantly with Revolut. You may also withdraw cash from ATMs. Bank currency exchange and airport kiosks will be the most expensive method to exchange currency in Japan.

• Where can I buy Japanese currency?

  We recommend that you exchange currency instantly with Revolut or get Japanese yen in cash at local ATMs.

• What are the bank fees for foreign exchange in Japan?

  Expect exchange rate margins of between 4% to 7% for foreign exchange at traditional Japanese banks.

• Is it better to exchange money in Japan?

  Brick-and-mortar money exchange will be expensive regardless of if you exchange in the United States or in Japan. We recommend Revolut to help you avoid fees and inconvenient brick-and-mortar exchange.

• Are ATMs in Japan safe?

  ATMs in Japan are generally safe to use. However, it's best to consider using ATMs that are attached to a bank rather than a machine standing on its own.

• Do Japanese restaurants accept debit or credit cards?

  Yes, most restaurants in Japan accept debit and credit cards for payment.

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