Money

Currency

The currency in Japan is called the yen, denoted by ¥. Coins come in denominations of ¥1, ¥5, ¥10, ¥50, ¥100, and ¥500. Bills come in denominations of ¥1,000, ¥2,000, ¥5,000, and ¥10,000. All coins get used (though you may find it hard getting rid of ¥1 coins).

Some people like to arrive in a foreign country with that country's currency already in hand, but I do not find it necessary for Japan. Narita Airport has several exchange counters for all incoming international flights that offer better exchange rates than what you'd get abroad, as well as ATMs. Change enough money to last several days, since exchanging money is not as convenient in Japan as it is in many other countries. And remember, Tokyo is one of the most expensive cities in the world.

Personal checks are not used in Japan. Most Japanese pay with credit cards or cash -- the country's overall crime rate is so low, you can feel safe walking around with money (but always exercise caution). The only exception is on a crowded subway during rush hour or in heavily touristed areas such as Tsukiji or Asakusa. Although the bulk of your expenses -- hotels, major purchases, meals in classier restaurants -- can be paid for with credit cards, bring traveler's checks for those times when you might not have convenient access to an ATM for cash withdrawals, especially outside Tokyo in more rural areas.

Although the conversion rate varies daily and can fluctuate dramatically, the prices in this guide are based on the rate of US$1 to ¥105, or ¥100 to US95¢.

ATMs

The best way to get cash away from home is from an ATM (automated teller machine). Most ATMs in Japan, however, accept only cards issued by Japanese banks. Your best bet for obtaining cash, therefore, is a post office, all of which have ATMs that accept foreign bank cards operating on the Cirrus (tel. 800/424-7787; www.mastercard.com) and PLUS (tel. 800/843-7587; www.visa.com) systems. The catch is that even though the ATM may be located outside the main postal transaction area, machines are operable only during limited hours (depending on the post office, that may be until 6 or 7pm weekdays and until 5pm on weekends). Besides post offices, other places with ATMs that might accept foreign-issued cards include Citibank (which usually accepts both Visa and MasterCard and sometimes American Express as well), large department stores, and Narita Airport. Note that there is no public American Express office in Japan.

Look at the back of your bank card to see which network (Cirrus or PLUS) you're on, be sure you know your personal identification number (PIN) and your daily withdrawal limit before leaving home. Also keep in mind that many banks impose a fee every time a card is used at a different bank's ATM, and that fee can be higher for international transactions than for domestic ones. For international withdrawal fees, ask your bank.

In addition to bank cards, credit cards can also be used to get cash advances from an ATM. Keep in mind that credit card companies try to protect themselves from theft by limiting the funds you can withdraw outside your home country, so call your credit card company before you leave home. And keep in mind that you'll pay interest from the moment of your withdrawal, even if you pay your monthly bills on time.

Traveler's Checks

Although traveler's checks are something of an anachronism now that ATMs have come onto the scene, traveler's checks are still useful in Japan, where ATMs for foreign-issued cards are limited. Traveler's checks have a slight advantage in that they generally fetch a better exchange rate than cash and also offer protection in case of theft. Note, however, that in some very remote areas, even banks won't cash them. Before taking off for small towns, be sure you have enough cash.

You can get traveler's checks before you leave home at almost any bank. Otherwise, you can get traveler's checks by phone for American Express (tel. 800/221-7282), Visa (tel. 800/732-1322), and MasterCard (tel. 800/223-9920) in denominations of $20 to $500 or $1,000, plus a 1% to 4% service fee.

In Tokyo, all banks displaying an AUTHORIZED FOREIGN EXCHANGE sign can exchange currency and traveler's checks, with exchange rates usually displayed at the appropriate foreign-exchange counter. Banks are generally open Monday through Friday from 9am to 3pm, though business hours for exchanging foreign currency usually don't begin until 10:30 or 11am (be prepared for a long wait; you'll be asked to sit down as your order is processed). If you need to exchange money outside of banking hours, inquire at your hotel. Likewise, large department stores also offer exchange services and are often open until 7:30 or 8pm. Note, however, that hotels and department stores may charge a handling fee, offer a slightly less favorable exchange rate, and require a passport for all transactions.

Credit Cards

Credit cards are convenient for obtaining cash (provided you know your PIN) and for paying for accommodations, meals at expensive restaurants, and major purchases, with a better exchange rate than what you can get for either cash or traveler's checks at a bank. Keep in mind, however, that when you use your credit card abroad, most banks assess a 2% fee above the 1% fee charged by Visa, MasterCard, or American Express for currency conversion on credit charges. But credit cards still may be the smart way to go when you factor in things like exorbitant ATM fees and higher traveler's check exchange rates (and service fees).

The most readily accepted cards are MasterCard (also called Eurocard), Visa, and the Japanese credit card JCB (Japan Credit Bank); many tourist-oriented facilities also accept American Express and Diners Club. Shops and restaurants accepting credit and charge cards will usually post which cards they accept at the door or near the cash register. However, some establishments may be reluctant to accept cards for small purchases and inexpensive meals so inquire beforehand. In addition, note that the vast majority of Tokyo's smaller and least-expensive businesses, including many restaurants, noodle shops, fast-food joints, ma-and-pa establishments, and the cheapest accommodations, do not accept credit cards.