Japan Credit Card

 

 

Japan, despite being a highly technologically advanced nation, continues to be a predominantly cash-based society. Credit card usage in Japan is typically restricted to hotels and large department stores, as most retailers and utility providers do not accept credit cards. Nonetheless, all major credit card companies, including Visa, MasterCard, American Express and Diner’s Club offer different categories of credit cards in Japan.[br] 

Japan Credit Card System 

Most credit cards in Japan have an annual membership fee, which may range up to 10,000 yen p.a. This membership fee enables cardholders to benefit from the following features:

• Airline mileage points,

• Travel insurance,

• Discounts at hotels and

• Cash-back programs at select department stores

 

Besides, some credit card companies in Japan offer special “members only” card for specific segments of population, such as women and students.

 

The Japanese credit card payment system is created on the lines of the original American Express program; wherein you either split a credit card charge or pay the full amount at once. Typically, a credit cardholder in Japan can select from the following payment alternatives:

 

• Full or one-time payment (ikkatsu barai): This option involves paying the full monthly credit card outstanding at once, generally enabling cardholders to benefit from full interest waivers.

• Multiple payments (bunkatsu barai): This entails dividing the total credit card balance into a fixed number of payments, which are subject to interest at a predetermined rate.

 

Additionally, a few companies provide the option of revolving credit (ribo barai) payments. This option involves setting up a minimum monthly payment, which is typically a specific percentage of the monthly card balance.

Japan Credit Card Usage: Information for Travelers[br]

Since cash is the preferred mode of payment in Japan, travelers often have hard time making payments with their credit cards. In fact, credit card facilities are scarcely available in Japanese retail outlets and stores, particularly outside Tokyo. Moreover, ATMs that accept foreign credit cards are limited throughout Japan, and many only operate during business hours. Consequently, it is imperative for a traveler to obtain detailed listing of relevant credit card ATM locations from their banks, before traveling to Japan.