Written by Greg Lane
Multi-currency debit cards from companies like Wise and Revolut have become a mainstay of international travel. Simply put, they will save you money on foreign currency transactions and international transaction fees (they don’t have any), and will offer better exchange rates when converting funds from your home currency than you can get with your credit card.
But is there more to this? Japan is a “cash society”, right? Well, yes, Japan is famously averse to credit cards, with many smaller establishments (especially outside the bigger centers) only accepting cash. However, the good news is that this is changing quickly.
As of 2024, according to Japan’s Ministry of Economics, Trade and Industry, the number of “cashless” (which includes both cards and other QR Code or NFC-based payment) transactions exceeded 40% of all transactions — with a longer term goal of 80%. So while still lagging, you can get by more and more without cash, making cards a good option (with a small reserve of cash).
How do the cards work?
They’re regular debit cards attached to a multi-currency account (basically a bank account, but the providers are not legally banks). You add funds from your domestic bank account or credit card, then these can be transferred at any time to foreign currency balances.
If you add $US500 to your card and transfer half to yen, you’ll have a USD balance of $250 and a JPY balance equivalent to the amount you transferred. If you use the card in Japan, it will first use the JPY balance until it has been used up. After this it will dip into your USD (or other currency) balances and exchange to JPY at the current exchange rate.
Advantages of using a multi-currency card
- Cards are contactless/touch-enabled and can often be added to Apple Pay or Google Wallet
- It’s a debit card, so no credit check or high credit score required
- Since it’s a debit card, you can theoretically set a budget and stop your spending from getting out of control
- No overseas usage charges
- Better exchange rates than traditional credit cards
Downsides of using multi-currency cards while traveling in Japan
After you’re fully verified, using the card should be plain sailing. The biggest disadvantage over using a regular credit card is the absence of reward miles.
Even if you top up from your miles credit card, the transaction will be considered a cash advance, so you won’t earn miles on your credit card.
Is it actually worthwhile?
So how bad are the rates on your credit card? From our experience, the conversion loss on credit-card transactions can be up to 5% compared to using a multi-currency debit card. If you’re buying a round-trip Shinkansen ticket to Kyoto for ¥26,640, then you could be throwing away ¥1,332 (not including extra transaction fees) to your credit card provider per ticket.
So the simple answer is yes, even considering potential miles rewards on your credit card.
What are the options?
Wise
Wise (formerly Transferwise) is a well-established player. Originally gaining a reputation as a quick, cheap and easy way to transfer funds internationally, Wise removed the “transfer” from the name as they moved more towards a bank-like model.
The Wise card should work anywhere that accepts credit cards, including convenience stores. supermarkets and taxis. Some users on Reddit report that the card must be activated by making an ATM withdrawal before it can be used. Also, there are limitations on non-Japanese cards in general. For example, you may have problems charging the Pasmo transport payment app.
Depending on your country, there may be quite extensive verification procedures. In Japan it includes scanning of your My Number card and live video verification that you are a real living person.
A big benefit of Wise is its popularity. Because so many people have one, you can easily send money to friends or colleagues if you need to split a bill (which isn’t a common accommodation at Japanese restaurants).
Wise Visa or Wise Mastercard
With Wise, both Visa and Mastercard are options. Effectively there is little difference between the two, although Visa has a slightly higher acceptance rate in Japan.
Revolut
Revolut is the main rival of Wise, with a similar range of offerings.
In our experience, it works, but when you run into problems, support isn’t great. I was told a number of times that my card “should” be OK to use, but it wasn’t, which lead to my funds being tied up in limbo. You can take our anecdote with a grain of salt though — on Trust Pilot Revolut (4.5) rates slightly better than Wise (4.3)
Practicalities of multi-currency debit cards
Don’t forget your PIN
While contactless payment terminals are widespread, smaller stores may only have chip and PIN, so you’ll need that code.
Adding funds
Funds can be added by local bank transfer (from your home bank account) or they can be added by credit card. Both Wise and Revolut have restrictions based on the method used to add funds. For example, if you add funds by credit card, you can’t withdraw them as cash from a Japanese ATM.
As mentioned above, adding funds via credit card is considered by your card company as a cash advance. Depending on your plan, this may incur interest charges.
Using a VPN to access your bank
Keep in mind, if you’re trying to access your bank online from Japan (to add funds), your bank may restrict your access due to your location outside your home country. One way around this is to use a VPN such as NordVPN.
