Cash and credit card in Japan

What is the best way to exchange or get cash in Japan? I am from the US and I do have a Citibank account.

Also when I was travelling couple years a go, the recommendation was always use your credit card for purchases. Is it still true? My credit card has a cash back of 1% but I am not sure how the exchange rate+foreign charge will add up in the end, compared to the exchange rate/charge w/ cash. Thanks!

Also when I was travelling couple years a go, the recommendation was always use your credit card for purchases. Is it still true?

I'd recommend that when available you should use your credit card the best rates. But you'll need to have cash on hand as well. Either exchange at Narita since they have good rates for USD, or withdraw from your US bank account at a Japanese Postal ATM for a slightly better rate. Postal ATMs are easy to find across Japan.

My credit card has a cash back of 1% but I am not sure how the exchange rate+foreign charge will add up in the end, compared to the exchange rate/charge w/ cash. Thanks!

The credit card will be charged a 3% foreign transaction fee. With 1% cash back it would be a 2% total fee. If you exchange cash today at Narita the exchange rate works out roughtly to a 3.5% fee. Overall its a small difference, but credit card has both the best rate, good safety, and is the most convenient so I'd recommend using it as much as you can.

I'm assuming that the exchange rates at Centrair at Nagoya would be the same as at Narita?

Thanks. Dump question...I have never used ATM in Japan or the post office. If I have a Citibank ATM card, can I just insert it to any ATM machine or it has to be Citibank? Are the rates the same? And do I need special PIN or it is no different from if I were to use my card in the US?

If I have a Citibank ATM card, can I just insert it to any ATM machine or it has to be Citibank?

There are only Postal Bank ATMs at the post office. Put your card in and select English on the touchscreen.

Are the rates the same?

What do you want to compare to? Postal atm withdrawal and...

And do I need special PIN or it is no different from if I were to use my card in the US?

Same pin as you would use at an atm in the US.

I just spent 6 weeks comparing MC at the Postal Bank, traveler's checks, and US$ cash. The best exchange rate was with the travelers checks. At Narita, I changed $500 cash, $500 checks, and withdrew Y50,000 from a PO ATM all on the same day (within an hour). The checks were the best rate and the cash was the worst. My bank didn't charge me anything for the MC use as the card was a debit card and I just got whatever rate they used (probably NY). The difference was about Y2.5 per dollar between the TC and cash. The rest of the exhanges were not simultaneous, but comparing the rates, the checks were always on top.

Never the less, I'll probably use the MasterCard in the future just because it's so much faster and easier than putting up with Japanese banks when cashing checks or cash. There are a lot of postal ATMs around for MasterCard or Visa. 7-11s are now only good for Visa, and I got charged a Y250 transaction fee by one 7-11 ATM at Centrair, I think.

The bank your card is issued from doesn't matter as long as it's tied in with the Cirrus or Plus international networks. If you have one of those logos on the card, you're all set. If not, you have to check with your bank. In Japan, only the 7-11s and the POs are widespread and tied to these networks. Some banks, such as Sumitomo, are also tied in. All others will spit your card back out when the information is submitted. We know, we tried a lot just to see.

Citibank has banks and its own ATMs in many Japanese cities. Your Citibank ATM card will definitely work in those, too, not just the Post Office. Not at other banks' ATMs, though, even if they show a network symbol. Be sure your PIN is only four digits. If it is longer, change it before you go.

Now that doesn't mean it's the best rate, but it is convenient, especially in Tokyo, where they have a lot of branches. You can take out just small amounts if you want to, without worrying about a per-use fee or interest rates. Citibank didn't charge us to use our ATM card in Japan (we used it at both the Citibank ATMs and at the Post Office), but they do add a transaction fee (3%, I think) to whatever conversion rate they use. Check the Citibank web site to find specific locations (you will find the addresses, but note that the map feature is very bad).

fee depends on your account.

with my account i pay no forign transfer fees or whatever you call them. it has a higher monthly account fee, but its MORE than worth it due to the money it saves me on exchanges.