Cash, cards and ATMs, how money actually works here
The money question I answered most at the desk was not "how do I exchange money," it was "why did my card just get declined at a ramen machine." Here is the system.
Cards work at anything with a chain logo, and at most sit-down restaurants in central Tokyo. They fail at exactly the places you came for: the six-seat ramen counter, the yakitori stall, the temple amulet office, the retro kissaten. That is what the cash is for.
The 7-Eleven ATM is the traveler's bank. Every branch, open all night, English menus, takes Visa, Mastercard, Amex, basically everything foreign. Pull 20,000 yen at a time and stop thinking about it.
Your IC card eats the coin problem. Load your Suica or Pasmo and tap it at konbini, vending machines and station shops. Without it you accumulate a pocket of 1-yen coins by day three; with it you never make change at all.
One warning that saves real money: when a card terminal offers to charge you in your home currency instead of yen, always choose YEN. The "convenient" home-currency option carries a hidden exchange markup, every time.
Is Japan still cash-only?
Not anymore, but it is not card-everywhere either. Department stores, chains, konbini and most restaurants take cards. Small ramen shops, old izakaya, shrines, market stalls and some ticket machines still want cash. Carry 10,000 to 20,000 yen and you are covered.
Which ATMs accept foreign cards in Japan?
7-Eleven ATMs take basically every foreign card and have English menus, that is the reliable answer. Japan Post Bank ATMs also work. Regular Japanese bank ATMs mostly reject foreign cards, do not take it personally.
Should I exchange money before coming to Japan?
No need. Airport rates at home are usually worse than simply withdrawing yen from a 7-Eleven ATM after you land. Pull one chunk instead of many small withdrawals to save on fees.
Can I pay with my phone in Tokyo?
Apple Pay and Google Pay work at most chains via the iD/QUICPay readers, and your Suica in the phone wallet covers transit, konbini and vending machines. Between phone Suica and one credit card you rarely open your actual wallet.