How to Carry Money When Traveling — Cash vs Credit vs Wise
Bottom line: carrying large amounts of cash abroad costs you nearly 10% in losses. Credit card as main + Wise as backup is the safest and cheapest combination.
TL;DR
| Method | Real cost | If lost |
|---|---|---|
| Cash (airport exchange, round-trip) | 約10% | ❌ Gone forever |
| Credit card (foreign use) | 約1.6〜2.2% | ✅ Can stop immediately |
| Wise debit card | 約0.4〜0.7% | ✅ Freeze in app |
※ Indicative figures. Actual rates vary by issuer, amount, and currency pair.
1. Carrying lots of cash is the worst mistake
The single worst travel finance mistake is carrying large amounts of cash. Two reasons:
(1) If it's lost or stolen, you will never get it back. Pickpockets, misplacement, hotel safe break-ins — cash that disappears is gone. Reporting to police rarely recovers anything.
(2) You pay steep fees on currency exchange. Airport and street exchange booths add 3-5% on top of the mid-market rate (the "real" rate banks use between themselves). Exchange yen to dollars on the way out, then exchange leftover dollars back to yen at the end of your trip, and you lose nearly 10% round-trip.
Lose ¥100,000 cash to a pickpocket, and ¥100,000 is gone. Lose ~¥10,000 on a round-trip airport exchange. Both risks can be avoided.
2. Worked example: ¥100,000 round-trip at airport exchange
Assumptions (April 2026 rates)：
- Mid-market rate: 1 USD = ¥155
- Airport exchange SELL rate (JPY→USD): 1 USD = ¥164 (+5.8% spread)
- Airport exchange BUY rate (USD→JPY): 1 USD = ¥146 (-5.8% spread)
This is the loss if you exchange and don't spend. In practice, you spend locally — but any leftover cash you convert back suffers the same double-spread loss. Saving foreign cash "for next trip" also exposes you to exchange rate risk.
3. Credit card: real cost about 2%
Credit card transactions abroad are processed at the Visa/Mastercard interbank rate (very close to mid-market). On top of that, your issuer adds a foreign transaction fee of 1.6-2.5%.
Typical fees (Japanese issuers):
Rakuten Card: 1.63%
Epos Card: 1.63%
SMBC Visa: 2.20%
JCB: 1.60%
So for ¥100,000 of spending, real cost is around ¥1,600-¥2,500. Less than 1/5 of airport exchange cost. Plus:
- Can be blocked immediately if lost or stolen (24-hour phone support)
- Fraud is reimbursed under card network rules
- Many cards include travel insurance automatically
4. Wise debit card: around 0.5%
Wise (formerly TransferWise) is a UK fintech specializing in international money transfers and multi-currency accounts. Founded in 2011 by co-founders frustrated with bank fees, now used by 16 million people worldwide.
Wise fee structure:
- Exchange rate is the mid-market rate (no hidden spread)
- Exchange fee varies by currency pair: 0.41-0.70% (USD/JPY is about 0.45%)
- ATM withdrawals free up to £200/month, 1.75% over that
- Card issuance ~¥1,200 (one-time)
Real cost to spend ¥100,000 in USD:
Airport cash: ~¥5,800 (one-way)
Credit card: ~¥1,800
Wise: ~¥450
One caveat: Wise does not include travel insurance, and fraud protection is less generous than credit card networks. Main = credit card, backup = Wise is the realistic combination.
5. What happens when you lose them
Cash
Gone. Police report rarely helps. ¥100,000 lost = ¥100,000 loss.
Credit card
Stop immediately via 24h phone. Fraud reimbursed under network rules. Even charges before block usually reimbursed.
Wise
Freeze card with one tap in app. Request replacement in-app. Balance remains.
6. Bottom line: practical combination
- Main payment = credit card
Travel insurance, best fraud protection, widely accepted. Rakuten Card and Epos Card are strong choices with 1.63% fees. - Backup = Wise debit card
For ATM withdrawals and lowest exchange costs. Use where cards aren't accepted (street vendors, small shops). - Cash: minimum only (¥10,000-¥20,000 equivalent)
For arrival taxi, tips, emergencies. Withdraw locally from ATM using Wise card — cheapest option. Airport exchange booths are a last resort. - On return: keep small leftover foreign cash for next trip (or spend at airport)
Converting leftover cash back to yen at airport exchange costs ~10%. Better to keep it for next trip or spend at duty-free.