Credit Cards

Credit Cards (クレジットカード) work a little bit differently in Japan. I was actually a little confused the first time I used a credit card in Japan so maybe this will clear some things up. I still use my American credit cards in Japan, its just a matter of communication.

In Japan, banks, paychecks, and credit cards work a bit differently. For example, most people receive no actual paycheck because money is directly deposited in their banks. This is only recently becoming more common in America. Japan also does not use checks...ever. I guess the idea of writing any dollar amount on a piece of paper and being able to use it sounds pretty retarded in the first place. Without checks, credit cards and bills just take the money right from your bank account, a practice that is also becoming more popular in America now.

"So whats the point of a credit card if they just deduct the money from your bank account?" you ask? That didn't quite make since to me either, until I heard the cashier ask me how many times I wanted to charge my purchase at the register. The number you pick is the amount of payments you'll be making. For example, if you say "5" on a purchase of $1000, around $200 per month will be deducted from your Japanese bank account. For those with American credit cards, its easier to just charge it once so that the full charge appears on your next bill.

I suppose people are better at planning for the future in Japan, because you must pick your payment plan at the time of purchase. Considering most jobs in Japan pay you every month, Japanese must be used to planning ahead already.