Job Discussion Forums

[Black_Beer_Man]

There are many businesses in Japan that do not accept credit cards. Event ticket sellers (for big name concerts) insist on C.O.D. (cash on delivery of the ticket) and will not accept credit cards as payment.

The inn that I stayed at n Kyoto refuses to take credit cards. Cash only.

And this evening I was talking to the courier company Yamato and they told me that if I wanted to prepay a delivery of goods, I'd have to use a bank transfer.

Don't Japanese businesses understand that accepting credit cards facilitates business? It probably increases business in many cases.

I am going to forget about sending the item I want to send with Yamato because I cannot be bothered to run to the bank to do a bank transfer. It's too much a hassle.

Why are credit cards like kryptonite to Superman for Japanses business? It doesn't make sense to me.

[rxk22]

I can see why people don't like them, but businesses? I have never understood that.

Perhaps, it is because of the bubble? When it popped, CCs were getting back in the west, and Japan just didn't have the money/CapEx money to dump into it, so it never got done?

Or deflation? Perhaps, the way the vender receives the payment gives them the shaft via delays, favoring the CC company and they only benefit form Japan's deflation? I dunno man, good Q

[HLJHLJ]

Credit cards are an incredibly expensive way to do business, Japan doesn't need them, so why would they bother? It's still a cash society because it's safe enough to be. Plastic has caught on in the West because people don't feel safe carrying wads of notes around. That's pretty much a non-issue in Japan.

If you need to do a bank transfer you do it online or by phone, plus most things can be paid for at your local conbini.

Accepting CC might increase business from foreigners, because we are used to using them, but it's unlikely to have much effect on Japanese customers. So why would businesses choose to give a big chunk of their profits to credit card companies, just to attract a few foreigners?

[Inflames]

[HLJHLJ]

[Inflames]

JCB research ( http://www.jcbcorporate.com/news/pdf/report2012.pdf ) shows that the average person used credit cards 5.3 times in a month for a total balance of 49,000 yen. This can't be compared to normal average spending as you need to break it down for each type of retailer. At the same time, there is research showing people spend more on credit overseas ( http://www.livescience.com/2849-study-credit-cards-spending.html ) and nothing seems to suggest this wouldn't hold true in Japan.

People might not say it, but younger Japanese use credit cards a lot. I'm not sure about older people, but my guess is that they don't use their cards that much. Some people here save a ton of money, but others sit around and would be homeless with nothing to eat if they lost their job.

[nightsintodreams]

Another thing you have to remember about Japanese credit cards is that they're not really credit cards in the way we think of credit cards.

The whole credit card balance is due to be paid each month so you can't let your balance (debt) accumulate. You can however choose at the counter when you buy something to pay in one payment or in monthly installments.

I'd imagine a big reason credit cards are so popular in the west is because they allow you to spend thousands of pounds and make minimum payments each month, this then enables people to spend more money than they can afford to (until it catches up with them that is).

[Pitarou]

It's not the people. It's the banks.

Japan's financial system is pretty backwards, and receiving payments by credit card is much harder here than elsewhere.

[kah5217]

Only places I saw big credit card use was at Aeon and gas stations. More than once did the station attendant try to get me to sign up for one.

[Mr. Leafy]

I knew a woman who owned a small shop and she said it took a long time, four to six months sometimes for the CC company to pay the store. If that's true i can see why stores don't like them. when i had a Japanese credit card it could take three months for purchases (online or over the counter) to appear on my bill so it could be true.

[Black_Beer_Man]

Back in my country, I could have many of my bills such as internet service or storage locker just charged to my credit card every month automatically. I had nothing to think about except to make sure I at least made my minimum payment on my credit card.

Here in Japan, I have a lot of utilities on automatic withdrawal. I hate it because I send money home every month and sometimes don't leave enough in the account to pay the bills. Then, the bills accumulate and they get pissed with me. So inconvenient.

[Inflames]

[rxk22]

[Pitarou]

[Black_Beer_Man]