Though credit cards are gaining in popularity, Japan is still very much a cash society ; even in major cities you'll be settling most bills in ready money. Thanks to the country's low crime levels and a surprisingly undeveloped banking system, most Japanese carry around relatively large amounts of yen, and it's fine for you to follow suit. That said, it's always safest to carry the bulk of your money in travellers' cheques , with the added advantage that in Japan they attract a slightly better exchange rate than notes. The most widely accepted cheques are American Express, Visa and Thomas Cook. You'll have no problem changing dollar or sterling travellers' cheques in major towns and cities, but it would be wise to carry an emergency reserve of yen travellers' cheques or dollars cash if you plan to visit more remote areas.

When exchanging either cash or travellers' cheques, banks usually offer the best rates, with little variation between them and no commission fees; look for banks announcing "Foreign Exchange Bank" in English outside the front door. Remember to take your passport along in case it's needed, and allow plenty of time, since even a simple transaction can take twenty minutes or more. Note that, while all authorized foreign exchange banks accept dollars and the vast majority will take sterling, other currencies can be a problem even in Tokyo; if you're stuck, Tokyo Mitsubishi Bank handles the widest range of currencies and has branches in most large cities.

Main post offices often have an exchange counter where you can change cash or travellers' cheques in eight major currencies, including American, Canadian and Australian dollars, sterling and the euro; their rates are usually close to the banks' and they have slightly longer opening hours (Mon-Fri 9am-4pm).

If you need to change money at any other time, big department stores often have an exchange desk, though most only handle dollars or a limited range of currencies and might charge a small fee. Alternatively, you could try a major hotel ; whilst hotels are only supposed to change money for their guests, some might be persuaded to help in an emergency. In rural areas, however, you'll be lucky to find a bank or anywhere else offering exchange services, so make sure you've got plenty of cash before heading into the sticks. Finally, when changing money, ask for a few ¥10,000 notes to be broken into lower denominations; these come in handy for ticket machines and small purchases.