Uchikura & Co., LLC

You Are Not Allowed to Charge Extra for Credit Card Use in Japan

 

When traveling internationally, one of the interesting differences you notice is how countries handle credit card processing fees.

 

In the United States, it is common to see signs that say “Credit Card Fee 3%.” This means customers who choose to pay by credit card are charged an additional fee to cover the merchant’s credit card processing costs.

 

Japan is different. In general, merchants are not allowed under their credit card merchant agreements to charge customers a higher price simply because they use a credit card. Instead, the cost of accepting credit cards is usually treated as part of the overall cost of doing business and included in the price of products and services.

 

From a merchant’s point of view, credit cards offer convenience and can increase sales, but they also come with processing fees. The question is who should bear that cost—the individual customer who uses the card or all customers through the product price.

 

The answer reflects a difference in business culture. In the United States, the cost may be shown separately as a credit card surcharge. In Japan, the cost is generally built into the price that everyone pays.

 

The same 3% cost exists in both countries, but the way it is presented reveals a fascinating difference in business practices and customer expectations.