Stored-Value Cards

Today is my last one in Japan. I will be taking a plane back to Los Angeles and then continue back to Salt Lake. It has been a lot of fun here in Tokyo. My parting thought before heading back to the States is the ubiquity of stored-value cards here in the Far East.

I am always using my credit card to make purchases back home. It is easier than carrying cash and then I make sure to pay the full bill at the end of the month to avoid any extra charges. The problem with credit cards is that merchants need to be connected to bank card network. Otherwise there is no way to verify that the card is valid and the transaction is recorded correctly. With stored-value cards, there is an amount physically stored on the card. When a purchase is made, the price is subtracted from the card's balance and it doesn't require any communication with a central bank.

Stored-value cards are used all over Japan. When I arrived at the airport on Saturday evening, I picked up a card and have been using it for train travel around Tokyo. Then a few nights ago, I was in the mood for a little dessert. I stopped into a 7-Eleven and bought a Kit Kat. Rather than having to use cash, I just swiped my stored value card. I have to say it was very convenient.

There are problems with stored-value cards though. There are a number different card providers and not all of them are accepted everywhere. That means I can use my Suica card for trains and convenient stores. But to get lunch at the corporate cafeteria, I need an Edy card. There is also a Pasmo card, but I haven't bothered to pick one up.

Another problem is that if you lose your card, you can't get your money back. That is a huge incentive to keep a minimum amount of money on the card and not load it up with cash. Furthermore there are some unscrupulous individuals that are running around with card readers pulling cash off people's cards. All someone has to do is bump up against you with a card reader on the train and money is transferred from you to them.

It was interesting to see stored-value cards in action. I wouldn't want to replace my credit card with one, but they definitely are faster at the check-out counter. Especially when you need a Kit Kat before heading back to the hotel late at night.