True cash back credit cards?

[bunbunaz]

We're moving back to Japan next week and I've been trying to do some research in advance for credit cards. In the U.S. we've always used cards that give cash back as we like the freedom to use our rewards for whatever we want. Trying to compare the various credit card offerings in Japan has been challenging to say the least. From what I can see, the Costco Mastercard appears to be a true cash back card and it looks like starting next year the rewards will be simplified to 1.25% cash back from all purchases (currently you get 1.5% from Costco and 1% from everywhere else). I think Mastercard is widely accepted although I think Visa is probably the most widely accepted credit card in Japan. I could be wrong. It's been known to happen.

Pretty much every other card I've looked at gives you rewards in some kind of points and while most points can be used for purchases, those purchases are limited to places where those points can be redeemed. So comparing which card gives you the better deal is tough given that a lot seems to depend on your shopping habits and where you shop. If you did the majority of your shopping via Rakuten or say Amazon, there are cards tailored to those platforms. It's unclear to me which cards are best suited to those who are not married to a single platform. We do have a Saison International Visa card which has no annual fee (another requirement for us) but its rewards are points. Granted those points can be redeemed for certain things but it still isn't as nice as just getting straight cash back that can be used to pay for anything your heart desires.

We have a U.S. based cash back card (via USAA) that we should be able to continue using in Japan but it's unclear whether we will have any issues using that card for things like utility payments where we may have to input a billing address. Our plan would be to use the same card for utilities (electric, gas, water, internet, keitai, etc.) as well as groceries. If the majority of our monthly expenses can be paid by the same card that seems like the best way to maximize our rewards.

[zeroshiki]

Its a bad idea to use an international card for everyday life in Japan because, with the stricter banking laws and general ignorance, it becomes a roll of the dice if your card gets accepted or rejected at random retailers.

The SMBC card lets you pay for your card bill using their points so its effectively a cashback

[TokyoBoglehead]

Not ture "Cash back" but points can be used to pay your credit card bill, so it amounts to the same.

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I recommend getting the free cards Amazon and Rakuten.

I also recommend JR View cards for those that commute through JR stations. (Points+Suica+Visa CC) (Nominal 500 yen fee yearly).

Finally for travel insurance, lounges etc SMBC NL gold is only 5000 yen a year, free family card, and free +1man bonus if you spend 1 million yen.

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Get the Rakuten card first, then consider a 2nd and 3rd option.

[ClearAsMud]

Credit cards provide the best rebate rates, but if you're set on straightforward (well, relatively straightforward) cash back, you might consider opening an account at Sony Bank and asking for their free Visa debit card (Sony Bank Wallet), which offers 0.5% to 2% cash back depending on your Club S status: 1% cash back (Silver) if you keep 3 million yen in your account or put more than 30,000 yen a month into either investments or foreign-currency deposits; an additional 0.5% (Gold) if your investments and foreign-currency deposits combined total between 5 and 10 million yen; and another 0.5% (Platinum) if the combined amounts go beyond that. See this page for details. Your status also determines how many free ATM withdrawals and bank transfers you get as well as other useful benefits -- full description here.

It's a debit card rather than a credit card, and you have to make something of an effort to get more than 1% cash back, but the cash gets deposited directly into your account the following month, and Sony is a fine choice for a net bank anyway. Maybe as sort of a reserve card?

[bunbunaz]

Appreciate all the advice from everyone. Obviously we have several options and this is more good information that will help us make the best decision for us. I'm sure it might help others as well who are in the market for a new credit card.