Cash not Credit

Consumers in Japan don't use checks to pay for things. In fact, checks don't exists; banks don't offer checking accounts.

Retail purchases are made by cash or credit card. The concept of a debit card is beginning to catch on now.

For bills and other transactions, payment is made either via a bank transfer or a postal account. For a bank transfer you go to your favorite ATM or branch office armed with the other party's banking information. You specify how much to transfer from your account into theirs, and voila! Bills paid.

At the post office, you can pay with cash that gets deposited into the seller's postal account (the Japanese post office is also a bank). This works well if you are a short term resident who doesn't have a bank account or if you want to make a somewhat anonymous payment.