METI
Font Size Change
S
M
L
Easy Web Browsing tool

Action Plan 2018 for the Consolidation of Security Measures for Credit Card Transactions Compiled ("Action Plan 2018") To advance the development of an international-level environment for credit card settlement

On March 1, 2018, the Credit Transaction Security Council (secretariat: Japan Consumer Credit Association (JCA)) held a meeting and formulated Action Plan 2018 by revising Action Plan 2017 formulated in March 2017, a compilation of measures that entities involved in credit card transactions, e.g., credit card companies (issuers and acquirers) and credit card merchants, should take. Action Plan 2018 aims to develop an international-level security environment for credit card transactions by 2020.

1. Background

In recent years, Japan has been facing an increase in the number of incidents involving leaks of personal credit card information by unauthorized access targeting the computers of credit card merchants with insufficient security measures. These leaks also trigger an increase in the number of victims involved in unauthorized use of credit cards, including transactions by forged credit cards and spoofing online transactions.

In this situation, the government of Japan decided on the revision of the Installment Sales Act and to consolidate security measures for credit card transactions to achieve the development of environments in which consumers are able to use credit cards in a safe and secure manner. The revised Installment Sales Act was promulgated on December 9, 2017, and will come into force on June 1, 2018.

The Action Plan 2018 compiled by the Credit Transaction Security Council is positioned as practical guidelines in the security measures under the Installment Sales Act. Therefore, businesses taking the measures stipulated in Action Plan 2018 or those equivalent to or higher than them are considered as those satisfying legal standards for security measures. Accordingly, businesses involving credit card transactions are required to steadily advance efforts that comply with Action Plan 2018 as guidelines.

2. Major revised rules of Action Plan 2018

1) Adequate protection of credit card information

  • Encouragement of credit card merchants to not retain credit card information or to take equivalent to or correspondent thereto
    • The revised plan stipulates that credit card merchants involved in mail- or telephone-order shopping should not retain customers’ credit card information or should take specific measures equivalent or correspondent thereto.
    • The revised plan stipulates that face-to-face merchants should not retain customers’ credit card information or should take additional measures equivalent or correspondent thereto.

2) Prevention of unauthorized use of credit cards

  • Encouragement of face-to-face merchants to introduce settlement terminals for IC transactions as a countermeasure against forged credit cards
    • The revised plan stipulates guidelines for specific industries, such as gas stations and railways, in introducing settlement terminals for IC transactions.
  • Encouragement of non-face-to-face merchants, e.g., merchants operating E-commerce, to take measures for prevention of unauthorized use, e.g., requesting credit card users to input their passwords for authorization and introducing new systems to detect unauthorized use by the analysis of shopping history data and accumulation of information on product shipment destinations
    • The revised plan describes streamlined approaches to risk-based countermeasures against unauthorized use of credit cards.

3) Information conveyance to consumers and other credit card users

  • Based on the Diet’s resolution incidental to the revision of the Installment Sales Act, the revised plan stipulates the dissemination of a logo for IC credit card affiliated stores and other means to make such affiliated stores noticeable to consumers so as to raise public awareness and recognition of such stores.
  • The revised plan stipulates the encouragement of efforts for raising consumers’ understanding and recognition of E-commerce merchants’ countermeasures against unauthorized use of credit cards.

For the text and a summary of Action Plan 2018, visit the JCA website below. For more information, contact the JCA Security Measures Promotion Center.

Release date

March 1, 2018

Division in Charge

Commerce Supervisory Division, Commerce and Service Industry Policy Group

Ministry of Economy, Trade and Industry1-3-1 Kasumigaseki, Chiyoda-ku, Tokyo 100-8901, Japan Tel: +81-(0)3-3501-1511
Copyright Ministry of Economy, Trade and Industry. All Rights Reserved.