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Operator of Subsidy Projects Adopted for the FY2016 Program for Promoting Security Measures in Credit Card Transactions

Concerning the FY2016 Program for Promoting Security Measures in Credit Card Transactions, on October 21, 2016, the Ministry of Economy, Trade and Industry (METI) decided to select the Japan Consumer Credit Association (JCA) as an operator of subsidy projects and initiatives under the program for businesses and other entities.

1. Outline of the program

Japan needs to develop a better tourism environment in which overseas visitors in Japan are able to enjoy their trips in a comfortable manner. Many of these visitors use credit cards as a primary form of settlement, but most credit card transactions in Japan utilize magnetic information that is vulnerable in terms of security, and the number of victims involved in credit card fraud (e.g., unauthorized use of forged credit cards) is growing. Magnetic-information-based transactions are especially often seen with sellers that have introduced a POS system but have not introduced IC transactions. To further win inbound demand, Japan should popularize IC transactions among sellers as a business practice, making unauthorized use of credit cards difficult due to the encryption of card information, and immediately develop an environment in which people are able to use credit cards in a safe and secure manner.

Based on this situation, on October 18, 2016, the Cabinet, the government of Japan, decided to approve the Bill on the Act for Partial Revision of the Installment Sales Act, aiming to require sellers that handle credit cards to take security measures for credit cards (e.g., introducing settlement terminals for IC transactions) which was submitted to the 192nd extraordinary session of the Diet.

The program aims to efficiently encourage sellers that handle credit cards to introduce settlement terminals for IC transactions and, to this end, will support projects for introducing and demonstrating a common settlement system for introducing such terminals as a sector-based effort taken by sellers.

2. Adoption of the operator of subsidy projects

From September 6 to 30, 2016, METI called for applicants for an operator of subsidy projects or an association that will conduct subsidization projects for businesses and other entities. As a result of a screening of applicants by an examination committee of external experts, METI decided to adopt JCA as the operator.

JCA will call for businesses and other entities that will introduce and demonstrate a common settlement system to encourage sellers to introduce settlement terminals for IC transactions.

Release date

October 21, 2016

Division in Charge

Commerce Supervisory Division, Distribution and Industrial Safety Policy Group

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