METI Ministry of Economy Trade and Industry of : Businesses Adopted to Introduce and Demonstrate a Common Settlement System for Sector-based Introduction of IC Transactions Among Sellers and Other Entities

On December 26, 2016, an operator of subsidy projects for the FY2016 Program for Promoting Security Measures in Credit Card Transactions, namely, Japan Consumer Credit Association (JCA), selected two pairs of businesses, i.e., [i] CGC Japan Co, Ltd. and S.B. Systems Co., Ltd. and [ii] Japan Hotel Association and Mitsubishi UFJ NICOS Co., Ltd., to adopt as businesses that will introduce and demonstrate a common settlement system for the sector-based introduction of IC transactions among sellers and other entities.

1. Outline of the program

Japan needs to develop a better environment for tourism, in which visitors from overseas are able to enjoy their trips in a more comfortable manner. Many of these visitors utilize credit cards as their major settlement means, 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 yet 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 an environment in which people are able to use credit cards in a safe and secure manner should be developed immediately.

Based on this situation, the government of Japan submitted to the Diet the Bill on the Act for Partial Revision of the Installment Sales Act, aiming to require sellers and other entities that handle credit cards to take security measures for credit cards, e.g., introducing settlement terminals for IC transactions. Following this, the Diet approved and established the bill on December 2, 2016, and the revised Installment Sales Act was promulgated on December 9, 2016.

As an approach to the smooth enforcement of the revised Installment Sales Act, the program aims to encourage sellers and other entities that handle credit cards to efficiently and smoothly introduce a new system which accepts IC chip cards and, to this end, will support projects for introducing and demonstrating a common settlement system for the sector-based introduction of IC transactions among sellers and other entities.

2. Adoption of the businesses

JCA, an operator that will conduct subsidization projects for businesses and other entities, called for applicants that will introduce and demonstrate a common settlement system for the sector-based introduction of a new system which accepts IC chip cards among sellers. Through a screening of applicants by an examination committee of external experts, JCA decided to adopt two pairs of businesses as follows:

• Adopted businesses:
• CGC Japan Co, Ltd. (corporate number: 2011101008920) and S.B. Systems Co., Ltd. (corporate number: 4011101003110)
• Japan Hotel Association (corporate number: 3010005004439) and Mitsubishi UFJ NICOS Co., Ltd. (corporate number: 8010001000016)

Note: For details of the projects that these businesses will implement, visit the JCA website:

Release date

December 26, 2016

Division in Charge

Commerce Supervisory Division, Commerce, Distribution and Industrial Safety Policy Group