Japan to Survey Credit Card Payment Processing Firms

Tokyo, July 14 (Jiji Press)–The Japanese government is considering conducting a survey of credit card payment processing service firms to gain a clearer picture of them, industry minister Ryosei Akazawa said Tuesday. Akazawa made the comments at a press conference after the fallout of the bankruptcy of Zentoshin, a credit card payment processing service provider, was spreading. Zentoshin, based in the western city of Osaka, was not subject to financial oversight under the installment sales law because the company did not extend credit to consumers. Akazawa was cautious about tightening regulations on the industry. Tighter regulations aimed at preventing non-payments to member stores could hurt their finances through unintended consequences, such as higher processing fees and longer payment cycles, he said. Since Friday, the ministry has received 82 inquiries related to Zentoshin’s bankruptcy, including requests for financial assistance. Unpaid funds to member stores have totaled 5.3 billion yen. END [Copyright The Jiji Press, Ltd.]