(Nikkei BP Group)
(No.1 High-Tech News Site in Japanese)
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| Debit Cards Start Circulating in Japan
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January 8, 1999 (TOKYO) -- The Japan Debit Card Promotion Association on Jan.
4 started the use of debit-type cash cards issued by financial institutions
to settle purchases at retailers.
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The association comprises the Ministry of Posts and Telecommunications, about
900 financial institutions and 100 retailers. It will issue a monthly report
on the utilization of debit cards.
At Seibu Department Stores Ltd. in Shibuya, Tokyo, a ceremony to commemorate
the launch of the service was held by officials from the Ministry of Posts
and Telecommunications and various financial institutions.
Debit cards entail a system to provide cash cards issued by financial
institutions with a function to settle payments. When a debit card holder
buys products or services, the payment settlement can be made through a bank
account after a shop terminal reads the debit card and the customer inputs a
security code.
Every member company in the association expressed its intention to introduce
debit cards. However, only eight financial institutions, including post
offices and eight retailers, Seibu, and Japan Travel Bureau Inc., started to
accept debit cards on Jan. 4.
Customers are required to use only those cards issued by a financial
institution which has business relations with the retailer. Industry sources
believe that debit cards will become widespread only after October 1999.
That's when more cards will be available for settlement following the
establishment of a clearing center to take care of transactions between
financial institutions.
The association will issue a report on the usage of debit cards in
mid-February, for distribution to each of the member companies.
Related story: Settlement Center for Debit Cards to
Start in Oct. 1999
(BizTech News Dept.)
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