Payment Services Act

A person who intends to obtain registration referred to in the preceding Article must, pursuant to the provisions of Cabinet Office Order, submit a written application for registration containing the following particulars to the Prime Minister:

trade name or other name, and address;

the amount of capital or contribution;

name and location of the business office or office pertaining to the business of issuing prepaid payment instruments;

names of officers;

the type, the name, and the amount available for payment, etc. of the prepaid payment instruments;

if a specified period of time which is available for the purpose of paying consideration for the purchase or renting of goods, etc. or the receipt of the service being provided or for the purpose of claiming the delivery or provision of those goods, etc. or services, or the expiry date is set for the prepaid payment instruments, the period of time or due date;

the details and means of the business of issuing prepaid payment instruments;

if a part of the business of issuing prepaid payment instruments is entrusted to a third party, the details of the business pertaining to the entrustment, the name or trade name or other name and address of the third party to whom the business of issuing prepaid payment instruments is entrusted;

location and contact address of the business office or office that handles complaints from the users about the issuance and use of prepaid payment instruments or provide consultations for the users; and

other particulars specified by Cabinet Office Order.

A document in which the applicant pledges that the applicant does not fall under any of the items of Article 10, paragraph (1), documents concerning finance, and other documents specified by Cabinet Office Order must be attached to the application for registration referred to in the preceding paragraph.

The Prime Minister must, when an application for registration referred to in Article 7 is filed, register the following particulars to the register of issuers of prepaid payment instruments for third-party business, except when the Minister refuses the registration pursuant to the provisions of paragraph (1) of the following Article:

particulars listed in the items of paragraph (1) of the preceding Article; and

date of registration and registration number.

If the Prime Minister registers the particulars under the provisions of the preceding paragraph, the Minister must notify the applicant to that effect without delay.

The Prime Minister must make the register of issuers of prepaid payment instruments for third-party business available for public inspection.

The Prime Minister must refuse registration when an applicant falls under any of the following items, or a written application for registration or its accompanying documents contain a false statement about important particulars, or lack a statement about important particulars:

a person other than a corporation (including a corporation established under the laws and regulations of a foreign state who does not have a business office or office in Japan);

a corporation that does not fall under any of the following items:

a corporation whose amount of net assets exceeds the amount of money specified by Cabinet Order in light of the geographical scope within which the prepaid payment instruments issued by the corporation can be used and other circumstances; or

a not-for-profit corporation specified by Cabinet Order;

a corporation which has not taken necessary measures for ensuring that goods, etc. or services that one can purchase or rent, or which one can receive the delivery or provision of by using prepaid payment instruments do not cause harm to or are not likely to cause harm to public order or morals;

a corporation which has not established a system that is necessary for making payments to member shops (meaning a seller or lender of goods, etc. that one can purchase or rent or of which one can receive the delivery of by using prepaid payment instruments or a provider of services of which one can receive the provision of by using prepaid payment instruments; the same applies in Article 32) appropriately;

a corporation which has not established a system that is necessary for ensuring compliance with the provisions of this Chapter;

a corporation which intends to use a trade name or other name that is identical to the one currently being used by another issuer of prepaid payment instruments for third-party business or that may be misidentified as another issuer of prepaid payment instruments for third-party business;

a corporation whose registration referred to in Article 7 has been revoked pursuant to the provisions of Article 27, paragraph (1) or (2), or had its registration of the same type in a foreign state (including other administrative dispositions similar to the registration; the same applies in item (ix), (e)) revoked pursuant to the provisions of laws and regulations of the foreign state equivalent to this Act (limited to the provisions of this Chapter and the provisions of Chapter VIII that are related thereto; hereinafter the same applies in this paragraph), and for which three years have not passed from the date of revocation;

a corporation which has been punished by a fine (including a punishment under laws and regulations of a foreign state equivalent to this; the same applies in (d) of the following item) pursuant to the provisions of this Act or laws and regulations of a foreign state equivalent to this Act, and for which three years have not elapsed from the day on which the execution of the sentence ended or from the day on which the sentence ceased to be executed;

a corporation whose officers include a person who falls under any of the following items:

a person specified by Cabinet Office Order as being unable to properly perform their duties pertaining to the business of issuing prepaid payment instruments due to a mental or physical disorder;

a person who has not had their rights restored after receiving an order to commence bankruptcy proceedings, or a person equivalent thereto pursuant to laws and regulations of a foreign state;

a person who has been sentenced to imprisonment or heavier punishment (including an equivalent punishment pursuant to laws and regulations of a foreign state), and for whom three years have not elapsed from the day on which the execution of the sentence ended or from the day on which the sentence ceased to be executed;

a person who has been punished by a fine pursuant to the provisions of this Act or laws and regulations of a foreign state equivalent to this Act, and for whom three years have not elapsed from the day on which the execution of the sentence ended or from the day on which the sentence ceased to be executed;

if an issuer of prepaid payment instruments for third-party business had its registration referred to in Article 7 revoked pursuant to the provisions of Article 27, paragraph (1) or (2), or a corporation had its registration of the same type in a foreign state revoked pursuant to the provisions of laws and regulations of the foreign state equivalent to this Act, a person who was an officer of the corporation at any time during the thirty days prior to the revocation date and for whom three years have not passed from that date or a person specified by Cabinet Order as a person similar thereto.

If the Prime Minister refuses the registration pursuant to the provisions of the preceding paragraph, the Minister must notify the applicant to that effect by indicating the reason therefor without delay.

If any of the particulars set forth in the items of Article 8, paragraph (1) are changed, the issuer of prepaid payment instruments for third-party business must notify the Prime Minister to that effect without delay.

If the Prime Minister accepts a notification referred to in the preceding paragraph, the Minister must register the informed particulars in the register of issuers of prepaid payment instruments for third-party business.

When an issuer of prepaid payment instruments intends to issue high-value electronically transferable prepaid payment instruments, in advance, the issuer must notify the Prime Minister of a business implementation plan stating the following particulars, pursuant to the provisions of Cabinet Office Order:

the maximum amount of unused balance to be recorded in a prepaid payment instruments record account related to the high-value electronically transferable prepaid payment instruments, if the maximum amount is specified;

the method of management of an electronic data processing system to be used to conduct the business of issuing the high-value electronically transferable prepaid payment instruments; and

other particulars specified by Cabinet Office Order as particulars necessary for protecting the users of high-value electronically transferable prepaid payment instruments and ensuring the sound and appropriate management of the business of issuing high-value electronically transferable prepaid payment instruments.

When an issuer of prepaid payment instruments intends to make a change to the business implementation plan notified pursuant to the provisions of the preceding paragraph, in advance the issuer must notify the Prime Minister of the change pursuant to the provisions of Cabinet Office Order.

An issuer of prepaid payment instruments for third-party business must not have another person conduct the business of issuing prepaid payment instruments for third-party business in the name of the issuer of prepaid payment instruments for third-party business.

When issuing prepaid payment instruments, an issuer of prepaid payment instruments must, pursuant to the provisions of Cabinet Office Order, provide users with information on the following particulars:

name, trade name or other name;

amount available for payment, etc. of the prepaid payment instruments;

if a specified period of time which is available for the purpose of paying consideration for the purchase or renting of goods, etc. or the receipt of services being provided or for the purpose of claiming the delivery or provision of those goods, etc. or services, or the due date is set for the prepaid payment instruments, the period of time or due date;

location and contact address of the business office or office that handles complaints from the users about the issuance and use of prepaid payment instruments or provide consultations for the users; and

other particulars specified by Cabinet Office Order.

Notwithstanding the provisions of the preceding paragraph, if the certified association for payment service providers of which the issuer of prepaid payment instruments is a member makes public to the users of prepaid payment instruments the particulars listed in item (iv) of the preceding paragraph pertaining to the issuer of prepaid payment instruments or in other cases specified by Cabinet Office Order, the issuer of prepaid payment instruments is not required to provide information as prescribed in that paragraph with regard to those particulars.

Beyond what is provided for in paragraph (1), an issuer of prepaid payment instruments must, pursuant to the provisions of Cabinet Office Order, take necessary measures for protecting the users of prepaid payment instruments and ensuring sound and appropriate management of business of issuing prepaid payment instruments.