Payment Services Act

Notwithstanding the provisions of Article 62-3, if a bank, etc. or funds transfer service provider that issues electronic payment instruments (hereinafter referred to as the "issuer" in this Article) does not fall under Article 62-6, paragraph (1), items (viii) and (ix), it may provide electronic payment instruments services (limited to the electronic payment instruments-related business; hereinafter the same applies in this Article and Article 113, item (ii)) with regard to electronic payment instruments issued thereby.

When the issuer intends to provide electronic payment instruments services pursuant to the provisions of paragraph (1), it must submit to the Prime Minister documents containing particulars set forth in the items of Article 62-4, paragraph (1) (excluding item (ix)), a document in which the issuer pledges that it does not fall under Article 62-6, paragraph (1), items (viii) and (ix), and other documents specified by Cabinet Office Order.

An electronic payment instruments service provider must not have another person provide the electronic payment instruments services in the name of the electronic payment instruments service provider.

Pursuant to the provisions of Cabinet Office Order, an electronic payment instruments service provider must take necessary measures for preventing leakage, loss, or damage of information pertaining to the electronic payment instruments services and other measures for ensuring security management of the relevant information.

If an electronic payment instruments service provider entrusts (including the case under multi-tier entrustment arrangements) part of the electronic payment instruments services to a third party, the electronic payment instruments service provider must provide guidance to the third party to whom the relevant business has been entrusted and take other measures necessary for ensuring the operation of the business in a proper and steady manner pursuant to the provisions of Cabinet Office Order.

Pursuant to the provisions of Cabinet Office Order, an electronic payment instruments service provider must provide explanation to prevent users from mistaking its electronic payment instruments services for the business carried out by a bank, etc., funds transfer service provider, or specified trust company, provide information about details of electronic payment instruments, fees and other terms and conditions of contracts related to the electronic payment instruments services, and take other measures necessary for protecting the users of electronic payment instruments services and ensuring the provision of the electronic payment instruments services in a proper and steady manner.

An electronic payment instruments service provider must not, for any reason, receive a deposit of money or other property (excluding electronic payment instruments) from a user, or have a person specified by Cabinet Order as being closely related to that electronic payment instruments service provider deposit a user's money or other property, in connection with the electronic payment instruments services it provides; provided, however, that this does not apply in cases specified by Cabinet Office Order as being less likely to weaken the protection of users.

In connection with its electronic payment instruments services, an electronic payment instruments service provider must manage the electronic payment instruments of the users of electronic payment instruments services separately from its own electronic payment instruments pursuant to the provisions of Cabinet Office Order.

Pursuant to the provisions of Cabinet Office Order, an electronic payment instruments service provider must undergo a periodic audit by a certified public accountant or by an audit corporation, with regard to the state of management under the provisions of the preceding paragraph.

If an electronic payment instruments service provider provides electronic payment instruments services (excluding cases specified by Cabinet Office Order as being less likely to weaken the protection of users of electronic payment instruments services or hinder the provision of electronic payment instruments services in a proper and steady manner), the electronic payment instruments service provider must conclude, with the person specified in the following items (hereinafter referred to as the "issuer, etc." in this Article) according to the categories of cases set forth therein, a contract relating to electronic payment instruments services in which particulars concerning the sharing that will take place between the issuer, etc. and the electronic payment instruments service provider of the liability to compensate users for any loss or damage sustained thereby and other particulars specified by Cabinet Office Order are stipulated, and provide the electronic payment instruments services pertaining to the issuer, etc. under this contract:

if the electronic payment instruments service provider engages in the electronic payment instruments-related business:a person that issues electronic payment instruments handled by the electronic payment instruments service provider; and

if the electronic payment instruments service provider engages in the act set forth in Article 2, paragraph (10), item (iv):the funds transfer service provider referred to in that item.

An electronic payment instruments service provider must take the measures specified in the following items according to the categories of cases prescribed therein:

if one or more designated dispute resolution organizations for electronic payment instruments business (meaning designated dispute resolution organizations of which type of dispute resolution services is electronic payment instruments business; hereinafter the same applies in this Article) exist:measures to conclude a basic contract for execution of procedures with a designated dispute resolution organization for electronic payment instruments business (meaning a basic contract for execution of procedures prescribed in Article 99, paragraph (1), item (viii); the same applies in the following paragraph) pertaining to the electronic payment instruments services; or

if no designated dispute resolution organization for electronic payment instruments business exists:complaint processing measures and dispute resolution measures pertaining to the electronic payment instruments services.

If an electronic payment instruments service provider implements measures to conclude a basic contract for execution of procedures pursuant to the provisions of the preceding paragraph, the electronic payment instruments service provider must announce the trade name or other name of the designated dispute resolution organization for electronic payment instruments business that is the counterparty to the basic contract for execution of procedures.

The provisions of paragraph (1) do not apply during the period specified in the following items for the respective categories of cases prescribed therein:

if an electronic payment instruments service provider who initially fell under the case set forth in paragraph (1), item (i) has come to fall under the case set forth in paragraph (1), item (ii):a period specified by the Prime Minister as the period necessary for taking measures specified in paragraph (1), item (ii) when authorization is granted for the discontinuation of the dispute resolution services referred to in Article 52-83, paragraph (1) of the Banking Act as applied mutatis mutandis pursuant to Article 101, paragraph (1) following the deemed replacement of terms or when the designation is revoked pursuant to the provisions of Article 100, paragraph (1);

if an electronic payment instruments service provider falls under the case set forth in paragraph (1), item (i), when authorization is granted for the discontinuation of the dispute resolution services provided by the designated dispute resolution organization for electronic payment instruments business referred to in that item pursuant to the provisions of Article 52-83, paragraph (1) of the Banking Act as applied mutatis mutandis pursuant to Article 101, paragraph (1) following the deemed replacement of terms or when the designation under the provisions of Article 99, paragraph (1) of the designated dispute resolution organization for electronic payment instruments business referred to in that item is revoked pursuant to the provisions of Article 100, paragraph (1) (excluding the case specified in the preceding item):a period specified by the Prime Minister as the period necessary for taking measures specified in paragraph (1), item (i) when the authorization is granted or the designation is revoked; or

if an electronic payment instruments service provider who initially fell under the case set forth in paragraph (1), item (ii) has come to fall under the case set forth in paragraph (1), item (i):a period specified by the Prime Minister as the period necessary for taking measures specified in paragraph (1), item (i) when designated pursuant to the provisions of Article 99, paragraph (1).

The term "complaint processing measures" as used in paragraph (1), item (ii) means having a person specified by Cabinet Office Order as one who has expert knowledge and experience with regard to consultation regarding complaints on consumer affairs that the consumer made against the service provider or in other areas of consumer affairs provide advice or guidance to employees or other workers who engage in the business of processing complaints from the users or any other measures specified by Cabinet Office Order as similar thereto.

The term "dispute resolution measures" as used in paragraph (1), item (ii) means seeking resolution of a dispute with the user through the authorized dispute resolution procedures or any other measures specified by Cabinet Office Order as similar thereto.