Japan Introduces Stricter Payment Regulations: What You Need to Know
Tokyo, Japan - The Japanese government has introduced new payment regulations aimed at enhancing credit card security and reducing fraud. Effective April 1, 2025, merchants will be required to implement full authentication for all online ecommerce transactions.
New Regulations: Credit Card Security Guidelines 5.0
The new guidelines require merchants to use 3D Secure (3DS) technology to verify customer identities. This means that customers who shop online from Japan will need to authenticate their payments using a password, fingerprint, or facial recognition.
Exemptions from 3DS Requirement
- Business-to-business transactions
- Transactions initiated from devices that do not support 3D Secure, such as game consoles and smart speakers
What You Need to Do
Adyen, a leading payment platform, is urging merchants to prepare for the changes by implementing 3DS technology.
“It’s essential to stay on top of the latest payment regulations to keep your business and customers protected.”
Adyen recommends early planning and gradual implementation tailored to each business’ needs. Merchants who fail to implement full authentication by the deadline may face penalties, including direct investigation by the Ministry for Economy, Trade and Industry and potential termination of their merchant agreement.
Key Dates
- March 2025: Disable functionality to bypass PIN entry for in-store transactions in Japan
- April 1, 2025: Implement full authentication for all online ecommerce transactions
Staying Compliant with Adyen
Adyen is offering guidance on how merchants can implement 3DS technology and stay compliant with the new regulations. For more information, please contact their team.
Broader Effort to Improve Credit Card Security in Japan
The Japanese government has also introduced a fraud detection tool that allows merchants to identify and prevent fraudulent transactions. The new regulations are part of a broader effort to improve credit card security in Japan.