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Japan facing credit card number shortage

Japan is running out of 16-digit credit card numbers amid a government effort to encourage electronic payments and a surge in online shopping during the Covid-19 pandemic, according to local press reports.

  9 6 comments

Japan facing credit card number shortage

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

Japan had around 283 million credit cards in March 2019, but the number has been on the rise since the government introduced a point reward system for cashless transactions last October. Meanwhile, card payments have become more popular during the pandemic lockdown.

The first six digits of a card number relate to country, brand and other information, with the final 10 decided by the issuer. According to the Mainichi Shimbun newspaper, issuers are concerned that there could soon be a shortage of digit combinations from the seventh onwards.

The problem could be addressed by adding a digit but this would cost tens of billions of yen and cause disruption.

"Although we want to avoid increasing the number of digits as much as possible, I think that ultimately, our only choice is to carry the expense burden on our own," a card firm exec tells the paper.

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Comments: (6)

Keith Appleyard

Keith Appleyard IT Consultant at available for hire

The first six digits of a card number identify the Card Issuer. ISO7812 was updated in 2017 to introduce 8-digit Issuer numbers.

With a single 6-digit IIN (or a block of 100 8-digit IINs) there is scope for 999,999,999 16-digit cards (the final digit is a check digit).

So if Japan wants a national reward scheme for the 126 million population (or the 110 million over the age of 15), 12 or so 8-digit IINs would suffice.

Don't panic.

Ketharaman Swaminathan

Ketharaman Swaminathan Founder and CEO at GTM360 Marketing Solutions

Does this assume that every number is used for credit card? I thought credit cards used only Mod10 compliant numbers, which is a subset of "every number". 

Keith Appleyard

Keith Appleyard IT Consultant at available for hire

All Identity numbers are compliant with ISO 7812 mod-10, whether it be the SIM card in your mobile phone, a Payment Card, or a Loyalty Card or a Travel Card.

Keith Appleyard

Keith Appleyard IT Consultant at available for hire

Just been interviewed by BBC World Service on this article [Finextra must be famous!] : I made suggestions as to how they could service this new Rewards system without having to impact the Credit Card schema.

A Finextra member 

Agree with Keith, no need to panic.  tokenisation would also help allieviate the pressure on card numbers.

Ketharaman Swaminathan

Ketharaman Swaminathan Founder and CEO at GTM360 Marketing Solutions

All identity numbers may be compliant with Mod10. But my point is different: When the total number of numbers possible is 999,999,999, how can all of them be identity numbers, hence Mod10 compliant, hence suitable for being used as Credit Card number? 

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