Ginza Night Time Guide

Impact of PIN Bypass Abolition on the Ginza Club Industry and How to Respond [2025 Edition].

Impact of PIN bypass abolition on the Ginza club industry and how to respond [2025 edition].

On November 12, 2024, the Japan Credit Card Association (JCCA),Elimination of PIN bypasshas been officially announced. This decision is expected to have a major impact on the Ginza restaurant industry, including upscale clubs.

This article provides an in-depth analysis of the background to the announcement, its impact on the Ginza club industry, and how to respond.

What the article reveals

  • Background and Reasons for Elimination of PIN Bypass
  • PIN Bypass Elimination Schedule Details
  • Changes in the Settlement Process in the Ginza Club Industry
  • Impact on customer experience and its risks
  • Challenges and solutions faced by store operations
  • Specific measures for PIN bypass elimination
  • Advantages of introducing handheld and touch payment terminals
  • How to inform customers and strengthen support systems
  • Importance and Content of Employee Training Programs
  • Strategies for the Future of the Ginza Club Industry

What is PIN Bypass Abolition? Background and Overview

What is a PIN bypass?

What is PIN bypass?A system that eliminates the need to enter a PIN when paying by credit card and authenticates with a signature.It is. This system was designed to facilitate smooth payments by customers and has been used especially in situations where quick service is required, such as in upscale clubs and restaurants.

Why is it being discontinued?

There are two main reasons behind JCCA's decision to discontinue the PIN bypass

  • Enhanced Security
    Signature authentication carries a higher risk of fraudulent use than PIN authentication, and the purpose of improving security is cited in light of the current situation where fraudulent use of credit cards in particular is on the rise.
  • Compliance with international standards
    PIN authentication (PIN authentication) is the mainstream worldwide, and Japan is working to bring it in line with international standards.

obsolescent schedule

Touch SettlementThe PIN is required for all credit card transactions except for

Impact on the Ginza club industry

Upscale clubs in Ginza are characterized by a unique culture and operating style, and the elimination of the PIN bypass will have the following effects on the way the industry operates and the customer experience

1. changes in the settlement process

It is no longer possible to smoothly complete a transaction with only a signature as before, and the following changes are required.

  • PIN entry is now mandatory.
    A payment terminal is used at each table, and the customer must enter his or her own PIN.
  • Increased settlement time
    This may take longer than before because of the additional PIN entry process.

2. impact on customer experience

A pleasant and smooth customer experience is vital to an upscale club, and the elimination of the PIN bypass raises the following issues

  • Privacy concerns
    More people may be reluctant to enter their PINs where other customers or employees can see them.
  • Decrease in Convenience
    Inconvenience is expected to increase, especially for elderly and foreign customers who cannot remember their PINs.

3. impact on store operations

Stores will have to deal with new operational costs and employee training:

  • Terminal renewal costs
    The introduction of portable payment terminals and contactless touch payment terminals will be essential, increasing the initial investment.
  • Employee Training Needs
    Training is required to adapt to new payment flows and to improve skills in explaining them to customers.

Measures to be taken by the Ginza club industry

The following are specific measures that the club industry can take to survive and maintain customer satisfaction in response to the elimination of the PIN bypass.

1. upgrade of payment terminals

Essential measures for store operations include the following terminal installations

  • Introduction of portable terminals
    Staff carry the terminal to the customer's seat and have the customer enter the PIN on the spot for smooth payment.
  • Introduction of touch-sensitive payment terminals
    Proactively introduce contactless payment methods to reduce the need for PIN entry.

(2) Informing customers

It is important that information regarding the elimination of the PIN bypass be communicated to customers as early as possible.

  • Implementation of advance notice
    Explain the changes in an easy-to-understand manner through DM, official website, and SNS.
  • Establishment of a support system
    Enhance support for customers who have forgotten their PIN or are unfamiliar with touch payments.

3. employee training

Develop training programs to help employees adapt to new payment methods.

  • Learning new terminal operations
    Thorough training on how to operate handheld and touch payment terminals.
  • Improve customer service skills
    Maintains customer satisfaction by improving attentive explanation and support skills for unfamiliar customers.

Comparative Table of Impacts and Response Measures

Questions about PIN bypass discontinuation (FAQ)

When was the PIN bypass discontinued?

The system will be completely discontinued at the end of March 2025. After that date, PIN will be required for all credit card transactions, except for touch transactions.

Why was the PIN bypass discontinued?

There are two main reasons: first, to standardize PIN authentication, which is more secure than signature authentication from a security enhancement perspective; and second, to comply with international standards, as PIN authentication has become the mainstream worldwide.

What should I do if I forget my PIN?

You will need to contact your credit card issuer to reset your PIN. If you plan to use your PIN at an upscale club, we recommend that you verify your PIN in advance.

Can I continue to use touch payments?

Yes, touch payment is available as before. If the amount of payment is less than a certain amount, the payment can be completed without entering a PIN.

Will I have to spend more time accounting at the club?

Since PIN entry is required, a slight increase in time is expected compared to conventional signature authentication. However, with the introduction of portable payment terminals, it is expected that more stores will aim to make payments as smooth as possible.

Will my privacy be protected?

Each store plans to take measures to protect privacy when entering PINs, such as installing portable payment terminals and blindfolding the user when entering PINs.

What happens if I use more than one card?

Each card requires the PIN to be entered. When using multiple cards, it is recommended that you confirm the PIN for each card in advance.

How does the store prepare for this?

Various preparations are underway, including the introduction of portable payment terminals, upgrading to terminals that support touch payments, training employees on the new system, and informing customers of the new system.

Are credit cards issued overseas eligible?

Yes, for payments in Japan, cards issued overseas are subject to the same PIN bypass elimination.

Is a PIN always required for high value payments?

Yes, a PIN must be entered for all high value payments that exceed the available amount for touch payments. This is a particularly important measure from a security enhancement perspective.

Summary: Turning the PIN bypass repeal into an opportunity

While the elimination of the PIN bypass is a major challenge for the Ginza club industry,Enhanced Securityand ... andWidespread use of touch paymentsThis could create new opportunities for the company. By taking the appropriate steps quickly, you will be able to adapt to the new era of payment methods without compromising the customer experience.

In order to maintain the competitiveness of the industry as a whole, we must be flexible and keep a close eye on future trends.

 

Article Supervisor

Yuya Hachimine, CEO

Representative Director of ZENNO GROUP, Inc. known as a leader in the night work industry in Ginza. He worked for 14 years as a black-shirted worker in a high-class club in Ginza, and based on his experience, he provides various services for the industry. In order to improve the inefficient work system, he founded ZENNO GROUP Inc. and has contributed to the development of the industry.

Yuya Hachimine's SNS and related links