TOKYO -- The Ministry of Posts and Telecommunications has drawn up plans to introduce a new account settlement system with banks to cover payments for its new debit card system, according to the Nihon Keizai Shimbun. The new settlement system could be in place as early as October.
Under the scheme, the major city banks will take turns to be recipient for all the payments that postal savings account holders make using their debit cards. The bank will then distribute the funds to settle accounts at other banks.
The debit card system allows holders of postal savings accounts to buy items at stores using their cash cards. The money is automatically withdrawn from postal savings accounts. The lack of a direct settlement system is currently forcing the postal savings system to send cash or checks to each retailer's bank to cover each transaction.
In the new centralized system, the purchase amount to cover the debit card payment will first be sent to the central post office in Tokyo. Checks will then be transferred to one of the major city banks each day to cover the payments. The bank would then change the checks into cash at the Bank of Japan and distribute the money to other banks.
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