December, 2002

Tokyo, December 20, 2002 - Automatic transfers from JCB cardmember bank accounts to pay for credit card use can now be limited to a maximum amount set by the cardmember with JCB's new service. This is the first time this option has been offered to the Japanese credit card market, where card users usually decide a payment plan at the time of purchase. While the revolving balance function, the standard in the United States market, is available with monthly payments set at a fixed amount by the cardmember, this tends to appeal only to those consumers who wish to defer payment on their purchases. The new choice was designed by JCB to further develop Japan's latent demand for revolving balance credit functionality.

The appeal of this plan is based on the fact that payments in Japan are normally made by bank transfer, with the draft amount determined by the credit card company. With the new JCB You decide what to pay! option, cardmembers set the maximum monthly amount that may be drafted by the credit card company. The card balance may be cleared in one month, or if purchases and other amounts due exceed the maximum, the remainder is rolled into the card's revolving balance. With existing cards any unpaid amount is subject to finance charges from the closing date, but under the new option no charges apply until after the date of the first monthly payment. The maximum monthly payment amount may be set in increments of 5,000 yen, which can be registerd and changed via telephone or internet as well.

JCB is currently involved in making sure that its cardmembers are aware of their new option, including modifying the JCB card application form for selection of a maximum monthly payment. JCB anticipates that one million cardmembers will choose this option in the first year, and that revolving balances will increase by 50 billion yen.