What happens to a store if a payment processing company goes bankrupt? | Initial steps and cash flow management when sales proceeds are not received
Hello, this is Kane-san.
Cashless payment is convenient. Customers pay with cards or smartphones, and stores simply wait for the deposit date. At first glance, it seems that daily sales are running without any issues.
However, until sales proceeds reach the store's account, multiple businesses such as card companies, payment processing companies, and merchant management companies may be involved. If a company in the middle of this process goes bankrupt, the payment for products or services already provided may not be deposited on the scheduled date.
In the case of Zentoshin Co., Ltd., which received an order to commence bankruptcy proceedings in July 2026, the bankruptcy trustee has provided guidance that unpaid sales proceeds for merchants will be treated as bankruptcy claims. The Small and Medium Enterprise Agency and the Japan Finance Corporation have launched consultation counters and cash flow support for affected businesses.
This article uses the individual case of Zentoshin as a starting point to organize what stores should prioritize when sales proceeds are halted due to the bankruptcy of a payment processing company. While legal recovery prospects and loan eligibility vary based on individual circumstances, there are things you can prepare for in the initial response.
This article is based on public information as of July 17, 2026. For Zentoshin's claim filings, distributions, etc., please always prioritize the latest guidance from the bankruptcy trustee.
Things to know first | Even if it is 'sales,' it is not the store's cash before deposit
With card payments, there is a time lag between the customer's payment and the deposit to the store.
For example, when a store accepts a card payment via a payment terminal, sales proceeds are usually deposited a few days later or the following month based on the contract. During this time until the deposit, for the store, that money is 'sales already earned,' but it is not yet in hand as cash. It is in a state of a right to receive (a claim) against the companies involved in the payment.
The bankruptcy trustee for Zentoshin has informed merchants that unpaid sales proceeds will be treated as bankruptcy claims and cannot be paid on the conventional deposit date. They have stated that they will provide guidance on procedures such as claim filings if the possibility of a distribution arises.
From this, two things are clear.
It is not a case of there being no deposit because the customer has not paid.
That said, it does not mean the store can immediately receive the full amount.
When treated as a bankruptcy claim, the recovery amount and timing depend on the remaining assets, the nature of the claim, collateral and offset relationships, and the progress of the bankruptcy proceedings. The starting point is to check official guidance and your store's contract details, rather than definitive statements on social media such as 'it will definitely return' or 'it will never return.'
What to do in the first 24 hours | The priority is 'stop, preserve, and connect'
In the event of a sudden bankruptcy, information becomes confused. Rather than trying to calculate the recovery amount from the start, you can reduce confusion by acting in the following order.
1. Check the usage status of payment terminals and management screens
First, check official guidance to see if the relevant terminals or online payments are in a usable state. If a suspension of use is announced, it is important not to accept new transactions there. Share which payment methods are usable with store staff as well.
However, do not dispose of terminals or delete contract data on your own based only on information immediately after the bankruptcy. Follow the formal guidance of the bankruptcy trustee or your contracting party regarding the suspension, return, or switching of terminals.
2. Determine the unpaid amount by 'date'
Next, create a list of the unpaid sales. You do not need to wait for a perfect table. First, summarize the following items in a spreadsheet or on paper.
Transaction date
Sales amount
Payment brand/payment method
Original scheduled deposit date
Actual deposit date or status of non-payment
Transaction number or sales slip number
What is particularly important here is to separate the sales amount from 'when it was originally supposed to be deposited.' This is useful for both cash flow consultations and verification during bankruptcy proceedings.
3. Save contracts and evidence without deleting them
Save contracts, terms of service, merchant IDs, sales statements, deposit history, invoices, emails, and records of terminal screens. Since the management screen may become inaccessible later, saving screens as PDFs or taking screenshots is also effective.
It is safer not to think, 'I haven't received a notice for filing a claim yet, so I can prepare the documents later.' While waiting for the official start of proceedings, secure documents that allow the store to reconstruct the facts.
4. Secure alternative payment methods
To continue operations for the day, check which methods you can use, such as cash, other card payments, QR code payments, or bank transfers. When choosing an alternative service, check not only the speed of implementation but also the deposit cycle, costs, management methods for sales proceeds, and cancellation terms.
A short, factual notice to customers is sufficient. For example, post a sign saying, 'Some card payments are currently unavailable. You can use cash or XX payment.' There is no need for the store to explain the bankruptcy of a business partner based on speculation.
5. Create a 7-day and 30-day cash flow statement
The collection timing for unpaid sales is unpredictable. On the other hand, payment dates for rent, inventory, labor costs, loan repayments, taxes, and social insurance premiums will not wait.
At a minimum, list your account balance and scheduled payments for the following two periods:
Next 7 days: Payments necessary to keep the business running
Next 30 days: Projected cash shortages including rent, salaries, inventory, and repayments
It is safer not to treat the unpaid amount as 'cash expected to come in,' but rather as having an uncertain collection date. If you create this table before seeking advice, discussions with financial institutions and support organizations will proceed more quickly.
Support measures are not "compensation," but rather consultation services to help maintain cash flow.
Following the bankruptcy of Zentoshin, the Small and Medium Enterprise Agency has announced special consultation counters, relaxation of requirements for safety net loans, and the start of preliminary consultations for Safety Net Guarantee No. 1 by credit guarantee associations.
As of July 17, 2026, this is at the preliminary consultation stage prior to the official government gazette notification designating Zentoshin as a specified business operator. The certification criteria for Safety Net Guarantee No. 1 include having accounts receivable of 500,000 yen or more, or if less than 500,000 yen, a dependency on transactions with Zentoshin of 20% or more. Use of this system requires certification from the municipality and screening by financial institutions and credit guarantee associations; it is not a system where loans are automatically granted even if conditions are met.
The Japan Finance Corporation is also accepting special consultations regarding loans and repayments at its branches nationwide and through its business fund consultation hotline. Those who may be eligible include small and medium-sized enterprises and small-scale businesses affected by Zentoshin's bankruptcy.
However, there is a point here that should not be misunderstood. These are not systems where the government pays the full amount of unpaid sales on behalf of the company. They are support measures to maintain cash flow through loans, guarantees, and consultations on repayment terms. The available systems, amounts, conditions, and interest rates vary for each business operator.
It is helpful to have the following documents on hand when consulting:
A list of unpaid amounts and supporting documentation
Recent trial balance sheets and financial statements
Copies of bankbooks and recent cash flow statements
Future payment schedules, such as rent, salaries, procurement, and loan repayments
Contracts, notices, and merchant IDs related to Zentoshin
There is no need to postpone consultations just because "funds have not run out yet." It is important to check if you are eligible before your cash flow deteriorates.
Things you should not do while waiting for guidance from the bankruptcy trustee
The greater the anxiety, the easier it is to act in haste and make mistakes. Particular attention should be paid to the following points:
Do not request debt collection or pay upfront fees to unofficial agencies or solicitations on social media
Do not send debt notifications in your own format before official guidance is provided
Do not delete management screens, emails, or sales data
Do not rush to cover unpaid amounts with unplanned, high-interest loans
Do not unnecessarily store or share personal information related to payments, such as customer card numbers
The Shokudanren (Japan Food Service Association) is also calling for caution against suspicious phone calls and solicitations taking advantage of this situation. Please verify the authenticity of any guidance through the official websites of the bankruptcy trustee, government agencies, your financial institution, or industry associations.
Three risk management points to check during normal times
Events like this are not just a problem for stores dealing with a specific company. For all businesses using cashless payments, how to protect sales proceeds before they are deposited is a management issue.
1. Do not concentrate payments with a single company
While consolidating payments with one company makes management easier, the impact of any disruptions or bankruptcy at that company will also be concentrated. Consider whether you can have alternative means while balancing store size and fees.
2. Check the unpaid balance every month
In addition to monthly sales, keep track of how much 'sales that have been processed but not yet deposited' exist. The longer the deposit cycle, the larger the amount of invisible funds.
3. Confirm how sales proceeds are handled at the time of contract
Do not decide based solely on fees and terminal costs; check which company the sales proceeds pass through, whether there are mechanisms for separate management or protection, and how the service is handled in the event of a suspension. If there is any wording you do not understand, it is important to ask questions in writing before signing the contract.
Frequently Asked Questions
Can I ask customers to pay again?
Generally, stores cannot necessarily uniformly re-bill customers for transactions that have already been correctly processed. Because it depends on the transaction status and contractual relationships, first check the payment records and contract details, and consult with the payment brand, the contracting party, or a professional as necessary.
When will the unpaid sales be returned?
Regarding Zentoshin, the bankruptcy trustee states that they will provide guidance on necessary procedures once there is a possibility of dividends. The recovery amount and timing cannot be determined uniformly at this time. Check the official announcements and keep documents that support the unpaid amount.
Should I apply for a loan right now?
It is dangerous to borrow without checking the timing and scale of the funding shortfall. First, create a 7-day and 30-day cash flow statement, and consult early with consultation desks at your financial institution, the Japan Finance Corporation, or credit guarantee associations. Make a decision after organizing the necessary funds and available support measures.
Summary
If a payment processing company goes bankrupt, credit card sales before deposit may be treated as bankruptcy claims
The first things to do are to check terminals, confirm unpaid amounts, save documents, secure alternative payment methods, and create a cash flow statement
It is important not to easily respond to debt filings or recovery solicitations other than official announcements from the bankruptcy trustee
For businesses affected by Zentoshin, there are consultation desks and cash flow support from the government and the Japan Finance Corporation
Support measures are not compensation for losses, but rather loans, guarantees, and repayment consultations to help continue business operations.
Cashless payment is a mechanism for conveniently receiving store sales. However, until the funds are deposited, you are also carrying the credit risk of a third party.
Beyond just low fees and speed of implementation, consider 'how many days can the store survive if the other party stops?' This issue once again demonstrates the importance of that.
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