Domestic credit cards: Increasing convenience for customers, repelling black credit

The advantages of domestic credit cards have attracted customers’ attention and are expected to contribute to repelling black credit. In recent years, the COVID-19 epidemic has had a great impact on the banking and financial market in general and the payment sector in particular. However, this is also an opportunity for non-cash payment services to develop. Banks offer many programs to support and remove difficulties for people and businesses to recover from COVID-19; continue to promote non-cash payments, promote the application of digital technology, enhance innovation in the provision of banking and financial products and services towards simplicity and convenience, continue to research reduce service fees to suit the needs and affordability of all people and businesses. In particular, domestic credit cards recently launched by banks have attracted the attention of customers because of many advantages such as spending before and after paying later, maximum interest free time up to 55 days, payment network. widely, transaction fees are lower than many other credit cards … Domestic credit cards contribute to promoting a healthy consumer financial market and restrict black credit Consumer credit in many developed countries is also considered as a solution to credit consumer loans to serve essential needs, contributing to consumer demand stimulation, and restricting informal credit. In Vietnam, domestic credit cards recently issued by banks and Napas offer credit-based consumer spending at a reasonable fee. Cards using chip technology and uniform standards (VCCS) are expected to promote non-cash payments, contribute to the implementation of a comprehensive national financial strategy and step by step repel black credit; improve security and safety for cardholders. In addition to the feature of spending first and paying later like other credit cards, this domestic credit chip card also has many outstanding benefits such as a maximum interest free period of up to 55 days, much more than for 45 days on other credit cards; is accepted for payment and used on the payment network at 235,304 POS and 14,386 ATM to accept available domestic debit chip cards from all banks; reasonable costs for issuers, merchants and customers. Domestic credit cardholders can also make payments when buying goods, using services at merchants, paying via internet, and online merchants. The credit limit of domestic cards is determined by banks for each group of customers. In addition, domestic credit cardholders can withdraw cash at all domestic ATMs and Napas’s affiliated networks in Korea, some ASEAN countries such as Thailand, Malaysia … at a reasonable cost. . This domestic credit card is aimed at low-middle-income earners, 3-5 million VND / month, with simple registration and card opening procedures, hoping to attract more users such as farmers and public people, people in remote and isolated areas – the subjects vulnerable to the “attack” of black credit. In particular, the form of disbursement via domestic credit cards is cheaper than international credit cards. Specifically, for cash withdrawal transactions, the expected fee of 1-2% of the transaction value (the minimum fee is from VND 10,000-20,000) is much lower than that of international credit cards being issued. on the market (currently at 4%). This is considered a good choice for customers when there is an urgent need to spend in cash, helping users not have to look for informal credit channels such as black credit. Besides, if making payment transactions, the other cardholder is also completely free. Thus, the payment of agricultural necessities, materials … up to several tens of millions of VND can also be done easily. This is a solution that is expected to limit black credit. It is known that this domestic credit card product is issued by Vietnam National Payment Joint Stock Company (NAPAS) and 7 banks (VietinBank, Viet Capital Bank, ACB, HDBank, BAOVIET Bank, Sacombank and VietBank). recently. The event recorded a strong transformation of the domestic payment card market with the most diversified and complete product lines ever, including Debit Cards, Credit Cards and Prepaid Cards according to a unified standard. . At the ceremony, Deputy Governor of the State Bank of Vietnam Nguyen Kim Anh emphasized that banks and Napas should continue to coordinate to build a multi-application domestic chip card ecosystem, in which focusing on credit card development. domestic market as an important solution to bring convenience to users and contribute to repel black credit; expand the network to accept domestic chip card payment. Potential to develop the domestic card market According to the report of the Bank Card Branch of the Vietnam Banking Association, by the end of June 2020, the total number of bank cards in circulation in Vietnam is more than 103 million cards including international cards and cards. inland. Card sales still recorded a high growth rate of 51% in the first 6 months year despite the COVID-19 outbreak. Sales using domestic card spending increased 93%, higher than that of international cards (+ 24%). The proportion of using cards to withdraw cash at domestic cards has quickly shifted to card spending at merchants. In the first 6 months of 2020, the proportion of using domestic cards for cash withdrawal is 84%. In 2019, the rate was 90%, in 2018 it was 94%. Notably, the data of the Vietnam Bank Card Association shows that, from 2017 to 2020, the total sales of using domestic credit cards increased by 25%, the total sales of card payments increased by 132%, the total Cash withdrawal by domestic credit card at ATM decreased by 1%. This shows that there is a change in people’s card usage habits, reducing cash withdrawal at ATMs, and increasing payment transactions. Source: https://thitruongtaichinhtiente.vn/the-tin-dung-noi-dia-tang-tien-ich-cho-khach-hang-day-lui-tin-dung-den-33572.html