Chip cards enable local card issuers to expand their payment ecosystem into industries such as transport health and insurance. But banks say that converting magnetic cards to chip cards will incur additional costs.
Converting domestic payment cards from magnetic cards to chip cards is one of the tasks approved by the Prime Minister in the Project on developing cashless payment. Deploying this task, on October 5, 2018, the Governor of the SBV issued a set of domestic chip card standards, detailing Vietnam’s domestic card specifications, which are compatible with EMV international standards, preventing tampering. card in physical environment through ATM and POS channels.
The State Bank also issued Circular 41, stipulating the roadmap for conversion to chip cards, the conversion schedule for card acceptance devices at point of sale operating in Vietnam as for card payment organizations until December 31. / 2020, and domestic card issuers in circulation 31/12/2021.
Mr. Nguyen Dinh Thang, Chairman of LienvietPostbank’s Board of Directors, said that when applying the chip card, the system of technology must change, the terminal system, ATM, POS system must change … That entails very costly expenses. big. In addition, changing chip cards for customers also takes time.
Sharing the same view, Mr. Tran Cong Quynh Lan, Deputy General Director of Vietinbank said that when changing to a chip card, the bank had to change a series of machines, the cost of issuing a chip card is also much higher than a magnetic card. However, banks have realized that it is necessary to convert and are determined to transfer magnetic cards to chip cards, turning challenges into opportunities. How can chip cards be integrated and synchronized to pay a lot of expenses such as education, health care, insurance and not merely keeping an ATM account?
According to Mr. Nguyen Quang Hung, General Director of Vietnam National Payment Joint Stock Company (Napas), the bank has made a strong movement in this form of payment. As evidence, at the beginning of the year, there was a ceremony to launch chip cards, when only 7 banks participated. But now Napas and more than 20 banks are ready to switch technology to chip cards.
(Source: Life Science Newspaper)
Other News
Cashless payment: Need drastic from the state management
Promoting cashless payments requires a specific solution, not just propaganda … “The challenge of slowing the transition from magnetic stripe to chip card, what’s the reason?” is the first issue raised during the discussion at the 2019 Electronic Payment Ecosystem Development Forum: Moving with Chip technology by the Vietnam Economic Times in collaboration with Vietnam
Details
More than 1 million magnetic stripe cards have changed to chip cards
Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) said that the bank has converted over 1 million magnetic cards to chip cards According to Ms. Nguyen Hong Van, Director of Vietcombank Card Center, from September 2019, Vietcombank was one of the first banks to deploy new issuance and convert magnetic cards to contactless
Details
Chip-mounted CCCD cards need to apply advanced technology, ensure security etc.
The Minister of Public Security will decide on the model and material of a citizen’s identity card with electronic chips. At the request of the Prime Minister, the card should apply advanced technology to ensure security and safety. Citizen card with electronic chip will support converting country number On October 7, the Government Office sent
Details
Did you know that contactless swipe?
Contactless payment was born, contributing to increasing the confidentiality and security of customers’ information during the transaction process, limiting customers being taken advantage of. Following the payment trend with QR Code, Contactless Payment is a modern payment method, which has just been deployed in Vietnam market recently. Compared with conventional cards, Chip cards with Contactless
Details
COVID-19 Translation: The State Bank implements solutions to support customers
On February 24, the State Bank of Vietnam issued Document No. 1117 / NHNN-TD on the implementation of customer support solutions due to the impact of the COVID-19 epidemic. Accordingly, the current acute respiratory infection due to the new strain of Corona virus (outbreak of COVID-19) is complicated, affecting production and business activities, thereby affecting
Details
Only 10% of ATM cards are converted from magnetic cards to chips
The leader of the Vietnam Bank Card Association said that the progress of issuing bank cards from May 2019 has not reached as expected, only about 10% of ATM cards have been transferred to chip cards. Mr. Dao Minh Tuan, Chairman of Vietnam Bank Card Association cum Deputy General Director of Joint Stock Commercial Bank
Details
