Conversion of chip cards – one of the major goals of the State Bank

According to the SBV’s roadmap specified in Circular No. 41/2018 / TT-NHNN, by the end of 2020, 100% of ATMs and card acceptance devices at point of sale operating in Vietnam of card payment institutions must Comply with local standard chip card.

The first domestic chip cards from Vietnam were officially launched on May 28, 2019. The first seven banks to deploy this type of card include Vietcombank, BIDV, VietinBank, Agribank, TPBank, Sacombank, ABBank.

These are also banks holding about 70% of Vietnam’s domestic card market share. Up to this point, more than 1 year since the introduction of domestic chip cards, chip card technology using base standards (VCCS – Vietnamese chip card technical standards) is being invested by banks. aiming to the safety and integration of utilities for customers when using.

From May 20, 2020, Agribank officially announced the issuance of contactless domestic chip cards according to the most advanced VCCS standards. PVcomBank has also converted all of the magnetic technology ATM cards to EMV chip technology.

At the end of May, Vietbank signed a cooperation agreement with Vietnam National Payment Joint Stock Company (NAPAS) to implement payment of standard application traffic for domestic chip cards …

According to Vietcombank’s share, Vietcombank has basically issued and converted over 1.5 million contactless (contactless) chip cards and upgraded 60% of EDC, over 80% of ATMs accept chip cards according to the set of standards. facility on the whole system.

Or like TPBank, General Director Nguyen Hung said that this bank has officially issued to all new customers of ATM chip cards from May 15, 2019, right after NAPAS issued chip certificates according to VCCS standards for ingot card suppliers.

Previously, from January 2018, this bank succeeded in piloting ATM card according to NAPAS standard and was the first bank to successfully issue a domestic chip card combining contactless feature.

VietinBank is also promoting E-Partner VCCS chip card payment in the fields of health, education and expanding to other transportation areas such as toll collection, payment of services such as public transportation, traffic fines, public administration …

Switching chip cards is one of the major goals of the SBV. By the end of the first quarter of 2020, NAPAS has completed the certification of domestic chip card standards for 26 banks, 09 units / vendors providing card embryos, 05 units / vendors providing card acceptance equipment.

According to the SBV’s roadmap specified in Circular No. 41/2018 / TT-NHNN, by the end of 2020, 100% of ATMs and card acceptance devices at point of sale operating in Vietnam by card payment organizations must comply with Prime standard base on domestic chip cards. Is the roadmap for implementation of banks facing any difficulties?

According to a financial – banking expert, the reason is also quite easy to understand. In the first months of 2020, the complicated development of the Covid-19 epidemic caused the entire operation to be almost stagnant.

For the banking sector in Vietnam, banks also suffer from certain effects, declining profits, and having to “tighten their belts” in many stages in order to reduce costs and create favorable conditions. support for businesses and people affected by the epidemic.

“This has indirectly led to the roadmap for converting magnetic cards to chip cards in many banks,” the expert shared. NAPAS also said that in the first months of the year, this unit could not access to the bank or card suppliers to implement the conversion.

The Covid-19 translation is an objective factor, but it must be added that the fact that it is possible to convert technology from magnetic card to chip card is not a simple story, because the cost is quite large. Moreover, each bank will be entitled to balance and set conversion fees for customers.

Therefore, the conversion fee is also different, it is possible for customers who already own the bank’s card to be free of conversion, and for new customers, the fee will be assessed depending on the level. exploitation of the customer.

“How to be the most harmonious for both banks and customers, but it is important to ensure the smooth, safe and uninterrupted transaction process,” the expert stated.

Vietcombank Deputy General Director, Chairman of Vietnam Bank Card Association, Dao Minh Tuan also spoke, the fee for chip cards is now much lower than the previous period.

Banks themselves have also prepared and equipped with more facilities, infrastructure, invested more with devices that accept cards compatible with both magnetic and chip cards, so the conversion is also convenient. than.

Source: https://thuonghieucongluan.com.vn/chuyen-doi-the-chip-mot-in-nhung-muc-tieu-lon-cua-ngan-hang-nha-nuoc-a104640.html