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 for Foreign Trade of Vietnam, said that banks are actively implementing ATM cards in accordance with domestic standard VCCS card standards, complying with EMV international standards according to the schedule set by the State Bank. However, the implementation is still not satisfactory.

Specifically, the progress of replacing the card acceptance device (POS machine) is ensuring the roadmap, but the card issuance schedule is not as expected.

“The card issuance schedule depends on the cardholder himself, the bank’s communication information to the cardholder. Therefore, the progress of card issuance from May to now has not been as expected, currently only about 10% of cards are transferred to chip cards.

Therefore, it is necessary for the efforts of banks in 2020 because the State Bank’s roadmap is that by the end of 2021, banks will have to replace all cards with chip cards ”- Mr. Dao Minh Tuan said.

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The progress of converting magnetic card to chip card is limited

As for Vietcombank, Mr. Dao Minh Tuan confirmed that the progress will be ensured according to the schedule set by the State Bank.

“That is, by the end of 2020, all ATMs and POS systems will ensure the acceptance of chip cards according to VCCS standards; By the end of 2021, we will issue and try to replace the whole magnetic card with a chip card.

Here I want to say is to ensure enough cards for customers, especially large customers. But the replacement depends on the cardholder, and the bank will issue enough when customers need it ”- Mr. Dao Minh Tuan said.

Leaders of the Bank Card Association also informed that all banks now said that the whole change from magnetic card to chip card is free for cardholders.

In the next 2 years, the development of the chip platform and the added utilities and services integrated on the chip card, the replacement of the VCCS standard will be the foundation to help the bank increase many other services, many facilities. Other social benefits like health, education on bank chip cards.

The domestic chip card was officially launched on May 28, 2019, the first 7 banks of Vietnam, namely Vietcombank, Vietinbank, BIDV, Agribank, Sacombank, TPBank, and ABBank.

According to the SBV’s roadmap, by December 31, 2019, commercial banks will convert at least 30% of the number of cards from domestic, 35% of ATM and 50% of existing POS to public. Technology chip exposed and non-contact.

All ATMs and POS machines on the market ensure compliance with the Domestic Chip Card Standard (VCCS) by December 31, 2020. By December 31, 2021, all domestic cards in circulation of card issuers shall comply with the basic standards on domestic chip cards.

Currently, Vietnam has 48 domestic card issuers with the number of 76 million cards, more than 261,000 POS machines and 18,600 ATMs, of which most POS have followed the EMV Standard, so the deployment of domestic chip cards On devices that accept cards will not be too complicated.

(Source: Capital Security Newspaper)