Translation COVID-19 slows down the process of converting magnetic cards to chip cards

Due to the impact of the COVID-19 epidemic, the roadmap for conversion of magnetic cards to chip cards is currently significantly affected, which may be difficult to achieve as planned.

Chip card technology using base standards (VCCS) is being invested by banks to focus on safety and integration of utilities for customers when using.

However, due to the impact of the COVID-19 epidemic, the roadmap for conversion of magnetic cards to chip cards is currently significantly affected, which may be difficult to achieve as planned.

Vietnam Thuong Tin Commercial Joint Stock Bank (Vietbank) and Vietnam National Payment Joint Stock Company (NAPAS) have signed a cooperation agreement to implement the base application for NAPAS contactless domestic chip cards in payment. transportation, is expected to be implemented by the end of 2020.

The implementation of this contactless payment card is evaluated to bring convenience to users, saving operating costs of traffic ticket management system of traffic operators.

According to Mr. Nguyen Dang Hung, Deputy General Director of NAPAS, using non-contact NAPAS domestic chip cards in traffic payment will mhhhang again the safety and convenience, opening up utility services for users. This is also an important activity for popularizing non-cash payment methods to the majority of people.

“We hope that the use of VCCS chip card technology does not stop at the story of ATM withdrawals, shopping, transportation tickets used in the inner city, but towards expanding the scope of use in all activities. payment all over the country, ”said NAPAS representative.

Thus, in addition to limiting the risks of fraudulent frauds in card payment, ensuring payment security and safety for customers, integrating applications into chip cards will bring many opportunities to spread out. Experience for customers as well as contribute to promoting cashless payments in Vietnam today.

According to the State Bank’s schedule specified in Circular No. 41/2018 / TT-NHNN dated December 28, 2018, providing for bank card operations, by the end of 2020, 100% of ATMs and card accepting devices at a card selling point operating in Vietnam, the card payment institution must comply with the local standard on chip card domestically.

This time is near, but in reality the implementation in banks still faces many difficulties.

Nguyen Minh Tam, Deputy General Director of Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank), said that the orientation of Sacombank in the coming time is to convert all existing cards to chip cards, not maintain magnetic cards. However, the number of new chip cards accounts for 50% of the total card volume at Sacombank.

High percentage of magnetic cards mainly falls into domestic cards; while international cards issued by Sacombank a few years ago were chip cards and contactless cards.

According to Mr. Tam, the conversion of magnetic cards to chip cards has been implemented by Sacombank since June 2019, but due to the limited cost and time, it affects the implementation schedule.

In addition, during the first four months of the year, banks’ operations were greatly affected by the COVID-19 epidemic, so the conversion of chip cards was delayed. Banks are difficult to contact, direct access to customers in card conversion.

Therefore, the representative of Sacombank proposed that the State Bank consider extending the conversion time to chip cards, instead of following the planned schedule. Because with the current conditions, it is difficult for banks to achieve this requirement.

NAPAS representative also acknowledged that the COVID-19 pandemic was an objective cause that slowed the transition to chip cards.

In recent months, NAPAS has hardly been able to access banks or card suppliers to implement the conversion.

As the National Financial Switching Center, the conversion of magnetic cards to chip cards is one of NAPAS’s important solutions in developing the current payment infrastructure.

Currently, NAPAS is working closely with banks to convert bank cards from magnetic cards to chip cards in accordance with the conversion roadmap specified in Circular No. 41/2018 / TT-NHNN.

“In 2020, NAPAS will endeavor to complete the certification of the card conversion system for all banks. Besides, researching and adding contactless cards to support banks to access new payment services ”, said Mr. Nguyen Dang Hung, Deputy General Director of NAPAS.

By the end of the first quarter of 2020, NAPAS has completed the certification of domestic chip card standards for 26 banks. At the same time, deploying certification of domestic chip card standards for card and equipment suppliers.

Source: https://vietnambiz.vn/dich-covid-19-lam-cham-tien-do-chuyen-doi-the-tu-sang-the-chip-20200530155155014.htm