Banks to Introduce Domestic Credit Cards to Promote Cashless Payments | Business



National credit chip cards with unified standards were due to be introduced this week. (Source: Photo from VNA file)

Hanoi (VNS / VNA) – The
Vietnam National Payments Company (Napas) said last week it would work with seven banks to introduce national chip credit cards with unified standards to limit cash payments and fight black credit.

National credit chip cards are expected to officially launch this week. The seven banks include Vietnam Commercial Joint Stock Bank for Industry and Commerce (Vietinbank), Ban Viet Commercial Joint Stock Bank (VCCB), Asian Commercial Bank (ACB), Commercial Joint Stock Bank (HDB) HCM City Housing Development (HDB), Bao Viet Bank (BVB), Sai Gon Thuong Tin (Sacombank) and Vietnam Thuong Tin (Vietbank).

Previously, four state-owned commercial banks issued domestic credit cards, but issuance was temporarily halted due to inefficient operation. Some joint-stock banks were already issuing this type of card but without unified technical standards.

Nguyen Quang Minh, deputy director of Napas, said the new national credit cards will be accepted in all networks of all banks, while previously issued cards were not widely accepted.

“In developed countries, national credit cards are very common,” Minh said. “That the banks join
Does not have issuing national credit cards will significantly help limit
Cash payment and provide more consumer credit options to prevent black credit.

National chip credit cards are highly secure in accordance with State Bank of Vietnam standards and EMV standards – a security technology used worldwide for chip card payments and acceptance devices – developed originally by Europay, MasterCard and Visa, he said.

Cardholders will not have to pay fees for transactions with an interest-free period of up to 55 days compared to the usual 45 days. Acceptance points will have to pay a fee of approximately 1.1-1.3% of transaction values, lower than for other credit cards.

The cash withdrawal fee would be around 1-2% of the transaction value (a minimum of 10,000-20,000 VND per transaction), also well below the around 4% fee for other international credit cards.

Statistics from the Vietnam Bank Card Association showed that domestic credit card operations fell 10% in 2017-2020 and new issues fell 36%.

However, the total transaction value of existing national cards increased by 25% during the period. /.



Leave A Reply