Vietnam banks to use chip cards only since December 31, 2020

06-Jan-2016 Intellasia | Bao Dau Tu | 6:00 AM Print This Post

The State Bank of Vietnam has issued the Plan No.16/KH-NHNN about switching bank cards from magnetic stripe cards to electronic microchipped cards (chip cards), striving to complete the conversion before December 31, 2020.

The plan implementation is divided into two phases. Phase 1 starts from 2016 until the chip card standards are issued (12-15 months), the card issuers, the card payment organisations focus on preparatory work to be ready for the conversion.

Phase 2 carries out the conversion (since the chip card standards are issued till the end of 2020): The card issuers, card payment institutions issued their official conversion plan and organise the implementation.

At present, Vietnam has more than 96 million cards of all types, in which the majority of Vietnam bank cards still use magnetic stripe technology which is easily to be counterfeited, and the safety is not high.

Meanwhile, most countries around the world has quickly switched to chip cards, with high security and increased utilities for customers.

With the above mentioned context, the State Bank issued the plan to orient the card issuers, card payment organisations, card switching organisations and relevant units to actively plan and prepare resources as well as the necessary conditions so that the conversion achieves good results.

The plan specifies that, the State Bank Governor assigns departments of the State Bank to perform assigned duties; handle difficulties and obstacles; direct the card issuers, card payment organisations to supplement and revise conversion plan (if necessary) and continue the preparation work for the official conversion.

Banknetvn company guides, supports and conducts the certification of standard compliance for card issuers, payment institutions and card providers quickly and conveniently as prescribed.

 


Category: Finance, Vietnam

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