Vietnam to stop issuing magnetic strip cards from March


  • Vietnam
  • Thursday, 24 Dec 2020

HANOI (Vietnam News/ANN): Vietnamese banks will only be allowed to issue chip cards from March 31,2021, according to a State Bank of Vietnam (SBV) draft circular.

Currently, local banks issue both chip and magnetic strip cards.

The draft regulation aims to help meet the country’s approved roadmap of replacing all current magnetic strip cards with chip cards by Dec 31,2021.

The chip cards are compatible with EMV standards as well as the standards of international card organisations such as Visa, MasterCard, JCB and UnionPay.

International card-issuing organisations have asked Vietnamese banks to switch to chip cards that meet EMV standards to increase safety amidst a growing number of information thefts.

Security experts have also warned Vietnam delayed transition to chip technology could put the country at risk of becoming a haven for card criminals from around the world as it is among the dwindling number of countries where magnetic swipe cards are still prevalent.

As of the end of the third quarter, Vietnam had about 93.78 million bank cards in circulation, with the majority magnetic strip cards with weak security features and easily hacked.

Commercial banks are in the process of switching over to the new cards because of their stronger security features.

However, some banks say the switch faces multiple barriers. They will have to upgrade their technology and replace ATMs and POS terminals with newer ones compatible with chip cards.

According to banks, issuing a chip card can cost some US$1.50-2.50, meaning they will have to spend between $105 million and $175 million for the transition, in addition to the cost of upgrading ATMs and core banking systems to adapt to the change.

Besides ensuring greater payment security, the replacement is also among the central bank’s plans to promote non-cash payment methods. Under the Government’s strategy, by the end of 2025, at least 80 per cent of adults in Vietnam are hoped to have bank accounts and the number of non-cash transactions will expand by 20-25 per cent annually. — Vietnam News/Asia News Network

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3

Vietnam , magneticc strip , cards

   

Did you find this article insightful?

Yes
No

100% readers found this article insightful

Next In Aseanplus News

Asean News Headlines as at 7pm on Tuesday (March 2)
Myanmar's Asean neighbours press for Suu Kyi's release, restoration of democracy after special meeting
Health ministry confirms Indonesia detects 2 cases of new Covid-19 variant as country's total surge past 1.345 million
Philippines says vaccination drive "very successful" as country logs 2,067 new Covid-19 cases as total tops 580,000
Singapore: Hotels, travel agents and tour guides licence fee waivers extended to end-2021; 8 new imported cases on Tuesday (March 2)
WHO: Global Covid-19 infections up for first time in 7 weeks
Philippines fires diplomat whose maid attacks were caught on film
Singapore PM calls for Suu Kyi release, says sanctions won't hurt military - it's an 'enormous, tragic step back'
Thailand: 10 groups of people prohibited from taking Sinovac vaccine; only 42 Covid-10 cases on Tuesday (March 2)
‘Stop meddling’: Beijing accuses Taiwan of hypocrisy over Hong Kong arrests

Stories You'll Enjoy


Vouchers