Banks in Vietnam strengthen customer protection
By switching to chip cards, customers can perform safer transactions and reduce the risk of banking fraud.
THE HANOI TIMES ─ Commercial banks in Vietnam have discontinued accepting magnetic stripe ATM cards to improve customer security and encourage the adoption of chip-based cards.
This move, starting on July 1, aligns with the State Bank of Vietnam (SBV)'s regulations that all magnetic stripe cards, standalone or hybrid, are no longer valid for transactions across the banking system.
VPBank chip-based card. Photo: VPBank
Customers must replace cards without a gold chip and only a black stripe, including hybrid cards, as chip cards encrypt information and generate unique codes for each transaction, unlike magnetic stripe cards that store easily stolen text data.
To support the transition, banks are offering free card replacements through three channels: visiting a branch with a citizen ID, registering online via mobile app for home delivery or in-branch pickup, or calling a customer service hotline.
According to the State Bank of Vietnam, approximately one million magnetic cards were in frequent use at the end of May.
The transition from magnetic cards to chip-based cards will not cause any inconvenience, as customers can still use mobile apps to make payments and withdraw cash.
