Banks officially stop issuing magnetic ATM cards
The Saigon Times
|A person uses a magnetic stripe card to withdraw cash from an automated teller machine. Vietnam aims to replace all magnetic strip cards with chip cards by the end of this year – PHOTO: CAND.COM.VN|
HCMC – Commercial banks in Vietnam will officially stop issuing magnetic ATM cards from today, March 31, so that all the new ATM cards will be chip-based ones in accordance with Circular 22.
Earlier, the State Bank of Vietnam (SBV) proposed that all active ATM cards must be chip ones by December 31, 2021. The switch to chip cards is a trend worldwide to strengthen the security of customers’ information as well as prevent the loss of data and fraud.
SBV said the circular requests commercial banks stop issuing magnetic stripe cards from March 31, nine months earlier than the deadlines, to prevent them from continuing to issue magnetic stripe cards for customers, affecting the roadmap to replace magnetic stripe cards with chip ones by the end of this year.
The banks have also been asked to arrange resources to support customers to convert magnetic stripe cards to chip cards to prevent an interruption to their use of ATM cards.
Data of the National Payment Corporation of Vietnam showed that as of the end of 2020, 38 commercial banks in Vietnam had converted magnetic stripe cards to chip cards. Many automated teller machines have been upgraded to accept payments via chip cards.