Credit Card Fees in Vietnam: What to Read on Your Bill

Credit card fees in Vietnam are easy to find if you know where to look, and most of them sit in two places: the fee schedule and the card terms. Read both before you sign. Read them again when a bill arrives. This note shows what to look for, in plain steps.

Start with the fee schedule

Every bank that issues cards keeps a list of its fees. Most banks post it on their own website and in their branches. Ask for the card section. If you cannot find it, ask the branch for a printed copy.

The list is usually a table. Each line names a fee and gives an amount or a percent. Some fees are a fixed number of dong. Others are a percent of what you spend or withdraw. Note which one each line uses, because a percent grows with the amount.

Keep the page with your card papers. If a charge later looks wrong, you can compare it with the list you were given.

Sources: the fee schedules and card terms published by each issuing bank on its own website and in its branches.

The fees to find first

Look for these lines before anything else. They cause most of the surprises on a bill.

Annual fee: a yearly charge for holding the card. Check if it is charged when you open the card or after the first year. Check if a card for a family member costs extra.

Late payment fee: a charge when you miss the due date or pay less than the minimum. Check if it is a flat amount or a percent of the unpaid sum.

Cash advance fee: a charge when you take cash from an ATM or a counter with your credit card. Check if interest starts on the same day, with no free period. Many cards treat cash differently from shopping.

Foreign currency fee: a charge when you pay in another currency, online or abroad. Check which exchange rate the bank uses and on which day.

Other lines to scan: card replacement, statement copies, over-limit charges and early closing.

Sources: the fee schedules and card terms published by each issuing bank on its own website and in its branches.

How interest is stated

Interest is the largest cost if you do not pay in full. Banks often state it as a rate for a month or for a year. Read the unit. A monthly rate looks small, but over twelve months it adds up to a much bigger figure.

Find out when interest begins. Many cards give an interest free period on shopping if you pay the full statement balance by the due date. If you pay only part, interest may be charged on the whole amount from the purchase day, not only on what is left. Ask the bank to explain this with an example in writing.

Also check how the minimum payment is set. A low minimum keeps the card in good standing, but the unpaid part keeps earning interest.

Sources: the card terms and conditions published by each issuing bank.

Read the bill itself

The monthly statement shows what really happened. Go through it in a fixed order. First, check the statement date and the payment due date. Second, check the total due and the minimum due. Third, read each charge line by line.

Mark anything you do not know. A fee line, an unknown shop name or a charge in a foreign currency should be checked right away. Keep your receipts so you can match them.

If a charge is wrong, contact the bank using the number printed on your card or statement. Do it soon, and ask for the reply in writing. Note when you called, who you spoke to and what they told you.

Sources: the card terms and conditions published by each issuing bank.

What the rules say about clear terms

The State Bank of Vietnam is the central bank, and it sets rules for banks that issue cards. A rule on card issuing and use, Decision 20/2007/QD-NHNN, has been in place since 2007. Banks must follow it when they run card business.

A 2010 consumer law, the Law on Protection of Consumers' Rights, also matters. It gives buyers a right to clear and honest information about goods and services. It covers banks that offer cards to the public. That is why a fee or a condition should be explained in words you can follow, and why you can ask for an answer.

This is general information, not legal advice. If a card fee is in dispute, begin with the bank's own complaint steps.

Sources: State Bank of Vietnam, Decision 20/2007/QD-NHNN; National Assembly, Law on Protection of Consumers' Rights, 2010.

A simple checklist before you apply

Write down the annual fee, the late fee, the cash advance fee and the foreign currency fee for each card you are comparing. Add the interest rate and its unit. Note the length of the interest free period.

Ask one question at the branch: what would I pay if I spent a set amount, paid late once and took cash once? If the staff reply plainly, that is a good sign. If they dodge, wait.

Pick the card whose total cost for your own habits is lowest, not the one with the biggest gift on the leaflet. If you always pay in full on time, interest matters less and the annual fee matters more.

Sources: the fee schedules and card terms published by each issuing bank.

Sources

• State Bank of Vietnam, Decision 20/2007/QD-NHNN on bank card issuing and use, 2007 (sbv.gov.vn).
• National Assembly of Vietnam, Law on Protection of Consumers' Rights, No. 59/2010/QH12.
• Fee schedules and card terms published by each issuing bank.