Vietnam chip card conversion: what card holders should do

Vietnam chip card conversion is a plan from the State Bank of Vietnam to replace magnetic stripe ATM cards with chip cards. Banks are asking card holders to swap because the stripe is easy to copy and the chip is much harder to copy.

Why banks are changing your card

The rule is Circular 41/2018, which took effect on February 18, 2019. It amended and added to an earlier rule, Circular 19/2016. In September 2018, Vietnam had more than 85 million magnetic stripe ATM cards in use, and officials described them as weak on security.

Chip cards follow a domestic standard set by the central bank in October 2018. The standard is built to work with the international EMV system, so it fits the global card networks.

Sources: Viet Nam News, January 8, 2019; Vietnamnet, May 19, 2019.

The deadlines

Banks have three steps to meet. By the end of 2019, at least 30 percent of cards must be on chip. That is more than 25 million cards, by one count. The next target is 60 percent a year from now, about 51 million cards. Every active card with a bank number (BIN) issued by the State Bank of Vietnam must meet the domestic chip card standard by the end of the year after that.

Shops and machines have their own deadlines. By the end of this month, at least 35 percent of ATMs and 50 percent of card payment terminals nationwide must read chip cards. Both must reach 100 percent by the end of next year.

Numbers differ a little between news reports. Some count 21 million cards for the first target, others count more than 25 million. The 30 percent share is the same in both.

Sources: Viet Nam News, January 8, 2019; VietnamPlus, January 13, 2019; Vietnamnet, May 19, 2019; Vietnam News Agency via VietnamPlus, May 21, 2019.

How the rollout has gone

The national payment network, NAPAS, said in May 2019 that its shared domestic chip card standard was ready for banks. It said some banks were expected to start issuing chip cards on May 28. Vietnam News Agency named seven banks in the first wave: Vietcombank, BIDV, VietinBank, Agribank, TPBank, Sacombank and ABBank. It said these banks hold about 70 percent of the cards on the market.

The change is gradual. Banks planned to start with cards that are about to expire and with new customers. They did not plan to switch every card at once, so most people have not been forced to act on a single day.

Sources: Vietnam News Agency via VietnamPlus, May 21, 2019; Vietnamnet, May 19, 2019.

What card holders should do

First, check your card. A black stripe on the back and no small metal square on the front means a magnetic card. A metal square means it already has a chip.

Second, ask your bank. Call the number on the back of the card or visit a branch. Ask when your bank will swap your card, what to bring, and whether the swap is free. Bring your ID and your old card.

Third, keep using your card until the new one arrives. NAPAS said banks would change cards in a way that does not affect customer transactions.

Fourth, keep your PIN private. A chip makes copying harder. It does not protect you if someone sees your PIN. Never share the PIN or the one-time codes sent to your phone, and never hand your card to a stranger.

Sources: Vietnam News Agency via VietnamPlus, May 21, 2019; Viet Nam News, January 8, 2019.

Will it cost money?

Reports are not fully consistent. Vietnamnet wrote on May 19 that banks would not charge customers to convert cards, as the central bank requires. Vietnam News Agency wrote two days later that no official rule on fees existed and that each bank would set its own policy, with special terms expected.

The practical advice is simple. Ask your bank for the fee in writing or check its notice before you pay anything. NAPAS said the chip itself is only about 2 to 3 percent of the cost of issuing a card, so a swap should cost less than a brand new card.

Banks carry the larger cost. Banks told Viet Nam News that a chip card costs about US$1.50 to US$2.50, which adds up to US$105 million to US$175 million for the whole country, before upgrades to machines and bank systems.

Sources: Vietnamnet, May 19, 2019; Vietnam News Agency via VietnamPlus, May 21, 2019; Viet Nam News, January 8, 2019.

What to watch next

Over the coming year, expect more bank notices, text messages and branch signs about card swaps. Treat any message that asks for your PIN, your card number or a code as a scam, even if it mentions the chip change. Real banks do not ask for these by message.

If a bank staff member asks you to switch cards, confirm it through the bank's official hotline or a branch before you act.

Sources: Vietnamnet, May 19, 2019; Viet Nam News, January 8, 2019.

Sources

• Viet Nam News, "Central bank issues roadmap for ATM card upgrades," January 8, 2019 (vietnamnews.vn)
• VietnamPlus, "Central bank issues roadmap for ATM card upgrades," January 13, 2019 (en.vietnamplus.vn)
• Vietnamnet, "Magnetic ATM cards replaced with chips beginning May 28," May 19, 2019 (vietnamnet.vn)
• VietnamPlus, "70 million magnetic stripe cards ready to be converted to chip cards," May 21, 2019 (en.vietnamplus.vn)