Do magnetic stripe ATM cards remain valid after December 31, 2021?

In this article, we would like to answer a reader’s question about whether ATM cards can still be used after December 31, 2021.

On November 30, 2021, the State Bank issued Official Dispatch No. 8458/NHNN-TT on implementing and applying basic standards for domestic chip cards. This has been reported by many media and there is a series of related information and assumptions that make many people feel confused.

Many clients have contacted PL & Partners Law Firm to ask whether domestic magnetic cards currently in circulation can continue to be used or not? Or is there any regulations that cardholders are required to change to a chip-embedded ATM card before December 31, 2021?

In this article, we would like to answer this issue by answering a reader’s question.

A. Question:

Dear lawyer, I recently heard about the fact that magnetic stripe ATM cards will not be accepted and people have to switch to chip cards before December 31, 2021.

However, I am on a business trip far away so I can not go to the bank to do so.

What should I do now? Hope to receive an advice from a lawyer.

Có được sử dụng thẻ từ ATM cho các giao dịch sau ngày 31/12/2021 hay không?

Can we still use ATM cards after December 31, 2021?

B. Answer:

PL & Partners would like to thank you for trusting and sending questions to us.

For your question, we would like to reply as follows:

Circular No. 22/2020/TT-NHNN amending and supplementing Circular No. 19/2016/TT-NHNN (amended and supplemented by Circular 41/2018/TT-NHNN) stipulates the transformation schedule from magnetic stripe ATM cards to chip-mounted ones designed for card issuers and card acquirers, specifically:

For card acquirers:

“…By December 31, 2020, 100% of active ATMs and card processing devices at points of sales endorsed by acquirers in Vietnam must comply with the Base Standards for domestic chip cards.”

For card issuers:

“…3. By December 31, 2021, 100% of active cards of card issuers with BIN issued by the State Bank must comply with the Base Standards for domestic chip cards..

4. From March 31, 2021, card issuers issuing cards with BIN issued by the State Bank must comply with the Base Standards for domestic chip cards.”

Thus, according to Circular 41, only commercial banks has been required, from March 31, 2021 onwards, to stop issuing magnetic stripe ATM card, but completely subtitle for chip cards. There are NO MENTIONS that domestic magnetic cards issued by card issuers in Vietnam will be refused for transactions.

In conclusion, information regarding magnetic stripe ATM cards will be completely “eradicated” after December 31, 2021 is incorrect. Accordingly, after December 31, 2021, you are still able to use magnetic strip cards for transactions at ATMs, POS, Internet Banking, Mobile Banking and transaction counters in accordance with the legal regulations.

Vẫn có thể sử dụng thử từ ATM cho các giao dịch như bình thường

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The above-mentioned consulting opinions are based on the provisions of the law and information provided by the client. Any legal opinions expressed (unless cited) are our own and for reference only.
At the time you read this article, the laws we refer to may have expired, or have been amended or supplemented. Therefore, we do not guarantee that the above information can be applied to all cases, to all subjects, at all times.
For accurate and specific consultancy, please contact PL&Partners lawyer via call center 093.1111.060 or email: info@pl-partners.vn.

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