Question: Dear lawyer, I recently hear about the fact that magnetic stripe ATM cards will not be accepted but have to switch to chip cards before December 31, 2021. However, I am on a business trip far away so as not to go to the bank to do so. So what can I do? Thank you.
PL&Partners would like to thank you for your trusting and sending question to us. For your question, we would like to reply as follows:
On November 30, 2021, the State Bank has issued Official Dispatch No. 8458/NHNN-TT on the application of basic standards on domestic chip cards. This results in a series of related information such as: whether domestic magnetic stripe cards in circulation keep being used or not; and are cardholders required to change to chip-mounted ATM cards before December 31, 2021 or not?
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 card 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 card 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.