Customers should proactively close cards and accounts when not in use to avoid incurring costs.

Regarding the issue of issuing, managing and using credit cards in accordance with current laws, the State Bank of Vietnam (SBV) and the SBV provincial branch have directed local banks to review and implement measures to ensure security and safety in credit card operations. Quang Tri Newspaper reporter interviewed Mr. NGUYEN DUC DONG, Director of the SBV Quang Tri provincial branch on related content.

-Sir! Could you please tell us about the situation of people using credit cards at banks in the province?

-In recent years, the technical infrastructure and technology serving credit card payments continue to be invested in, applying international standards, promoting the application of new technology, adding many utilities to improve service quality, processing capacity, ensuring security and safety to better serve the needs of the people. Therefore, card services in Quang Tri province are increasingly developing.

Banks have actively informed, introduced, and provided credit card products; promoted awareness among customers about information security in credit card transactions; and guided organizations and individuals to implement measures to ensure security and safety in the exploitation and use of credit cards.

Currently, the province has more than 56,015 credit cards (bank cards that allow cardholders to make card transactions within the credit limit granted under the agreement with the bank) issued, of which the number of valid credit cards is 31,130.

To develop card operations, banks always focus on improving service quality and creating convenience for customers through developing the quantity, quality and scale of the network of automatic transaction machines (ATMs) and card acceptance devices at points of sale (swiping cards through POS machines).

To date, there are 115 ATMs in the area, including 11 CDMs, which are ATMs that allow deposits, withdrawals, transfers, and payments for goods and services. The ATM/CDM system is smooth, stable, and safe; there are 766 POS machines, with POS payment turnover reaching 171.95 billion VND.

- Up to now, has there been any case in the province where customers opened credit cards and encountered unexpected problems, sir?

-In Quang Tri province, most cases of difficulties and problems in the process of using card services are clearly guided and promptly answered by bank staff.

Recently, there have been some cases of minor problems in the process of opening, using and managing cards. Customers apply for a credit card and are informed that the annual fee is waived for the first year. However, some customers do not know how the following years will be calculated, and do not know how much interest and fees will be charged if there is overdue debt?

In this case, the annual fee depends on the regulations and fee collection policies of each bank, each period, each card type and each transaction limit. The fee will range from a few hundred thousand VND to a few million VND, calculated into the monthly balance of the cardholder.

If the cardholder forgets or ignores it, the bank will still charge interest and put them on the bad debt list. The card account management fee is collected even though the account balance has reached 0 VND and there have been no transactions for many years. The bank still records this fee as a debt. If the customer wants to close the account, they must pay all the fees that the customer owes.

Customers should proactively close cards and accounts when not in use to avoid incurring costs.

Customers need to carefully read the regulations before using credit cards - Photo: TU LINH

Most banks reportedly charge account management fees, and each bank's fee policy may vary.

In addition, some banks also collect fees such as: fines for overdue credit cards, card cancellation, receiving text messages notifying balance changes (tens of thousands to hundreds of thousands of VND/month, depending on the number of messages), ATM withdrawal fees from 1,000 - 3,000 VND/transaction.

The collection of many types of fees as above by domestic banks also depends on the fee collection policies of international card organizations such as Visa, Mastercard, JCB... On average, each year, Visa and Mastercard collect from each bank in Vietnam about 270 types of fees/international card organizations. In order to encourage people to use and experience a variety of payment services, the State Bank has also encouraged banks to reduce management costs, exempt or reduce fees to ensure the harmony of interests for all parties.

-What recommendations do you have for customers to encourage consumers to use this civilized and convenient form of credit card payment?

-Currently, the system of documents regulating card operations is very strict, ensuring convenience, safety and security. Banks have also invested and applied new technology according to international standards, ensuring security and safety with many utilities. However, in reality, many card users do not pay attention or do not fully understand the features of the card, the number of interest-free days, debt repayment principles and methods of calculating credit card interest, so they do not pay enough or on time and have to pay credit card penalties due to overdue debt.

Credit cards are a necessary tool in modern life and are very effective in helping customers spend flexibly and manage their finances effectively. To ensure that using the card is always convenient, safe and effective, customers need to pay attention to and note the following when opening a credit card:

Read carefully and make sure you understand the contents of the card issuance and usage contract between the card issuer and the cardholder, including: rights and obligations of the parties; regulations on fees, types of fees (annual fees, card cancellation, overdue credit card penalty fees...), fees applicable to each type of card, method of calculating interest for credit cards; agreement on granting credit to the cardholder... In particular, you should carefully study the notes when using the credit card of the issuing bank.

Keep important documents related to the card; keep the credit card safe and secure. The cardholder and the individual authorized by the cardholder must keep the card, PIN, cardholder identification numbers, card information, transaction information confidential, not disclose card information; notify and coordinate with the bank to handle cases of card loss or requests for investigation or complaints.

You should proactively cancel your card and close your account if you are not using it. Customers should proactively close both the card and account when not in use to avoid incurring costs. Paying your debt on time helps limit interest and penalty costs.

-After the incident where a customer borrowed 8.5 million VND from Eximbank but after 11 years was charged interest of up to 8.8 billion VND, what instructions did the State Bank give to banks to comply with relevant regulations and laws on fees, interest rates, and interest calculation methods for each type of card?

- It can be said that the incident of a customer borrowing a credit card of VND 8.5 million from Eximbank but after 11 years being charged interest of up to VND 8.8 billion is a rare case. However, after that incident, on March 26, 2024, the State Bank issued Directive No. 2235/NHNN; The Quang Tri Provincial State Bank Branch also issued Document No. 201/QTR-TH directing local banks to review and implement measures to ensure security and safety in credit card operations.

Accordingly, the State Bank requires credit institutions to review internal procedures for issuing and using credit cards to ensure compliance with current legal regulations; direct and instruct officers and employees in the entire system to properly implement procedures for issuing and using credit cards in accordance with legal regulations when issuing cards to customers. Banks must ensure that fees, interest rates, and interest calculation methods for each type of card issued comply with the State Bank's regulations and relevant laws.

Be transparent, provide full information and take measures to ensure that customers have grasped information about their rights and obligations, fees, interest rates, interest calculation methods (especially with credit cards) as well as changes (if any) during the process of customers using the card.

In case of complaints or feedback from customers during the card usage process, the card issuing organization will promptly handle it according to the correct procedures, ensuring promptness, timeliness and finality, not allowing the case to drag on and affect the legitimate rights of customers as well as the image and reputation of the card issuing organization.

Along with that, the State Bank of Vietnam Branch in Quang Tri province also requested local banks to report on credit card content: number of issued cards; number of valid cards; regulations on annual fees, credit card cancellation fees; method of calculating interest on credit cards.

The above requirements aim to serve the management of card activities of banks in the area more clearly and transparently, ensuring the rights and interests of customers.

Thank you!

Tu Linh (performed)

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