What did the Vietcombank leadership say?

Prior to the adjustment of some service fees effective July 1, 2023, Ms. Doan Hong Nhung, Deputy Director of Retail Banking at Vietcombank, shared detailed information regarding this change.

Adjusting some service fees: What do Vietcombank leaders say? - 1 — Ms. Doan Hong Nhung – Deputy Director of Retail Banking Division, Vietcombank.

- We understand that Vietcombank adjusted some service fees from July 1st, 2023. Could you please provide details and the objectives of this fee adjustment?

Vietcombank is adjusting some card-related service fees from July 1, 2023, including several groups, with the aim of encouraging customers to switch from magnetic stripe cards to chip cards, and also encouraging customers to transact through digital channels.

Accordingly, Vietcombank applies a monthly maintenance fee of VND 10,000/card/month for debit cards using technology. This fee only applies to customers who have not yet converted their magnetic stripe cards to chip cards, and customers will be refunded this fee when they convert to chip cards and/or block their magnetic stripe cards within 3 months from the date the fee is collected.

Vietcombank wishes to encourage customers to switch to chip cards as soon as possible to enhance security and comply with the card technology regulations of the State Bank of Vietnam and international card organizations.

To facilitate the card conversion process for customers, Vietcombank currently offers a variety of conversion channels, including over-the-counter and digital channels. Customers can easily convert their cards online via VCB Digibank and choose to receive their new cards at their address in Vietnam completely free of charge.

Furthermore, from July 1st, 2023, Vietcombank will apply activation fees at the counter, direct card delivery fees, and physical card termination fees to encourage customers to switch to digital channels, while reducing costs for customers and society, saving time, and contributing to environmental protection.

Customers can register for free issuance and use Vietcombank's virtual card product to experience the benefits of the card on digital channels, with the outstanding advantage of not having to wait for card issuance and being able to use the card immediately after registration in an easy, convenient and fast way.

Customers can also easily and proactively activate their cards for free through digital channels such as VCB Digibank and SMS Banking, which is convenient, fast, and ensures customer security when using the card. This is also a general trend among banks in the market to encourage customers to use card products through digital channels, creating convenience and security for customers.

In order to improve customer service quality and provide maximum support to customers during card usage, as part of these fee changes, from July 1, 2023, Vietcombank will waive the transaction inquiry fee for domestic cards issued by Vietcombank, replacing the current fee of VND 50,000 per transaction (including VAT).

Regarding the fee for not paying the minimum payment amount, Vietcombank does not adjust the applicable fee rate but only adjusts the minimum fee amount to align with the general market level.

- The transition from magnetic stripe cards to chip cards is considered a goal of the bank, so could you explain the differences between chip cards and why customers should switch from magnetic stripe to chip cards?

To enhance security and optimize the convenience of its card products, Vietcombank is always striving and ready to support customers in converting their Vietcombank Debit and Credit cards from magnetic stripe technology to contactless chip technology free of charge.

Magnetic stripe cards are cards containing a magnetic strip that stores encoded customer information. The data on a magnetic stripe is permanently stored on the strip (on the back of the card) and is only encoded once, making it vulnerable to card information theft and transaction fraud.

Chip cards are also known as "smart cards." These cards have a microchip embedded on their surface, and this is the fundamental difference between chip cards and magnetic stripe cards. With chip cards, transaction data is permanently stored on the chip (on the front of the card), and the transaction code changes with each transaction. Currently, Vietcombank applies contactless chip technology to all of its card products.

Chip card technology is widely used around the world and has proven effective in reducing fraud in card transactions.

Furthermore, chip card technology, integrated with convenient payment features, plays a crucial role in promoting cashless payments. Specifically, with contactless chip card technology, customers will experience fast, convenient, and secure payment methods, suitable for small transactions that previously required cash, such as at supermarkets, convenience stores, fast food restaurants, and cafes.

For contactless transactions, cardholders simply tap their card on a payment terminal displaying the logo to complete the transaction. Especially for small-value bills, customers do not need to sign the receipt.

In the future, contactless chip cards will be deployed for contactless payments in various fields such as smart transportation and parking, supporting a change in people's payment habits and aiming towards a cashless society.

- Could you share more about Vietcombank's product strategies this year to meet customer needs?

In line with these objectives, on June 21st, Vietcombank launched the VCB DigiCard, a virtual card product that completely waives issuance and annual fees, along with many other benefits. This card product is built on a digital platform.

Customers can apply for a card directly on the VCB Digibank mobile app, website, or via online EKYC verification. Soon, we will also launch a range of contactless chip technology cards, improved from our current card products and enhanced with diverse features and benefits to meet customer needs.

At the same time, we have been and continue to develop digital payment channels to establish a network and digital ecosystem for the issuance and use of customer cards, aiming to provide convenience and optimize the customer experience.

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