ACB announced that it will stop transactions on all magnetic cards (international and domestic) from September 4. Converting all magnetic cards to chips will have higher security to minimize the risk of losing money.
Asia Commercial Joint Stock Bank (ACB, stock code: ACB) recently announced that it will stop transactions on all magnetic cards (international and domestic cards) from September 4.
The above notice is ACB comply with the State Bank's regulations on converting magnetic technology cards to contactless chip technology cards to prevent fraud on magnetic cards and ensure safety in transactions.
Accordingly, customers who want to convert their magnetic card to an ACB chip card need to bring their ID card/citizen ID card to the nearest ACB branch/transaction office to complete the procedure to cancel the magnetic card and issue a new chip card for free.
ACB announced to stop transactions on all magnetic cards from September 4 (Photo: Viet Duc).
ACB notes that it will not ask customers to provide information or images of cards or identification documents via text message (SMS), Zalo, or Email to cancel cards or perform other card transactions. Therefore, people should not provide any personal information via these means.
Currently, domestic bank cards exist in two parallel types: magnetic cards and chip cards.
In addition to complying with regulations from the State Bank, converting all ATM cards using magnetic technology to chip technology has a higher level of security to minimize the risk of losing money and copying card information.
Because in addition to the usual transaction features, chip-embedded ATM cards of banks are now equipped with contactless payment features, identified by a signal bar symbol on the front of the card.
The chip-based ATM card has the same dimensions as the old card, measuring 85,6 mm long x 53,98 mm wide. However, the chip-based ATM card is more secure than the magnetic stripe ATM card because the old ATM card receives information through the magnetic stripe on the back and is not encrypted.
Magnetic cards store all of the customer's personal information behind the black stripe of the card in text form. This information can easily be encrypted and stolen when the customer inserts the card into an ATM or swipes the card on a POS machine. The information stored in the magnetic stripe will be read by the readers in the machine.
Therefore, with just a common magnetic card swiping device, criminals can easily steal card information, then easily create fake cards with copied information, and at the same time attach devices to secretly record customers' PIN entry movements, and that is enough for criminals to steal money from customers' accounts.
Chip cards have a chip on the front of the card that encrypts information to increase data security. Personal information is encoded in a computer binary sequence and is constantly changing.
The banking industry expects the application of chip cards to help limit risks related to copying card information, leading to cardholders losing money unjustly.
Since 2019, the State Bank has issued a set of basic standards (TCCS) on domestic chip cards, and at the same time issued a roadmap for converting from magnetic cards to chip cards to enhance the safety of card payment activities.
By 2021, banks have simultaneously stopped issuing new magnetic cards, only issuing chip cards, and simultaneously implemented the conversion of magnetic technology cards to chip technology.
To promote this conversion process, banks have also encouraged customers to open new/convert magnetic stripe cards to chip cards in many ways such as free issuance, free conversion, and free transaction fees.
| How to switch to chip card?
According to the introduction from banks, there are 2 popular ways to convert magnetic cards to chip cards. The first way, customers only need to bring their ID card or passport, or valid citizen identification card to the bank's transaction point and request to convert from magnetic cards to chip cards. The second way is to access the digital banking application, mobile banking to make and receive the card at home or at the bank's transaction point. In addition, at some digital banks, users can change their magnetic cards to chip cards at multi-function ATMs. |
Source: https://dantri.com.vn/kinh-doanh/mot-ngan-hang-bat-ngo-khai-tu-toan-bo-giao-dich-the-tu-20240909074056824.htm
