Since September, a series of commercial banks have announced that they will stop magnetic stripe card transactions and only provide banking services for chip cards to limit card transaction risks and increase safety and security.

According to Circular 20/2020 of the State Bank of Vietnam (SBV) regulating bank card operations, by December 31, 2021, 100% of ATM cards and card acceptance devices at points of sale operating in Vietnam of card payment organizations must comply with the basic standards for domestic chip cards.

The Circular also sets a deadline of March 31, 2021 for card issuers to issue cards with BIN (card issuer code) issued by the State Bank of Vietnam to comply with domestic chip card standards.

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Many banks have completely switched to chip technology cards. Photo: Nam Khanh.

With the issuance of Circular 20 by the State Bank, banks have stopped issuing magnetic stripe cards since 2021, and have issued contactless chip debit cards for free. To give customers time to switch, banks still allow transactions using magnetic stripe cards.

However, recently, many banks have decided to "kill" magnetic cards to improve customer security as well as comply with the State Bank's regulations on card use.

VPBank is the latest bank to announce that it will stop using magnetic stripe cards starting October 10. VPBank customers who have not yet switched to chip cards will have one month to register to receive their cards. While waiting for a new card to be issued, customers can still deposit/withdraw cash, but not with magnetic stripe cards, but with QR codes at ATMs.

Meanwhile, Sacombank has just announced that it will stop using magnetic stripe cards from October 31. Thus, there is less than a month left for customers using magnetic stripe cards of this bank to make the switch to chip cards.

Previously, BVBank also stopped providing services for magnetic stripe cards and completely replaced them with chip cards since September 20.

Meanwhile, Asia Commercial Bank ( ACB ) officially stopped magnetic card transactions from September 4.

Also in September, Eximbank announced that it would stop magnetic card transactions from September 10.

Banks confirm that they do not require customers to provide any information or card images/identity documents via text message (SMS)/Zalo/Email to cancel cards, replace cards or other card services. Therefore, card users absolutely do not provide any personal information to others, to avoid cases where scammers take advantage.

There are two ways to convert a magnetic card to a chip card. The first way is that customers only need to bring their ID card or citizen ID card to the nearest branch/transaction office to cancel the magnetic card and issue a new chip card for free.

Second, customers can access digital banking applications, mobile banking to make and receive cards at home or at the bank's transaction point.