Vietnam’s biggest bank plans chip card switchover

Vietcombank’s plans to switch all of its magnetic automated teller machine (ATM) cards to chip cards by the next year is expected to affect nearly one million customers holding Vietcombank ATM cards. 

But, in a Thanh Nien interview, Nguyen Tu Anh, card manager of Vietnam’ s largest commercial bank described the switchover as “inevitable”.

Below is a full transcript of Ms. Anh’s interview.

Q: Why does Vietcombank want to switch all ATM cards to chip cards while no other bank in Vietnam has come up with such a plan?

A: Switching from magnetic cards to chip cards is an inevitable trend. All card companies in the world have set a roadmap for their member banks, including Vietcombank, to switch to chip cards to curb fraud and develop new conveniences.

Q: When will Vietcombank begin the switchover?

A: We will get started by mid-2006. At first, the bank will stop issuing magnetic cards and only release chip cards.

The switchover will be carried out gradually. Currently, Vietcombank is still issuing magnetic cards.

Q: Nine other local banks are connected to Vietcombank’s ATM system, but none of these banks have similar plans. Will the switchover affect customers of these nine banks?

A: The switchover will not affect the other banks as in the years to come, Vietcombank’s ATM network will handle both magnetic and chip cards.

Q: Will customers have to pay fees for the switchover?

A: Currently we are estimating switchover costs. But we will very likely need to have the support of customers.

Q: Will the switchover lead to increased fees for customers opening new ATM accounts?

A: The fees will remain the same for new customers.

Q: What new conveniences will customers get with chip cards?

A: Apart from the current conveniences, chip cards will also be used to identify holders and store information about health care and promotional programs.

Vietcombank is also working with concerned companies to offer customers other services like paying their phone bills, road tolls and gas with their chip cards.

(Source: Thanhnien)