What are the responsibilities of card issuers in ensuring security, safety and confidentiality measures in card use in Vietnam from October 1, 2024?
What are the responsibilities of card issuers in ensuring security, safety and confidentiality measures in card use in Vietnam from October 1, 2024?
Based on Clause 1, Article 17 of Circular 18/2024/TT-NHNN stipulating the assurance of security, safety and confidentiality measures in card use in Vietnam:
(1) Take responsibility for risk management when issuing various types of cards;
(2) Disseminate and guide customers on card services, correct card usage procedures, potential risks in using cards and how to handle incidents, prohibited acts in using cards, and the cardholder's responsibilities in case of violations;
(3) Implement measures to ensure safety, prevent risks for card transactions according to risk management principles in electronic banking operations; ensure the confidentiality of information related to card activities;
Ensure the infrastructure and technical systems for managing card issuance and payment operations run smoothly and safely;
(4) Establish and maintain a hotline operating 24/7 to promptly receive and handle cardholder feedback;
(5) Coordinate with card payment organizations, card switching organizations, and card clearing organizations to take necessary measures to ensure safety in card activities; manage risks related to other parties in accordance with risk management principles in electronic banking operations;
(6) Take measures to verify, cross-check, and confirm customer identity information during the issuance and use of cards, including:
- Measures to verify the legality and validity and cross-check to ensure accuracy and correctness of customer documents, information, and data collected during card issuance and use;
- Measures to prevent impersonation, interference, modification, or falsification of customer identity verification during card issuance and use;
- Technical measures and technology solutions to accurately match customer biometric information according to Point b, Clause 1, Article 10, and Clause 6, Article 16 of Circular 18/2024/TT-NHNN;
- Measures to ensure card usage by the legitimate cardholder;
- Other measures stipulated by the card-issuing organization to prevent and combat fraud, impersonation, legal violations, or misuse of cards for illegal purposes;
(7) Implement measures to monitor and control card usage within the agreed scope and limits between the card-issuing organization and the cardholder according to Circular 18/2024/TT-NHNN;
(8) Develop a set of criteria for identifying cards with suspected fraudulent or illegal activities (hereinafter referred to as the Criteria) based on references to the reasons for suspicion specified in Appendix 02 issued with Circular 18/2024/TT-NHNN.
card issuer must regularly review, amend, supplement, and update the Criteria based on information, documents, and data during card issuance and use;
(9) Identify potential risks in card issuance and use activities and corresponding risk handling measures. Risk handling measures include:
- Regulations on transaction scope and limits based on risk levels categorized by customer groups, including specific risk management measures for customers under 18 years old;
- Cases for updating and re-verifying customer identification information as specified in this clause;
- Cases of refusal or temporary suspension of card transactions using electronic means;
(10) Set regulations for verifying and cross-checking cardholder identification information with the National Bank's fraud management and prevention information system and the list of customers suspected of fraud provided by the Ministry of Public Security and other relevant authorities (if any) to apply appropriate risk management measures;
(11) Provide information about suspected fraudulent or counterfeit cards to law enforcement agencies for card crime investigations; inspect, review, or cooperate with authorities to update the list of cards that should be declined or suspected of being counterfeit to card payment organizations and card-accepting entities;
Cooperate with authorities and related parties in preventing card-related crime and investigating, handling detected card crime cases as defined by law;
(12) Regularly warn and guide customers on the methods and tricks of criminals in card issuance and use; guide on data security and safe card usage;
(13) Verify customer identity information and promptly apply measures under anti-money laundering laws in the following cases:
- Customers exhibit suspicious signs as defined by Anti-Money Laundering Law 2022;
- The card-issuing organization suspects the legality or validity of customer documents, information, and data collected during the card issuance and use agreement and in card usage;
- Cardholder information is on the fraud and scam suspect list of the National Bank's fraud management and prevention information system or the list of customers suspected of fraud provided by the Ministry of Public Security and other relevant authorities (if any);
- Card or cardholder information is inaccurate or inconsistent with the data of relevant authorities;
(14) Regulate documents related to foreign card transactions and inspect, store documents, and evidence as per foreign exchange management and electronic transaction laws;
(15) Monitor and bear responsibility for ensuring foreign card transactions are in line with the intent, usage limits stipulated in this Circular, and compliance with foreign exchange management laws;
(16) Track the validity of identification documents, proof of stay in Vietnam for customers as per Clause 2, Article 9 of Circular 18/2024/TT-NHNN;
Notify customers at least 30 days before the expiration date of identification documents, proof of stay in Vietnam to promptly request updates and supplementation;
Suspend card transactions in cases where customers' identification documents or proof of stay in Vietnam are expired.
Note: Clause 1, Article 17 of Circular 18/2024/TT-NHNN (except for item 17 stated above effective from July 1, 2024) will be effective from October 1, 2024.
What are the responsibilities of card issuers in ensuring security, safety and confidentiality measures in card use in Vietnam from October 1, 2024? (Internet image)
What are the cases of revocation of cards in Vietnam?
Based on Article 7 of Circular 18/2024/TT-NHNN stipulating revocation of cards:
Revocation of cards
A card is revoked in the following cases:
1. Counterfeit card.
2. Unauthorized card usage.
3. For investigation and handling of crimes as per legal regulations.
4. Other cases agreed upon in the card issuance and usage contract.
Thus, a card is revoked in 04 cases: counterfeit card; unauthorized card usage; for investigation and handling of crimes; other cases agreed upon in the card issuance and usage contract.
What are the card limits in Vietnam?
Based on Article 13 of Circular 18/2024/TT-NHNN specifying card limits as follows:
- card issuer agree with the cardholder on payment limits, transfer limits, cash withdrawal limits, and other limits in card usage for the cardholder in accordance with this Circular, prevailing laws on foreign exchange management, and related legal regulations.
- For foreign currency cash withdrawal limits abroad, a card can withdraw a maximum equivalent amount of 30 (thirty) million VND in one day.
- For credit cards, the maximum total cash withdrawal limit per BIN of the credit card is 100 (one hundred) million VND in one month (effective from January 1, 2025).
- For prepaid cards, the card-issuing organization specifies the balance limit, additional top-up limit, and transaction limit;
Ensuring at any time, the balance on an anonymous prepaid card does not exceed 05 (five) million VND;
The total transaction limit (including cash withdrawal transactions, transfer transactions, payment transactions for goods and services) on an identified prepaid card does not exceed 100 (one hundred) million VND in one month.
Note: Clause 3, Article 13 of Circular 18/2024/TT-NHNN takes effect in Vietnam from January 1, 2025.
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