Vietnam: What are the requirements for opening a credit card? What are the current rules for using credit cards?
What are the requirements for opening a credit card in Vietnam?
Credit cards are regulated in Clause 3, Article 3 of Circular 19/2016/TT-NHNN as follows:
Interpretation of terms
Credit card means a card that authorizes its holder to conduct card transactions within the credit limit granted under the agreement with the card issuer.
Thus, a credit card means a card that authorizes its holder to conduct card transactions within the credit limit granted under the agreement with the card issuer.
So, what are the requirements for opening a credit card in Vietnam?
To answer questions about the requirements for opening a credit card in Vietnam, Article 15 of Circular 19/2016/TT-NHNN regulates on credit card-based credit facility agreement as follows
Credit card-based credit facility agreement
1. Credit card-based credit facility agreement must satisfy the following requirements:
a) Be bound by the agreement on card issuance and usage and other agreements on credit facility between the card issuer and the cardholder (if any);
b) The card issuer must issue internal regulations on credit card-based credit facility in accordance with regulations of law on prudential measures in credit facilities, including entities, credit limit, requirements, time limits for credit extension, loan term, applicable interests, process of assessment and decision on card-based credit extension in conformity with the rules of specific responsibility of process of assessment and decision on credit extension;
c) The card issuer shall consider and decide the card-based credit extension if the following requirements are satisfied:
(i) The cardholder is an eligible entity prescribed in Point a Clause 1 and Clause 2 Article 16 of this Circular and is not an entity ineligible for credit extension prescribed in Point 126 of the Law on credit institutions and guidelines of the State Bank;
(ii) The cardholder must use the loan amount for proper purposes and its/his/her financial capacity for repaying debt on schedule;
d) The card issuer shall consider requesting the cardholder to provide types of security for its/his/her liability as prescribed.
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Accordingly, the requirements for opening a credit card in Vietnam are:
(1)The cardholder is an eligible entity prescribed in Point a Clause 1 and Clause 2 Article 16 of Circular 19/2016/TT-NHNN and is not an entity ineligible for credit extension prescribed in Article 126 of the Law on credit institutions and guidelines of the State Bank:
- Any person who is 18 years of age or older and has full legal capacity as prescribed by law is permitted to use debit cards, credit cards and/or prepaid cards.
- Any person who is 15 to less than 18 years of age and does not have lack of legal capacity or limited legal capacity is permitted to use debit cards, credit cards and prepaid cards through a parent or guardian who is eligible to open the card.
- For cardholders being organizations:
Organizations being juridical persons duly established and existing under the laws of Vietnam shall be permitted to use all types of cards.
The cardholder being a juridical person may authorize a person in writing to use its card or use the supplementary card as prescribed in Circular 19/2016/TT-NHNN.
(1) The cardholder is not an entity ineligible for credit extension prescribed in Point 126 of the Law on credit institutions.
(2) The cardholder must use the loan amount for proper purposes and its/his/her financial capacity for repaying debt on schedule.
*Note:
- Clause 1, Article 15, Circular 19/2016/TT-NHNN is supplemented by Point b, Clause 6, Article 1, Circular 26/2017/TT-NHNN.
- Point b Clause 1 Article 15 Circular 19/2016/TT-NHNN is amended by Clause 7 Article 1 Circular 17/2021/TT-NHNN.
- Item i Point c Clause 1 Article 15 Circular 19/2016/TT-NHNN is amended by Point a Clause 6 Article 1 Circular 26/2017/TT-NHNN.
What are the current rules for using credit cards in Vietnam?
The current rules for using credit cards in Vietnam are stipulated in Article 17 of Circular 19/2016/TT-NHNN as follows:
- Each cardholder must provide sufficient and accurate information as required by the card issuer upon agreeing on card issuance and usage and take responsibility for the accuracy of the information provided.
- When using a credit card or a debit card with an overact facility, the cardholder must use money properly and make full and due repayment of loan amounts and interests thereof to the card issuer as specified in the agreement concluded with the card issuer.
- Scope of card usage:
+ Credit cards shall be used to pay for goods and services; and to deposit and withdraw cash as agreed upon between the cardholder and the card issuer.
+ The cardholder may neither withdraw cash in foreign currency in foreign countries nor make international payments
*Note:
- Article 17 of Circular 19/2016/TT-NHNN is supplemented by Clause 11, Article 1 of Circular 17/2021/TT-NHNN.
- Clause 1, Article 17, Circular 19/2016/TT-NHNN is amended by Clause 9, Article 1, Circular 17/2021/TT-NHNN.
- Clause 2, Article 17, Circular 19/2016/TT-NHNN is amended by Clause 9, Article 1, Circular 17/2021/TT-NHNN.
- Clause 3, Article 17, Circular 19/2016/TT-NHNN is supplemented by Clause 8, Article 1, Circular 26/2017/TT-NHNN.
- Point b Clause 3 Article 17 Circular 19/2016/TT-NHNN is amended by Clause 6 Article 1 Circular 28/2019/TT-NHNN.
What are the cases of seizure of credit cards in Vietnam?
In Article 7 of Circular 19/2016/TT-NHNN, a credit card in Vietnam shall be seized in any of the following cases:
- It is fake;
- It is used illegally.
- It is used for investigation and actions against crime as prescribed by law.
- Other cases of card seizure as agreed upon in the agreement on card issuance and usage.
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