What is a debit card? Who is eligible to use a debit card in Vietnam?

In Vietnam, debit cards and credit cards are two types of cards that are widely used. However, not everyone knows what a debit card is and who is eligible to use a debit card. The following article will clarify this issue.

1. What is a debit card?

According to Clause 2, Article 3 of Circular 18/2024/TT-NHNN issued by the Governor of the State Bank of Vietnam, a debit card is as follows:

A debit card (also known as a debit card) is a card that allows the cardholder to conduct card transactions within the funds and overdraft limit (if any) on the payment account of the cardholder opened at the card-issuing organization.

Debit cards and credit cards are entirely different. While debit cards allow the cardholder to conduct card transactions within the funds and overdraft limit (if any) on the account, credit cards allow the cardholder to conduct card transactions within the credit limit granted under an agreement with the card-issuing organization.

2. Who is eligible to use debit cards in Vietnam?

According to Article 15 of Circular 18/2024/TT-NHNN, the entities eligible to use debit cards in Vietnam include:

- For primary individual cardholders:

+ Persons aged 18 and above, possessing full civil act capacity as prescribed by law, are eligible to use debit cards, credit cards, and prepaid cards;

+ Persons from 15 to under 18 years old, who are not completely or partially incapacitated, are eligible to use debit cards, credit cards, and prepaid cards.

- For primary organizational cardholders: Organizations that are eligible to open payment accounts may use debit cards.

Organizations that are legal entities established and operating legally under Vietnamese law are eligible to use credit cards and identified prepaid cards. Organizational cardholders may authorize in writing individuals to use the cards of that organization or allow individuals to use supplementary cards under the provisions of this Circular and the law on authorization.

- For supplementary cardholders:

Supplementary cardholders are allowed to use the card under the specific designation of the primary cardholder but only within the following limits:

+ Persons aged 18 and above, possessing full civil act capacity as prescribed by law, are eligible to use debit cards, credit cards, and prepaid cards;

+ Persons from 15 to under 18 years old, who are not completely or partially incapacitated, are eligible to use debit cards, credit cards, and prepaid cards;

+ Persons from 6 to under 15 years old, who are not completely or partially incapacitated, with the written consent of their legal representative (the primary cardholder), are eligible to use debit cards and prepaid cards.

- If the cardholder entities stipulated in Clause 1 and Clause 3, Article 15 of Circular 18/2024/TT-NHNN are foreigners, they must have a residency period in Vietnam of 12 months (360 days) or more from the time of application for card issuance. The card's validity period must not exceed the remaining residency period in Vietnam.

3. What information shall be included on the debit card in Vietnam?

In Vietnam, the information on a physical debit card must include the following elements:

- Name of the card-issuing organization (CIO). If the card has the abbreviation or commercial logo of multiple organizations (including the CIO, the cooperating organizations in card issuance with the CIO, the card switching organization, international card organizations, and related units), the abbreviation or commercial logo of the cooperating organization must not be larger than the abbreviation or commercial logo of the CIO. The information on the card must clearly indicate in Vietnamese that the card is issued by the CIO;

- Name of the card switching organization of which the CIO is a member (abbreviation or commercial logo of the card switching organization) unless the card does not have transaction features through the card switching service of the card switching organization;

- Name or trademark of the card (if any);

- Full name for individual cardholders; the name of the organization for organizational cardholders and the full name of the individual authorized by the organization to use the card. This regulation does not apply to anonymous prepaid cards.

In addition to the aforementioned information, the CIO may stipulate additional information printed on the card in compliance with the legal regulations.

(Based on Article 11 of Circular 18/2024/TT-NHNN)

Sincerely!

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