Can factoring companies issue debit cards in Vietnam?

Can factoring companies issue debit cards in Vietnam?

In Article 9 of Circular 19/2016/TT-NHNN, there are regulations on card issuers as follows:

1. Commercial banks, banks for social policies, and branches of foreign banks are permitted to issue cards provided that their licenses or amended licenses issued by the State Bank indicate the card services.

2. Banks for social policies are permitted to issue cards as prescribed by the Government and the Prime Minister.

3. Financial companies are permitted to issue credit cards subject to the approval of the State Bank. Factoring companies are not permitted to issue cards.

4. Any credit institution that is permitted to conduct foreign exchange transactions may enter into an agreement on card issuance with an international card association. Its BIN will be issued by such international card association.

According to current regulations in Vietnam, factoring companies are not permitted to issue cards. Therefore, your company will not be able to issue debit cards to customers.

When issuing, what information is required on cards in Vietnam?

In Article 12 of Circular 19/2016/TT-NHNN as amended by Article 1 of Circular 28/2019/TT-NHNN, information on cards is regulated as follows:

1. Information on a card must contain:

a) Name of the card issuer (abbreviated name or trade logo). In case abbreviated names or trade logos of multiple organizations (such as the card issuer, a card issuance partner of the issuer, a switching organization, an international card association and relevant parties) appear on the card, it shall be made clear that the card is issued by the card issuer (or is property of the card issuer) to avoid confusion;

b) Name of the switching company of which the card issuer is a member (abbreviated name or trade logo of the switching company);

c) Name or brand name of the card (if any);

d) Card number;

dd) Validity period (or the validity date) of the card;

e) Full name of the cardholder being individual; or name of the cardholder being organization and full name of the person who is authorized to use the card on behalf of the organization. This provision does not apply to anonymous prepaid cards.

2. Apart from the information prescribed in Clause 1 of this Article, the card issuer may regulate other information on cards provided that it comply with Vietnamese law.

Best Regards!