Cash withdrawal limit for credit cards in Vietnam starting from July 1, 2024

Cash withdrawal limit for credit cards in Vietnam starting from July 1, 2024 (Image from Internet)

Cash withdrawal limit for credit cards in Vietnam starting from July 1, 2024

Circulation 18/2024/TT-NHNN was issued on June 28, 2024, regulating the activities of bank cards. Based on clause 3 Article 3 Circulation 18/2024/TT-NHNN, a credit card is a card that allows the cardholder to conduct card transactions within the credit limit provided according to the agreement with the card-issuing organization.

The circulation also regulates the card limit, wherein the maximum cash withdrawal limit for a credit card is 100 million VND/month. Specifically, the bank card limit is stipulated in Article 13 Circulation 18/2024/TT-NHNN as follows:

- The card issuer agrees with the cardholder on the payment limit, transfer limit, cash withdrawal limit, and other limits for the use of the card in compliance with the provisions of Circulation 18/2024/TT-NHNN, current legal regulations on foreign exchange management, and relevant laws.

- For the foreign currency cash withdrawal limit abroad, one card may withdraw a maximum amount of foreign currency cash equivalent to 30 (thirty) million VND per day.

- For credit cards, the total cash withdrawal limit calculated based on the credit card issuer's code is a maximum of 100 (one hundred) million VND per month (effective from January 1, 2025).

- For prepaid cards, the issuing organization specifically regulates the balance limit, the limit on additional funds loaded onto the card, and the transaction limit; ensuring that the balance at any time on an anonymous prepaid card does not exceed 05 (five) million VND; the total transaction limit (including cash withdrawal, transfer transaction, payment for goods and services) on a named prepaid card does not exceed 100 (one hundred) million VND per month.

Regulations on card issuers in Vietnam

- According to Article 8 Circulation 18/2024/TT-NHNN, card issuers in Vietnam include:

+ Commercial banks, cooperative banks, and foreign bank branches are allowed to issue cards when the card service provision is recorded in their Licenses issued by the State Bank of Vietnam;

+ Policy banks issue cards according to the regulations of the Government of Vietnam and this Circulation;

+ General financial companies and consumer credit financial companies are allowed to issue credit cards when the activity of issuing credit cards is recorded in their Licenses issued by the State Bank of Vietnam.

- The card issuers must comply with the Basic Standards for Domestic Chip Cards when issuing cards with BIN provided by the State Bank of Vietnam.

- The card issuer must issue internal regulations on card issuance and card use, ensuring compliance with Circulation 18/2024/TT-NHNN and relevant legal regulations.

- The card issuer must use a BIN provided by the State Bank of Vietnam, except in cases specified in clause 5, Article 8 Circulation 18/2024/TT-NHNN.

- The card issuer authorized to engage in foreign exchange activities may enter into written agreements with international card organizations to issue cards with BIN provided by the international card organizations.

- The card issuer is not allowed to enter into agreements with other organizations to restrict or prevent the issuance of co-branded cards.

Tran Trong Tin

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