Hanoi-Vietnam: Only card issuer is allowed to collect fees paid by cardholders

Circular 19 has stipulated card fees and charges in Vietnam as follows:

- Only card issuers are permitted to collect fees and charges from cardholders. Each card issuer must collect fees and charges according to its own schedule of card service fees and charges and must not collect any additional type of fees/charges not mentioned in the announced schedule of card service fees and charges.

- The schedule of card service charges must specify types of fees and charges applicable to every card and card services. The schedule of card service fees and charges of card issuers must comply with regulations of law, be posted publicly and provided for cardholders before its application and upon any change to this schedule.

- Types of notification and supply of information of those charges to cardholders must be specified in the agreement on card issuance and usage.

- A period of at least 7 days is required for the application of any change of the service charges from the date on which it is informed and such period must be specified in the agreement on card issuance and usage.

- The acquirer and the merchant may enter into an agreement on discount charges. The interchange fees between card issuers, acquirers, switching companies, clearing houses, and international card associations shall be agreed upon by the involved parties as prescribed by law.

Additionally, Circular 19 also stipulates the actions against risks and losses in trading cardsas follows:

- Card issuers must setting up credit risk reserves to offset risks arising from card trading as prescribed in regulations of the State Bank on establishment and use of credit risk reserves.

- With regard to other types of risks in card trading, card issuers and acquirers shall offset losses arising from card trading as prescribed in regulations on financial regime applicable to credit institutions and branches of foreign banks.

Details may be found in Circular 19/2016/TT-NHNN effective from August 15, 2016.

- Thao Uyen -

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