What is a bank card? Eligible entities for using bank cards in Vietnam

What is a bank card? Eligible entities for using bank cards in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. What is bank card?

According to Clause 1, Article 3 of Circular 19/2016/TT-NHNN, bank card means an instrument issued by a card issuer for conducting card transactions under the conditions and terms agreed upon by the involved parties.

2. Eligible entities for using bank cards in Vietnam

Subjects are allowed to use bank cards according to Article 16 of Circular 19/2016/TT-NHNN (amended in Circular 26/2017/TT-NHNN, Circular 17/2021/TT-NHNN and Circular 28/2019/TT-NHNN) including:

(1) For principal cardholders being individuals:

- 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.

(2) For principal cardholders being organizations: Organizations eligible to open checking accounts may use debit cards. Organizations being juridical persons duly established and existing under Vietnamese law may use credit cards, debit cards and prepaid cards. A cardholder being an organization may authorize an individual to use its card in writing or permit an individual to use its supplementary card as prescribed in this Circular.

(3) With respect to supplementary cardholders:

A supplementary cardholder may use card as specific authorization of the principal cardholder in accordance with the following requirements:

- A 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;

- A person from 15 to under 18 years old whose legal capacity is not completely or partially limited may use debit cards, credit cards and prepaid cards;

- A person who is 6 to less than 15 years of age, does not have lack of legal capacity or limited legal capacity, and obtains an authorization in writing made by his/her legal representative to permit him/her to use card shall be permitted to use a debit card or a pre-paid card.

(4)  In addition to the requirements for eligibility to use cards as specified in Clause 1, Clause 3 of this Article, a foreigner is considered eligible to use cards if he/she is permitted to stay in Vietnam for 12 months or longer.

3. Rules of card usage in Vietnam

Rules of card usage in Vietnam according to Article 17 of Circular 19/2016/TT-NHNN (amended in Circular 17/2021/TT-NHNN and Circular 28/2019/TT-NHNN) are as follows:

-  Each cardholder must provide sufficient and accurate information as required by the card issuer upon entering into the agreement 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 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:

+ Debit cards and personalized prepaid cards are used to conduct card transactions as agreed upon by the cardholder and the card issuer;

+ 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.

Credit cards shall neither be used to transfer money to checking accounts, debit cards and prepaid cards nor credit such accounts and cards;

+ Anonymous prepaid cards shall be used to pay for permitted goods and services via all POS terminals in Vietnam’s territory; and shall not be used to conduct card transactions on the Internet or via mobile applications or to withdraw cash. Deposit into anonymous prepaid cards is regulated by Clause 2 Article 14 of Circular 19/2016/TT-NHNN (amended in Circular 17/2021/TT-NHNN and Circular 28/2019/TT-NHNN);

+ Supplementary card issued to a supplementary cardholder aged under 15 years is not used to withdraw cash but only for pay for purchase properly as agreed upon in writing between the card issuer and the principal cardholder.

+ Cards may be used to pay for goods and services permitted by Vietnamese law, including those purchased overseas; except the cases specified in Point c Clause 3 Article 17 of Circular 19/2016/TT-NHNN (amended in Circular 17/2021/TT-NHNN and Circular 28/2019/TT-NHNN).

+ Debit cards, credit cards, personalized prepaid cards issued electronically may neither draw cash in foreign currency in foreign countries nor making international payments except for clause 4 Article 10a of Circular 19/2016/TT-NHNN (amended in Circular 17/2021/TT-NHNN and Circular 28/2019/TT-NHNN).

- The card issuer, acquirer shall perform necessary measures to update, check, review, compare and identify customers during the card use.

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