Which organization can be card issuers in Vietnam?

Which organization can be card issuers in Vietnam? (Internet image)

1. Which organization can be card issuers in Vietnam?

Card issuers include:

- 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.

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

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

- 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.

- The card issuer shall comply with Specifications of domestic chip cards upon issuance of cards with BINs issued by the State bank according to the conversion roadmap as prescribed in Article 27b of Circular 19/2016/TT-NHNN.

A card issuer under special control shall comply with the conversion roadmap under a decision of the Governor of the State Bank as the case maybe.

(Article 9 of Circular 19/2016/TT-NHNN, as amended by Clause 2, Article 1 of Circular 17/2021/TT-NHNN)

2. Procedures for card issuance in Vietnam

- A card issuer in Vietnam must lay down internal regulations on card issuance within its system.

When issuing non-physical cards, a card issuer must formulate documents on process of card opening and closing, process of card transactions, process of risk management (including the following steps: Identification, measure, control and actions against risks), scope of card usage and measures for control of card usage within the agreed scope.

- Before issuing a new card model or changing the current card model, the card issuer must submit a notification of card model to be issued to the State Bank of Vietnam according to the template stated in the Appendix enclosed with Circular 19/2016/TT-NHNN. If issuing non-physical cards, the card issuer must enclose this written notification with documents about the issuance of non-physical cards as specified in Clause 1 of Article 10 of Circular 19/2016/TT-NHNN.

- When a principal cardholder requests a card issuer to issue a debit card, the principal cardholder is required to have a payment account opened at such card issuer.

- Any arrangement on card issuance and usage must be made in the form of agreement on card issuance and usage in accordance with this Circular and relevant law provisions. The contents of the agreement shall comply with Article 13 of Circular 19/2016/TT-NHNN.

- Before entering into an agreement on card issuance and usage, the card issuer must request the cardholder to provide sufficient information and necessary documents for identification as prescribed by law on anti-money laundering.

If a card is issued to a foreigner, the card issuer must request such foreign cardholder to provide necessary documents for verification of his/her stay in Vietnam, including:  passport, visa, certificate of visa exemption, certificate of temporary residence, temporary residence card, employment contract, admission decision or other documents proving his/her stay in Vietnam.

Other necessary documents of customer upon entering into an agreement on card issuance and usage, which are originals, or copies accompanying originals for comparison, or electronic copies, or authenticated copies or copies, issued from master register as per the law.

In case the copies are presented with the originals for comparison, the card issuer shall bear the certification in the copies and be liable for the accuracy of the copies compared to the originals.

If the documents are electronic copies, the card issuer shall use technology to collect, inspect and compare to ensure that the electronic copies contain adequate, accurate particulars and match the originals as per the law.

- Card issuers in Vietnam must use BIN issued by the State Bank, other than regulations in Clause 7 of Article 10 of Circular 19/2016/TT-NHNN.

- Any card issuer in Vietnam that enter into an agreement on co-branded card with an international card association is entitled to use the BIN issued by such international card association.

- Card issuers may not agree with other organizations to restrict the issuance of co-branded cards.

- When the issuance of a card model is suspended, the card issuer must sent notification in writing to the State Bank for management.

- The card issuer may issue debit cards, credit cards, personalized prepaid cards to principal cardholders who are individuals using electronic method. The individual cards using electronic method shall be issued in accordance with this Article and Article 10a of Circular 19/2016/TT-NHNN.

(Article 10 of Circular 19/2016/TT-NHNN, as amended by Circular 26/2017/TT-NHNN and Circular 17/2021/TT-NHNN)

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