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What Should Users Be Aware of Regarding the Discontinuation of ATM Cards After 12/31/2021?

Some banks have issued a notice to their customers regarding the discontinuation of magnetic stripe ATM cards after 12/31/2021. Join us as we delve into this update and explore what it means for you!

Administrator

21 July, 2024

A number of Vietnamese banks have officially notified their customers about the discontinuation of magnetic stripe ATM cards. This prompts the question: Why are magnetic stripe ATM cards being phased out, and how can one switch to a chip-based card? Read on to find out!

1Why are Magnetic Stripe ATM Cards Being Phased Out?

Bank customers have been receiving notifications regarding the discontinuation of magnetic stripe ATM cards. Specifically, after December 31, 2021, magnetic stripe ATM cards will no longer be functional and will not be able to facilitate any transactions, including cash withdrawals.

Banks are transitioning from magnetic stripe cards to chip-based cards

This change is in accordance with Circular No. 41/2018/TT-NHNN issued by the State Bank of Vietnam. According to the circular, from December 2, 2018, to December 31, 2021, all payment cards in circulation issued by Vietnamese organizations must comply with the domestic chip card standards.

As a result, banks have stopped issuing magnetic stripe ATM cards since March 31, 2021, and are expediting the transition to domestic chip-based cards to ensure compliance with the circular’s timeline.

Additionally, current users of magnetic stripe ATM cards should contact their banks for guidance and support in switching to chip-based cards.

2How to Switch from a Magnetic Stripe ATM Card to a Chip-Based Card

If you are a magnetic stripe ATM card user and wish to switch to a chip-based card to continue using your account, you can follow either of the two methods below:

Visit the Bank Branch Directly

Simply bring your ID card and valid magnetic stripe ATM card to the bank and request to switch to a chip-based card, following the instructions provided by the bank staff.

Visit the bank to request a switch from a magnetic stripe card to a chip-based card

Register for a Card Replacement Online

Some banks, such as Vietcombank and TP Bank, offer online card replacement registration, and you can even get your new card at their LiveBank 24/7 branches within minutes.

All you need to do is:

Access the bank’s website or mobile app.
Select the relevant card services/management option (this may vary depending on the bank’s app).
Follow the instructions provided on the app or website.
Receive a notification regarding the request’s processing.
Return your old card and collect your new chip-based card.

Note:

– Only a select few banks offer online card replacement registration, with most others requiring in-person visits to their branches.

– Some banks offer free chip card replacement programs, including Nam Á Bank and Techcombank, among others.

– Each bank has its own regulations and policies, so it is advisable to contact your bank directly for guidance and support with the card replacement process!

It is worth mentioning that chip-based ATM cards offer enhanced security, faster transaction speeds, and better protection for cardholders.

Therefore, mark your calendars for December 31, 2021, and make the switch from magnetic stripe ATM cards to chip-based cards as soon as possible!

Chip-based ATM cards offer enhanced security and faster transaction speeds

This article has provided insights into the discontinuation of magnetic stripe ATM cards after December 31, 2021, and the steps to switch to a chip-based card. We hope you found this information helpful.

Frequently asked questions

The State Bank of Vietnam has directed banks to stop issuing ATM cards from January 1, 2022, and to gradually reduce the number of cards in circulation until they are completely replaced by domestic chip cards by the end of 2025. This is part of a strategy to enhance security and encourage the use of modern payment methods.

Chip cards, also known as EMV cards, offer enhanced security compared to traditional magnetic stripe cards. They are equipped with a microchip that encrypts data, making it much harder for fraudsters to copy or steal information. This reduces the risk of counterfeit card fraud and enhances the security of transactions.

Users are advised to gradually replace their ATM cards with domestic chip cards. They can contact their bank to understand the process and timeline for replacement. It is important to note that ATM cards will continue to work until their expiration date, but it is recommended to make the switch to chip cards as soon as possible to benefit from the enhanced security features.

No, the discontinuation of ATM cards will not impact online transactions or ATM withdrawals. Users can continue to use their existing cards for these purposes until they are replaced with chip cards. However, it is always advisable to adopt safer and more modern payment methods, such as contactless payments or mobile wallets, which offer added convenience and security.

Users can still withdraw cash without an ATM card through various methods. They can use their chip card and PIN at an ATM, or they can utilize cash withdrawal services offered by mobile wallets or digital banking platforms. Some banks also provide cardless cash access codes or allow withdrawals by presenting a valid ID at a bank branch.