Thus, all customers who apply for new ATM cards at banks will get ATM cards with chips. Besides, banks also encourage customers who are using magnetic stripe ATM cards to switch to chip cards.
The conversion from magnetic stripe ATM cards to chip cards has been done free of charge at many banks nationwide.
The chip card is capable of storing and encrypting information with a high level of security. When making payment, the chip card will generate a unique and non-repeating transaction code, helping to reduce the risk of fraud and counterfeiting.
Meanwhile, a magnetic stripe card is a card with a magnetic stripe behind the card, so data on the magnetic stripe card is stored permanently on the band of magnetic material.
Therefore, it easily leads to the risk of identity theft and transaction fraud. The conversion of magnetic stripe cards to domestic chip cards will contribute to enhancing safety and security and increasing the speed of transaction execution.
According to the SBV’s roadmap, by the end of this year, 100 percent of bank cards and card-accepting devices in Vietnam must be converted to chip card standards.