For every product and service provided to customers, the banks calculate appropriate fees on the basis of cost, the market segmentation as well as the customer base. The customers shall have to pay fees for those services they use or buy. This is a confirmation of Secretary General of Vietnam Bank Association, Mr. Nguyen Toan Thang on the interview of Banking Time Magazine’s reporter with him about the bank card services. Following is the full text of the interview.
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Reporter: The bank card sector has gained a very strong development over the recent years, especially the card services. Could you be pleased to tell about the outstanding progresses of card cervices?
Mr. Nguyen Toan Thang: Looking back to 20 years of card service development of Vietnam, we can see that its outstanding achievements are acknowledgeable. In 1996, when Vietcombank started providing card service, there were very few ATMs with a few hundreds of card holders. Today, there are 53 card issuers and card clearance members with a total amount of over one hundred million cards issued; and the ATM network has been extended to about 17,000 ATMs nationwide; the ATMs are inter – connected so customers can withdraw cash or make payment transactions with any ATMs. Up to now, bank card has become a popular payment tool and using cards has created a good habit for banking service users.
Reporter: It is an opinion that holders of domestic debit card (ATM card) have to pay from 20 to 25 fees, meanwhile they are not provided sufficient information about the fee policies. Can you explain more about the fees charged by commercial banks for using ATM cards?
Mr. Nguyen Toan Thang: Over the last years, in order to meet the demand of card transactions and payment of individuals and enterprises, the commercial banks have increased their investment to innovate payment technology, apply new technology and diversify their products and services, as well as integrated several added values to card services such as mobile banking, internet banking and SMS banking.
For each product and service, the commercial banks define and calculate an appropriate fee on the basis of cost, market segmentation and customer base. The fee schedule of card transactions and services publicized by banks is included various type of fees for various services. However, customers do not have to pay for all fees; they do have to pay for the only services they use. And charging fee, when the banks supply services, is definitely legitimate and for the purpose of reimbursing for the cost of ATM operations and investment expenses.
For ATM fees, the SBV has issued Circular No.35/2012/TT-NHNN to stipulate the regulation on charging fee and the framework of fee schedule. Accordingly, ATM card owners shall have to pay a certain type of common fees such as fee of cash withdrawing, internal and external network transfer, printing statement, …
Reporter: There is still a concern on safety, security and quality of card services such as ATM are out of cash, the interruption of ATM operations… Could you talk more details about the ATM infrastructure and technology?
Mr. Nguyen Toan Thang: Over the past years, Government and the State Bank of Vietnam have paid special attention and active guidance to commercial banks for accelerating the safety, security and ensuring the quality of banking services, especially for bank card transactions. At the Annual Conference of Bank Card Association of Vietnam 2017 just held in April, the commercial banks focused on discussing the effective methods to protect the safety and security of card transactions and to collaborate with police offices to prevent and avoid bank card criminals.
Actually, the commercial banks have regularly invest, innovate and step by step complete the infrastructure and technology for card transaction system and promptly notice the customers on new violations and criminals relating to bank card transactions.
Reporter: In your point of view, what are the main solutions for banking industry to improve the banking service quality and technology for payment and card payment services?
Mr. Nguyen Toan Thang: It is very important to complete the legal framework and policy to develop non-cash payment in general and card payment in particular to meet increasing requirements of citizens and society; it is special importance of establishing a sufficient infrastructure and technology for payment sector, and the most important is to apply a mordent technology to add more values and ensure the safety, security and convenience for electronic payment system and card clearance system. The last but not least, we also need to accelerate the communication and information to regularly notice and guide the customers using e-payment and card payment service effectively and safely.
VMH