Recently, customers and especially the general public have been particularly concerned about information related to credit card services when there are incidents related to customers using credit cards at commercial banks. From a management perspective, Mr. Nguyen Duc Lenh – Deputy Director of the State Bank of Vietnam (SBV) Ho Chi Minh City branch shared that in addition to providing products and services, customer care work, information communication activities play an important role and need to be paid attention to in the process of expanding and developing banking services, especially in the context of modern banking development today.
The provision of basic knowledge and regulations about bank cards to advise and guide customers specifically and regularly not only create favorable conditions for customers to use the services but also contribute significantly to limiting the existence-related problems with credit cards.
Firstly, bank cards, if classified according to the function and nature of the money in the account, will have debit cards and credit cards. According to this classification, the rights and responsibilities of the cardholders are different. In which, if the debit card is money on the card account (ATM card, prepaid card) is the customer’s deposit, then the credit card is a loan, the customer borrows from the bank for use. Therefore, the regulations on card use, responsibilities, rights, and obligations of customers are different.
This differentiation, to realize and have solutions in the information dissemination and advice for customers of each commercial bank and each bank employee in trading and advising customers of the bank, This content is not new, but it must be grasped and implemented with appropriate, regular, practical and effective communication forms.
Secondly, for debit cards, to use this card, in essence, customers must open a payment account and deposit money into the account for use. The opening and use of this account by both customers and banks must comply with the regulations of SBV.
Accordingly, besides information dissemination about the utility of this service with the benefits and conveniences of non-cash payment services from account services, ATM card services… it is necessary to pay attention to information dissemination and advice for customers to understand the regulations on rights and obligations of account owners, cardholders to facilitate the use of services as well as limit the occurrence of incidents that affect the interests of customers.
Note on information security content, providing information to the bank; as well as regulations on accounts, maintaining balances, and transactions. Account closure must comply with the regulations, banks only temporarily lock, close accounts when requested by customers (except for cases where the account owner has not fulfilled the payment obligations under the coercive decision of the competent state agency or not fully paid the debts to the service providers where the account was opened).
In the case, the deadline for closing a payment account due to failure to maintain a minimum balance and no transaction has occurred for a long time; the notice period for account closure and other specific issues related to account closure in this case specified and publicly announced for customers by the payment service providers.
Thirdly, for credit cards, in terms of benefits of use, it is a type of bank card that allows customers to spend first, pay later within a specified period of time (usually from 30 to 45 days) so that customers repay debts without interest. After this period, the bank will charge late payment interest according to the regulations.
In essence, this is a loan amount and with the advantage of not having to pay interest on loans for a certain period of time, so using credit cards also brings convenience and good benefits for customers, in personal expenses, and consumption and bring common benefits to the economy: customers, banks, and the economy when accessing the benefits of stimulating consumption, commercial, service, and tourism development; stimulating the development of banking services… if credit cards are used effectively and in accordance with regulations by customers.
However, the money in the card account for payment and use is the bank’s advance amount, the bank’s loan. Therefore, customers have a responsibility to repay and legally, customers using credit cards must comply with the regulations on borrowing regimes of SBV (provisions related to credit cards in Circular 39/2016 / TT-NHNN).
To use a credit card and be granted a credit card, customers must demonstrate financial capacity and if they meet the conditions, banks will issue cards and give appropriate credit limits. All of these contents need to be informed and advised to customers; monitor and urge customers as a loan to not only help customers use the card effectively, limit overdue debts arising, and limit incidents and risks related to credit card activities and those arising undeservedly, affecting the quality of services, the card brand as well as for cardholders.
Doing this well will not only help commercial banks expand and develop banking services effectively but also help customers, people use services effectively and limit the occurrence of risks in the process of using services.
