What Online Banking Transactions Don’t Require Biometric Authentication From July 1st?

The new facial recognition authentication requirement will apply to the following transactions: initial activation of digital banking services or device changes; money transfers over VND 10 million; transactions valued at VND 10 million or less but with a daily cumulative value of over VND 20 million; payments exceeding VND 100 million; international money transfers and foreign currency purchase requests (regardless of transaction value).

Not all online transactions are subject to mandatory biometric authentication. For instance, many basic transactions that cater to the daily essential needs of the majority of the population, such as domestic money transfers, e-wallet top-ups of up to VND 10 million or a daily cumulative transaction value of up to VND 20 million, and bill payments for electricity, water, telecommunications, tuition, and medical fees, with a daily cumulative transaction value of less than VND 100 million, can still be performed on banking applications as before July 1, 2024.

To authenticate transactions with facial recognition, customers need to register their biometric data with their bank beforehand. According to bank instructions, users can proactively register their biometric data on their smartphones in three steps: taking photos of the front and back of their chip-equipped citizen identity cards; scanning the Near-Field Communication (NFC) chip on the cards; and scanning their faces and verifying one-time passwords (OTPs).

Most people find this process simple and quick. However, many individuals have reported difficulties with biometric data registration on banking apps, especially when it comes to scanning the NFC chip on their identity cards.

In cases where customers have chip-equipped identity cards but use phones that do not support NFC or experience issues with NFC scanning, they can visit their bank’s branch in person for assistance. (Customers only need to update their biometric information with the bank once.)

Facepay, or facial recognition authentication, serves as an additional security layer on top of SMS OTP or Smart OTP verification. When performing transactions above a certain value, customers must successfully authenticate with Facepay before proceeding to the OTP step. The implementation of Facepay enhances protection for customers amid the increasingly complex landscape of online fraud, information theft, and asset misappropriation.

With Facepay in place, even if fraudsters manage to steal customer information, they will find it challenging to misappropriate assets (i.e., transfer large sums of money). This additional security layer helps minimize potential losses for customers in the event of a security breach. The State Bank of Vietnam’s decision to mandate Facepay reflects its strong commitment to bolstering security and privacy in online payments.