What is a Chip-Embedded ATM Card? How to Change and Use It?

With the aim of helping users possess smart, modern, and highly secure chip-embedded ATM cards for transactions, the State Bank of Vietnam has directed banks to stop issuing magnetic stripe cards and switch to chip-embedded cards. So, what is the chip-embedded ATM card? Is it mandatory to change to chip-embedded cards?

An overview of information about chip-embedded ATM cards from banks such as Techcombank, BIDV, Agribank, Vietcombank, etc.

1. What is a Chip-Embedded ATM Card?

A Chip-Embedded ATM Card is a smart card with electronic microcircuits embedded on its surface. These microcircuits store transaction data and encrypt the cardholder's personal information with high security when conducting transactions at POS and ATM machines.

Chip-Embedded ATM Cards come in two main types: contact and contactless. The difference between the two lies in how the card interacts with the card slot.

+ For a contact Chip-Embedded ATM Card, to write, erase, or access data, you need to insert the card into the card reader slot.

+ In the case of a contactless Chip-Embedded ATM Card, you don't need to physically touch the card to the reader. Just keep the card 2 - 10cm away from the card reader, and it can still read and write the information on your card.

Image of a chip-embedded ATM card, guide on how to differentiate between magnetic stripe and chip cards
 

2. What is the purpose of a Chip-Embedded ATM Card?

As mentioned earlier, for every transaction conducted on a Chip-Embedded ATM Card, the chip encrypts the customer's personal information, constantly changing with each transaction. A successful chip transaction requires approval from both the cardholder and the card issuer. This enhances the card's information security, making it challenging for hackers to decode or steal.
 

3. Where can you withdraw money with a Chip-Embedded ATM Card?

According to the transition roadmap from magnetic stripe to Chip-Embedded ATM cards in Circular 41/2018/TT-NHNN, starting from December 31, 2021, 100% of ATMs and card-accepting devices at points of sale in Vietnam by card issuers comply with the domestic chip card standards. Therefore, using a Chip-Embedded card from any bank allows you to easily withdraw money at ATMs of the issuing bank and at ATMs of banks affiliated with the issuing bank. Additionally, you can use the chip card to conveniently pay bills at stores accepting POS payments.

Guide on how to withdraw money with a Chip-Embedded ATM Card
 

4. Is it mandatory to replace a Chip-Embedded ATM Card?

Based on the guidelines from the State Bank of Vietnam regarding the implementation of domestic Chip-Embedded ATM Cards, some conclusions can be drawn:

- Circulars 19 and 41 only require the cessation of issuing magnetic stripe ATM cards after March 31, 2021, without specifying the discontinuation or refusal of card transactions for existing domestic magnetic stripe cards (with remaining validity).

- For customers using existing domestic magnetic stripe ATM cards (with remaining validity) and have not been converted to chip cards or unable to visit the bank for conversion, after December 31, 2021, these cards can still be used for cash withdrawal, fund transfer, balance inquiry, and bill payment at POS terminals and bank counters as usual.

Therefore, the central bank does not compel users to switch to Chip-Embedded ATM cards and does not reject transactions with existing magnetic stripe ATM cards. If your current ATM card is still valid, after December 31, 2021, you can continue using it for transactions. However, the security level of this card during transactions will be lower compared to chip-embedded cards.

5. Is there a fee for replacing a Chip-Embedded ATM Card?

Currently, from now until the end of 2021, most banks offer a 100% fee waiver when switching from magnetic stripe to Chip-Embedded ATM cards. However, some banks, like Agribank, have discontinued the free chip card replacement program and charge 50,000 VND per card replacement. To get accurate information about the fees for replacing ATM cards from magnetic stripe to chip, you need to contact the hotline to inquire about official information.

Fee for replacing Chip-Embedded ATM cards
 

6. How to replace a Chip-Embedded ATM Card

If you are using domestic ATM cards from banks such as Vietcombank, Agribank, Techcombank, TPBank, BIDV, MBBank, etc., you can contact the bank's hotline to inquire and visit the bank's counters directly for card replacement. Additionally, if you are using the internet banking or mobile banking applications of these banks, you can also register for Chip-Embedded ATM card replacement online. The newly issued chip card will be delivered to your address, or you can pick it up directly from the bank.

If you have a Techcombank account and want to switch to a Chip-Embedded card, you can refer to our article on how to replace a magnetic stripe card with a Techcombank chip card for guidance.
 

7. How to activate a Chip-Embedded ATM Card

Upon receiving the Chip-Embedded ATM card, you need to activate the card and change the PIN to use the services. Typically, activation can be done through methods such as SMS activation, activation at the bank's ATM, or activation through the banking app. Each bank will have its own regulations on card activation, so you need to contact the bank to find a safe and convenient way to activate the card.

Quick and secure guide on activating Chip-Embedded ATM cards
 

8. How to use a Chip-Embedded ATM Card

Using a Chip-Embedded ATM card is similar to a regular ATM card. You can insert the card into the card reader (for contact-type chip cards) or place it near the card reader (for contactless chip cards) and perform transactions such as withdrawal, deposit, transfer, balance inquiry, etc., on the card.

Here, Mytour has compiled comprehensive information about the concept, differentiation, and usage of Chip-Embedded ATM cards. We hope the information in this article is helpful to you, assisting you in understanding and making effective, convenient decisions regarding the use and exchange of Chip-Embedded ATM cards.