Cards from ATMs are still accepted after 2021

Recently, the State Bank has announced that customers can still use magnetic cards to make transactions at ATMs and POS normally after December 31, 2021.

Specifically, in the document explaining the roadmap for applying the conversion of magnetic cards to chip cards, the State Bank said that Circulars 19 and Circular 41 of this agency only require to stop issuing domestic magnetic cards after the deadline. Point 31/3/2021 and “there is no regulation on stopping or refusing card transactions for domestic magnetic cards in circulation (cards with expiry date)”.

Therefore, the State Bank requires banks to ensure the interests of cardholders. This means that all transactions of cardholders from the cardholder go smoothly.

In fact, banks have started the process of converting magnetic ATM cards to chip ATM cards since March 31, 2021.

The purpose of converting the issuance of ATM cards from magnetic form to chip-based form integrating new and more advanced technologies is to ensure more safety for users.

Distinguish between magnetic ATM card and ATM chip card.

Magnetic ATM cards receive information by the back magnetic stripe and it is not encrypted. If the card is stolen, the bad guys can immediately use the card to make unauthorized transactions, then discard it and have little risk of detection.

Meanwhile, with ATM cards, the chip is in the form of EMV chip, with the chip located on the front of the card to help encode information according to the computer’s binary number sequence and continuously change. Each new transaction generates a new and unique transaction token (also known as a “token”) so each token becomes useless after the completion of the transaction it represents so data security is very good.

New chip ATM card length: 85.60mm X width: 53.98mm, equal to the old magnetic card.


Related Posts

Leave a Reply

Your email address will not be published.