Difference between magnetic card and chip card
Deploying the “Cards and POS conversion support according to VCCS standards Program” implemented by Vietnam National Payment Joint Stock Company (NAPAS) from June 15, 2022 to November 15, 2022 with the aim of supporting credit institution members to invest, upgrade POS terminals and issue chip cards in compliance with the basic standards of the State Bank of Vietnam (SBV), Co-opBank’s local ATM cardholders will get free conversion from magnetic card to chip card and free new issuance from now until December 31, 2022.
A magnetic card is a card containing a magnetic stripe with the task of storing encrypted customer information. The data on the magnetic card is permanently stored on the magnetic stripe and encrypted only once.
A chip card is a card with a microchip attached on the surface of the card, transaction data includes data stored on the chip and the generated cryptogram value changes with each transaction. This is the basic difference between chip card and magnetic card.
Why does Co-opBank encourage customers to switch magnetic cards to chip cards?
Along with the features of normal domestic payment cards such as withdrawal, money transfer, account inquiry, payment of goods and services directly at POS card-accepting units, Co-opBank Napas chip cards also fully meet technical factors of safety and security according to the regulations of the SBV and the VCCS standards. Cards using microchips to store card information instead of magnetic strips were minimizing fake and fraudulent transactions.
Once a transaction is made, the chip card will generate its own password attached and only the Issuing Bank can authenticate this password and authorize the transaction, so customers are completely assured of the transactions, customer’s information safety as well as avoiding fake cards.
In addition, Co-opBank Napas chip cards were also integrated useful features, making an important contribution to promote non-cash payments. Specifically, with contactless chip technology, customers can experience fast, convenient, safe forms of payment, suitable for small value transactions. Accordingly, customers just need to bring the card close or lightly tap the card on the POS device which has the contactless accepted icon to complete the payment transaction without entering PIN code, get the bill and sign and experience fast transaction speed within only 0.2 – 0.3 seconds.
Co-opBank has been promoting digital products and services to customers, including chip cards, most of Co-opBank’s magnetic cardholders are now switching to Co-opbank Napas Chip cards.
With the desire to bring the best value to customers, Co-opBank continues chip cards free of charge from now until December 31, 2022. Customers only need to bring their ID card/Passport to any Co-opBank’s transaction point to get their new chip cards. At the same time, customers can also choose bank account number of their choice.
Switch to chip card or open a new one today to experience the benefits and enjoy the promotions by Co-opBank and Napas.
