SBV works to prevent credit fraud

In a move aimed at keeping the credit card market safe so it develops healthily, the SBV issued Document No9325 / NHNN-TT dated December 5, directing card issuers, card payment organisations, payment intermediary organisations and SBV’s branches across the nation to prevent the use of credit cards in sham transactions, in which card-accepting units permit card holders to withdraw cash via points of sales (POS) without making any real transactions related to the sale or purchase of goods and services.

The central bank said it had recently come across some cases where credit card holders had used the card to simply withdraw cash.

Such kind of transactions are prohibited under Vietnam’s law as they are a risk and can negatively affect the healthy development of the country’s credit card market, the SBV noted in the document posted on its website.

To manage the card market better, the central bank has asked card issuers and card payment institutions to scrutinise and select only reliable card-accepting units. Then, they have to closely monitor credit card transactions to avoid sham transactions, it said.

Before issuing credit cards to customers, these agencies must conduct a comprehensive assessment and scrutiny to meet the country’s legal regulations on granting credit.

The central bank has prohibited payment intermediary organisations from providing services for pretended transactions.

The SBV has also asked card issuers and card payment institutions to raise awareness among people about false transactions and other frauds related to card and electronic payments.

Besides raising people’s awareness about pretended transactions and following a non-cash payment policy, the SBV’s branches must regularly conduct inspections to uncover violations, the central bank said.