Các loại thẻ ngân hàng và ưu nhược điểm của các loại thẻ ngân hàng được phát hành bởi Ngân hàng thương mại cổ phần Ngoại thương Việt Nam (Vietcombank). Nowadays, bank system did research and put into practice of noncash payment, which is very variety and diversify. However, in each bank, they choose suitable form of noncash payment, based on economy system, management skill, etc. In Viet Nam, the economy has shifted to basic market economy. Position, role and functions of business, commercial bank, the State Bank has changed the model of a market economy. Therefore, noncash payment mode is also excellent fit to practice. Noncash payment stipulated in Decree No. 642001 ND – CP 20th September of the Government includes the following forms.
12/10/2022 • • DECLARATION I hereby declare that the graduation project is based in my original work except for citations and data, which have been duly acknowledged I also declare that it has not been previously or concurrently submitted for any other course at Academy of Finance or other institutions • Student’s name: • • • • • Trinh Thi Mai Huong • • ACKNOWLEDGEMENT This graduation thesis would not have been completed without the guidance and the help of several individuals who in one way or another contributed and extended their valuable assistance in the preparation and completion of this study • First and foremost, I would like to express my gratitude to my thesis supervisor M.A Pham Thi Lan Phuong for her inspiring guidance, keen interest and critical evaluation of the work for the successful completion of my thesis • Moreover, I would like to convey my thankfulness to Ms Thieu Quang Hiep, Director of Vietcombank Vinh Phuc branch, Ms Nghiem Thi Minh Thuy- one of the Deputy Directors, and all officers of Department of Accounting, Card Department, especially Mr Bui Duy Anh in Intrabank Oprerations and Reporting Department, who have supported and facilitated my thesis to be done • Finally, I am indebted to all those who have kindly advised and helped me towards the completion of my research • 2 • • • • • • • TABLE OF CONTENT DECLARATION ACKNOWLEDMENTS TABLE OF CONTENTS LIST OF ABBREVIATIONS LIST OF TABLES LIST OF FIRGURES Chap 1: LITERATURE REVIEW 1.1 Overview of commercial bank 1.2 Overview of non-cash payment 1.3 Definition of non-cash payment 1.4 Form of non-cash payment 1.4.1 Payment by check 1.4.1.1 Check transfer 1.4.1.2 Check 1.4.2 Payment by bank transfer 1.4.3 Collection authorized 1.4.4 Letter of credit 1.4.5 Bankcard 1.5 Development history of card 1.5.1 Characteristics 1.5.2 Classifications 1.6 Roles of bankcard 1.6.1 Role of bankcard for economy 1.6.2 Role of bankcard for social 1.6.3 Role of bankcard for card user 1.7 Specialist skills in card business 1.7.1 Marketing 1.7.2 Risk management Chap 2: THE STUDY 2.1 Subject of the study 2.1.1 Overview of Vietcombank, VInh Phuc branch 2.1.2 Organization and mission of each department 2.1.3 The operations 2.2 Data collection instruments 3 2.3 Data collection procedures 2.4 The findings 2.4.1 From document review: the practical situation about card product of VCB, Vinh Phuc branch 2.4.1.1 Types of card payment issued by VCB 2.4.1.2 The practical situation about issuance and card payment in VCB, Vinh Phuc branch 2.4.1.2.1 Card issuing operations in VCB, VInh Phuc branch 2.4.1.2.2 The practical situation about card payment in VCB, Vinh Phuc branch 2.4.2 From observation: Operation of card payment in VCB, Vinh Phuc branch 2.4.2.1 Subject involved in operations of card payment 2.4.2.2 Process in issued card and card payment 2.4.3 Assessment of operations quality and card payment in VCB, Vinh Phuc branch 2.4.3.1 Benefits 2.4.3.2 Drawbacks 2.4.3.3 Cause of shortcoming in card payment in VCB, Vinh Phuc branch Chap 3: RECOMMENDATIONS 3.1 Orientations for development of card business in VCB, Vinh Phuc branch 3.1.1 Card issuance 3.1.2 Card payment operations 3.1.3 Human resource 3.1.4 Technology, engineering 3.2 Some solutions to improve card payment services in commercial bank for foreign trade of Viet Nam, Vinh Phuc branch 3.2.1 For technology 3.2.2 For human resource 3.2.3 For marketing 3.2.4 Expanding POS network 3.2.5 Limiting risks in card payment 3.3 Recommendations 3.3.1 For government 3.3.2 For State Bank 3.3.3 For banking associations of Viet Nam CONCLUSION REFERENCE 4 • • • • • • • LIST OF ABBREVIATIONS ATM: Automatic teller machine ATMs: Automatic teller machine POS: point of sale Vietcombank: Commercial bank for foreign trade of Viet Nam VCB: Vietcombank, Vinh Phuc branch VND: Vietnam dong • 5 • LIST OF TABLE • TABLES • GE • Table 2.1: operating result form 2011-2013 of VCB, Vinh • Phuc branch • Table 2.4.1 limit of using VCB-connect 24 • • Table 2.4.2 Fees of VCB-connect 24 card • • Table 2.4.3 limit of using international debit card • • Table 2.4.4 Credit limits of international card in VCB • • Table 2.4.5 Fees of VCB Visa/ Mastercard Source in VCB • • Table 2.4.6 Credit limit of VCB American Express • • Table 2.4.7 Number of debit card-connct 24 issued from 2011- • 2013 in VCB Vinh Phuc • • Table 2.4.8 Revenues form card issuance of VCB-connect 24 • Table 2.4.9 the number of international credit cards issued in • VCB Vinh Phuc branch • Table 2.4.10 Operations of ATM machines in Vinh Phuc • province from 2011 to 2013 • Table 2.4.11 Situation of debit card transactions, issued by the • VCB Vinh Phuc from 2011 to 2013 6 PA • • 7 • LIST OF CHART • CHARTS • GE • • Chart 2.4.1 The number of VCB-connect 24 card issued • Chart 2.4.2 The number of international credit cards issued • from 2011 to 2013 in VCB Vinh Phuc • Chart 2.4.3 The number of ATM machine and POS machine in • province from 2011 to 2013 • Chart 2.4.4 Revenue from card servies in VCB VInh Phuc • from 2011 too 2013 • • 8 PA • LIST OF FIGURES • • • Figures e • Figure 2.4.1 Card payment transaction • • Figure 2.4.2 Card issuance process • • Figure 2.4.3 Card payment process • • • • 9 Pag • INTRODUCTION • 10 10 • Second, type of card is extended and increased strongly with premium features Besides, card issuance process is simple, approachable • Third, VCB Vinh Phuc branch always pays attention on promotion, marketing Thus, it was known widely and attracted people to use Furthermore, VCB also links with universities, companies and other organizations to promote the development through bringing more benefits to customers • Last, the staffs are trained to bring the best service to customers • 2.4.3.2 Drawbacks • First, ATM machines still limited and ineffective Because a few tables above may notice proportion of domestic debit card issued by Vietcombank rose gradually in several years, the ATMs exists many disadvantages for customers In addition, the branch has not fitted out for ATMs and CCTV to ensure safety for cardholders when transactions, avoiding the evildoers withdrawals from the account of others • Second, The phenomenon of error computer equipment still occurs frequently In addition to the error due to subjective reasons like out of bills, out of money; this is because of fault lines, machinery breakdown This significantly affected the reputation of the bank • Third, customer services are facing many problems: ATMs still exists malfunctioning condition, stop working machine, jammed cards, customers could not withdraw money • 2.4.3.3 Causes of shortcomings in card payment in VCB Vinh Phuc • From bank • First, the development of ATMS requires investment of high technical equipment Thus, VCB not only have to invest to meet the standard software management systems, but also to invest card hardware for the card processing system Whereas, without the maintenance unit in Vietnam, which require banks to have backup device, leading to increased investment costs for this operation This is also causing of little ATMs in province 62 62 • Second, the coordination between the Bank and the authorities concerned have not been properly concerned, which restricts the exchange and coordination of information, especially information related to counterfeit card and risks associated with card payments • Last, the bank has not held a course for the Bank of card operations Banks forced to attend courses organized by the international card organizations As a result, these documents, as well as training activities for professional card in Vietnam virtually did not exist Therefore, the cost of materials and participation in training courses abroad is a significant cost Therefore, level of staff is missing some aspects • From people • The habit of using cash in people's life have formed and rooted Besides, the GDP of Vietnamese is still low when compared to some countries in the region • When payment by card, the transaction must repot to bank, which is affecting taxpayers of unit The units supply of goods and services cannot be tax evasion for these transaction They have not yet aware of the convenience of payment by card to attract customers, increase sales and create reputation in the market, managing staff but even getting extra pay from card user, making it difficult for not wanting to accept the card, make customers hesitate to use the card • • • • • • 63 63 • • CHAP 3: RECOMMENDATIONS 3.1 Orientations for development of card business in VCB, Vinh Phuc branch • Business card clearly carries no interest profitable as high as the basic services of the branch However, it takes significant role in the business of development strategy Therefore, the branch has made development-oriented activities in the coming period for each factor, which will be shown herein • 3.1.1 Card issuance • The central task of the bank is concentrating to promote the card issuance and coordinate among card department with other departments such as at Credit Department, exchange department to improve both the quality and quantity of activities • In order to widely introduce card payment, marketing programs, advertising, huge promotion should be promoted frequently and more touching • Not only the consolidation of existing products, but also the introduction of new products is a prerequisite to dominate this potential market • 3.1.2 card payment operations • Maintaining and developing POS, automate and improve quality of service in the card payment Cooperation with others bank to expand POS’s network • Investments in marketing strategy to expand the market and the payment card used in the following forms: increased spending on marketing to research and development of new cards, promotions for customers using the card • 3.1.3 Human resource • Organizing a training course for all staffs to meet with the increasing demands of a changing technological in world card 64 64 • Organize extracurricular activities, reward for staffs to create a good relationship of the staff to be able to help and exchange professional experience together Simultaneously creating a linkage between bank staff, to have a sense of responsibility, dedication and the motivation among staffs while working to bring the best results • 3.1.4 Technology, engineering • Investing some modern machines as well as continued upgrades existing mechanical systems Gradually synchronize engineering systems used in the card Periodically invite foreign experts to maintain the equipment for issuance and card payment • 3.2 Some solutions to improve card payment services in commercial bank for foreign trade of Viet Nam, Vinh Phuc branch • 3.2.1 For technology • Card payment is a very modern payment with the help of the most advanced technology in the world Therefore, investment in technology has a very important role in the development of payment operations • The level of technology is the factor that determines the quality of the card and payment services, it is also an important factor in competition with other commercial banks Moreover, technology is a weapon to fight the criminals specialized fraudulent Banks should choose the modern technology, the technology is being widely used in the world and in accordance with the bank to manage information systems, improving the quality and quantity of card payment operations, and simultaneously detect and prevent fraudulent criminals • 3.2.2 For human resource • Technology development but no staff and employees have sufficient qualifications to meet, thus they cannot make good business cards 65 65 • Thus, besides raising the level of expertise of staff, the staff should also be fitted with proficient foreign language Moreover, bank should timely replenishment of young officers, who are qualified and good quality as the core to the VCB organization • VCB has 20 years operated in the field of card but card business has only several years of operating and quite new Therefore, the staffs at card department are less experience in this profession, so branch should strongly invest in human resources in both quantity and quality Beside, the branch should close in the recruitment process, training new staff to be able to meet the requirements of the job and run the modern machinery • 3.2.3 For marketing • The progress of science and technology makes the card market has no existed boundaries of space and time, so the bank's marketing strategy in this field will also need changes to promote development operations • Selecting target market • In business activities of all business sectors, the choice of target market takes a very significant role When correctly identify target customers, people could make the business more suitable policy to serve customer better and enhance business efficiency Release and payment card at VCB Vinh Phuc branch is one of the types of bank, so the selection of target markets is also very important • Focus on employees who are in industries with high and stable income, such as oil and gas, banking, telecommunications, aviation as well ass the owners of private enterprises also gradually accounted for the bulk These are people with good incomes and steady, with demand and conditions to come regularly to supermarkets, hotel, tourist destination This is a potential customer groups and tend to increased in the future, so VCB needs to care about them 66 66 • Another subject who really need to use card payment and they accounted for a huge number of customer who are using card payment That is foreigner, investor in Viet Nam, residents, tourist Thus, bank also should care about • • 67 67 • • Diversifying forms of card At the moment, VCB Vinh Phuc branch has released types international credit card: visa, master and amex Moreover, bank accepted to payment for the leading cards: Visa, MasterCard, JCB, American Express, Diners Club and China UnionPay Thus, it could be said that the services of the bankcard is quite diverse However, branches need to study and concentrate issuance of domestic payment card, by a group of local banks linked issuance, common to banks in the group and only within the territory of Vietnam • Besides issue card, VCB need to improve the method of release for international credit With 10 million of credit limit a day, it seems to be far demand of daily spending of people Banks should be able to lower the minimum rate to about 34 million With the new credit line, many high-income customers and medium-sized cities can participate using the card Also, the procedures for card issuance will be easier Customers only need to have professional and stable income, have permanent residence in the local, with good background and with guarantee of relatives to have a credit card This makes the risk of the bank has also fallen and expand the scope of the cardholder transactions, increased utility for the card user • Promoted advertising, introduced card services • In order to make customers clearly know about card and how to use, VCB need to step up advertising and introducing services to majority of the population for understanding economic benefits and convenience when using the card through various measures • Advertising on the mass media is essential work, it strongly impact on people's cognitive, break people’s psychological of hesitate using new services • Banks also should organize a team of staff who are capable of persuading well as well as professional qualifications to organize customer conference for introducing the card or counseling sessions about card 68 68 • • Promote distributors and encourage people to have personal bank accounts Banks need to establish a network of branches and transaction offices as well as create a distribution channels for customers to get product in convenient and affordable way Moreover, VCB need to maximum satisfaction of customer needs Therefore, banks need to have incentives to increase the number of personal accounts, such as the customer does not have to pay fees when performing payment transactions through accounts at the bank deposits On the other hand, VCB can give specific forms of promotion such as sending souvenirs for regular customer transactions or person who have average balance on deposit accounts stability or lucky draw for customers to open accounts in a certain time period • 3.2.4 Expanding POS network • Nowadays, the bank's competitiveness in the card market is extremely tough There has been a certain establishment of POS, accepted VCB’s card then turned to another bank's card Because others bank have more preferential policies than VCB such as: reducing the discount rate, deduct the percentage values for merchant payment, credit incentives • Therefore, VCB Vinh Phuc branch need to increase POS network because this is an important subject in process of card payments Number of POS is also one of the significant factors to boost sales as well as the number of card payment issued • 3.2.5 Limiting risks in card payment • Currently, the risk of payment cards is relatively low at VCB, Vinh Phuc branch because the bank has taken certain method to ensure their business However, with low level of technology and ability in the field of low cards, the risk in bank operations is also not small Therefore, VCB need to develop risk management strategies in any new business so VCB can ensure the safety of operations 69 69 • First, developing and training of highly qualified staffs, timely detect errors or fraud Also, to prevent the transfer of the card and use the card to steal money form other people, banks should apply the cardholder printed on the surface of the card Additionally, banks should guide people how to use and how to preserve, security card, contact procedures with bank in case of occurring stolen, lost or changed contacts • 3.3 Recommendations • Although the efforts of bank itself is very necessary thing, but for expanding of card issuance and payment is really development, banks in general as well as especially VCB Vinh Phuc need the help from the government, the state Bank of Vietnam and the Union Bank of Vietnam card payment • 3.3.1 For government • Assistance of government is crucial for all economic sectors If government has strongly support measures on tax policy, on regulations for VCB to develop services Thus, VCB can be able to contribute economic development - lasting society, implement the stable monetary policy, modernization of banking technology, reduce the amount of cash in circulation then this services will obtain a certain results All the recommendations for government will be shown herein: • Creating economy environment, stable society • A stable socio-economic environment is always a solid foundation for all the development It is absolutely true for the operations development of payment cards The more stable of social economic as well as sustainable development, the more improvement of people's lives Moreover, people can improve earnings and they have the opportunity to interact with modern payment technology Thus, this is one of the favorable conditions for banks to be able to expand relations with the card organization in the world • Giving a policy to encourage card payment in Vietnam 70 70 • Viet Nam is a country where the use of cash still accounts for the majority of the transactions Therefore, using card payment should be encouraged in Vietnam to reduce the amount of cash circulating in the economy The necessary thing is to reduce the value added tax for this type of service as the kinds of goods that the State encourages consumption • Tax rate for banking activities should be adjusted down to the branch in rural areas, to facilitate the expansion of services That amount of money can use for modernization investment and technology, develop more gadget comes and advertising products to market • In addition, the state should also consider reducing import duties for machinery and the issuance of the card payments, because most of these devices are imported • 3.3.2 For State Bank • The state bank plays a major role in the orientation of overall strategic for bank to perform payment card services through some following solutions: • State Bank should directly requires the orientation of card development and directly supervise as well as perform of commercial bank Ensuring a healthy competitive environment and equal to the bank’s operations, avoiding unnecessary competition causing duplication investment and wasted • As the head of the bank, the state bank should give technical assistance as well as a portion of funds for banks to develop card operations For instance, attending to basic infrastructure for ATMs, POS systems in province • The state bank also need to have some certain preferential policies to boost the competitiveness of domestic banks with foreign banks as reserve rate hedging, tax incentives Moreover, VCB should be allowed to apply the incentive program for customers in order to attract customers, ensure competitiveness for the banks • The state bank should regularly organize training courses as well as help VCB to collect the information, basic material and intensive of card operations • 3.3.3 For banking associations of Viet Nam 71 71 • Banking associations are a pivotal in improving the forms and methods of operation Associations frequently have worked with the State Bank and maintained close relationships with the international card organizations in order to facilitate and further promote the development of card business in Vietnam • The Association has collected favorable situation as well as difficult problems of the Bank on the issuance and payment, to find the solutions Associations multiply developments to show their criterion “forum of cooperation and exchanging of experiences in Vietnam Bank Card Payment” However, the Association must work vigorously and more effectively, with the strict agreement on sanctions, more positive contribution to the development of card services in Vietnam market • • 72 72 • Conclusion • • Bankcard is a modern form of payment, multi-utility and very popular in the world Therefore, the issuance and card payment business is an indispensible the business of a bankcard, it also contributes to increased income and diversify the operations of bank Hence, bank always focused on science and technology to modernize banking technology, to meet customer demand • Operation of card payment is the strength of the Bank in Viet Nam However, in recent years, VCB Vinh Phuc branch has also encountered many difficulties and challenges, but with enormous potential market of Vietnam card and right strategy, I believe that VCB, Vinh Phuc Branch will achieve better results Hoped that in the near future, payment cards will bring more its benefits to the Bank for Foreign Trade of Vietnam in particular and the economy in Vietnam in general • Card market has become more active since Vietnam entered WTO Development opportunities of card services are huge for commercial banks in general and Vietcombank in particular Therefore it is necessary to determine long-term development strategies and diversify its card products • 73 73 • • • • • References References in Vietnamese: Commercial bank - Lê Thành Trung- Đà Lạt university , 2000 Thesis of credit bank at Eximbank, Nguyen Thi Phuong, 2010 Some marketing solution to enhance retail turnover of bank card in Viet Nam, Nguyen Mai Phuong, 15th November 2013 • Decision no 64/2001/NĐ-CP 20th September, released by government, includes non-cash payment form • Decision no 30/ CP specified in Viet Nam • Decision no 22 QD-NH1 21st February 1994, State bank • Decision no 46/2012/TT-NHNN, 31st December, State bank • Decision no 371/1999/ QD NHNN 19th October 1999 Government of State bank of Viet Nam • Decision no 58/QD-NHNT/QLT, 13rd March 2003 • Financial Statement of VCB Vinh Phuc branch, from 2011 to 2013 • Income Stament of VCB Vinh Phuc branch, from 2011 to 2013 • Report of card issuance of VCB Vinh Phuc from 2011 to 2013 • Report of card revenues of VCB Vinh Phuc from 2011 to 2013 • References in English: • Decision No 20/2007/QĐ-NHNN dated 15 May 2007 of Governor of State Bank about regulation of issuance, payment, use and supply of support services to bankcard activity • Decision no 101/NH-QD, state of bank, July 30, 1991 • Decision no 101/2012/ ND-CP, regulations on non-cash payment • Law of French bank and US bank, Viet Nam bank • Costs savings form electronic payments and ATMS in Europe, Federal Reserve Bank of Philadelphia • Principles of marketing, Philip Kotler, 1999 • Law of the US’s bank • Law of French’s bank • • • • 74 Website: website: www.vietcombank.com/ personal/card 74 • • • official website of VCB: www.vietcombank.com Website of State Bank http://www.sbv.gov.vn And other documents as well as reports from VCB, Vinh Phuc branch in period of years (2011-2013) • • • • • • • • • • • • • • 75 75 • • • • • • • • • • • • • • • • • • • Appendix Detailed organization structure of VCB, Vinh Phuc branch THE BANK KHỐI FRONT OFFICE KHỐI BACK OFFICE P Thanh toán quốc tế & Kinh doanh dịch vụ Phịng Kế tốn PGD Phúc n Phịng Hành nhân PGD Hà Tiên Tổ Tổng hợp PGD Thổ Tang Tổ Kiểm tra giám sát tuân thủ PGD Yên Lạc Phòng Khách hàng Phịng Khách hàng thể nhân • • • • • • Phòng Ngân (Source: report of VCB’s overview, Vinh Phuc branch) quỹ Phịng Quản lý nợ • 76 CÁC PHÒNG GIAO DỊCH 76 PGD Vĩnh Yên ... teller machine ATMs: Automatic teller machine POS: point of sale Vietcombank: Commercial bank for foreign trade of Viet Nam VCB: Vietcombank, Vinh Phuc branch VND: Vietnam dong • 5 • LIST OF TABLE... 2: THE STUDY 2.1 Subject of the study 2.1.1 Overview of Vietcombank, Vinh Phuc branch The bank for foreign trade of Viet Nam is known as Vietcombank (VCB), which was issued business license no... before • 1.24 • • 9.9 tax • (Source: Income Statement of Vietcombank, Vinh Phuc branch) • • The table illustrates the operating result in Vietcombank from 2011 to 2013 It reveals the rise of total