Strengthening card issuance and boosting income from card activities at joint stock commercial bank for foreign trade of vietnam

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - NGUYỄN DUY ĐỨC STRENGTHENING CARD ISSUANCE AND BOOSTING INCOME FROM CARD ACTIVITIES AT JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM TĂNG CƯỜNG CÔNG TÁC PHÁT HÀNH THẺ VÀ TĂNG THU TỪ HOẠT ĐỘNG THẺ NGÂN HÀNG TMCP NGOẠI THƯƠNG VIỆT NAM LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2020 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - NGUYỄN DUY ĐỨC STRENGTHENING CARD ISSUANCE AND BOOSTING INCOME FROM CARD ACTIVITIES AT JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM TĂNG CƯỜNG CÔNG TÁC PHÁT HÀNH THẺ VÀ TĂNG THU TỪ HOẠT ĐỘNG THẺ NGÂN HÀNG TMCP NGOẠI THƯƠNG VIỆT NAM Chuyên ngành: Quản trị kinh doanh Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: TS PHẠM VĂN HỒNG HÀ NỘI - 2020 DECLARATION The author confirms that the research outcome in the thesis is the result of author’s independent work during study and research period and it is not yet published in other’s research and article The other’s research result and documentation (extraction, table, figure, formula, and other document) used in the thesis are cited properly and the permission (if required) is given The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business and Management, and the laws for above-mentioned declaration Date………………………… INDEX INDEX i LIST OF TABLES iv LIST OF DIAGRAMS, DRAWINGS v INTRODUCTION 1 Rationale Research objectives 2.1 General objectives 2.2 Specific objectives Research questions Objects and scope of the research Research methodology 5.1 Data collection methods 5.2 Data analysis methods Research structure CHAPTER 1: THEORETICAL BASIS FOR CARD ISSUANCE AND BUSINESS AT COMMERCIAL BANKS 1.1 Card service of the commercial banks 1.1.1 Definition of card service 1.1.2 Classification of card services 1.1.3 Characteristics of card services 1.1.4 Significance of card service 1.2 Issuing and trading card services at commercial banks 1.2.1 Card issuing proccedures 1.2.2 Card service business activities at commercial banks 10 1.3 Factors influencing card issuance and business activities 18 1.3.1 Subjective factor 18 1.3.2 Objective factor 20 i CHAPTER 2: ACTUAL SITUATION OF CARD ISSUANCE AND BUSINESS ACTIVITIES AT VIETCOMBANK NAM 23 2.1 About Joint Stock Commercial Bank for Foreign Trade of Vietnam 23 2.1.1 Formation and development history 23 2.1.2 Function and misson 24 2.1.3 Business results 25 2.1.4 Card service business results 27 2.2 Analysis of the actual situation of card issuance and business at Vietcombank30 2.2.1 Card issuance activities at Vietcombank 30 2.2.2 Card payment activities at Vietcombank 32 2.2.3 Risks and risk management activities 35 2.2.4 Marketing activities and customer services 41 2.2.5 Technology system investment 44 2.3 Analysis of factors affecting card issuance and trading at Joint Stock Commercial Bank for Foreign Trade of Vietnam 46 2.3.1 Subjective factor analysis 46 2.3.2 Analysis of objective factors 52 2.4 Evaluation of card issuance and trading activities at Joint Stock Commercial Bank for Foreign Trade of Vietnam 55 2.4.1 Achievements 55 2.4.2 Limitation 56 2.4.3 Cause of the limitations 57 CHAPTER 3: SOLUTIONS TO STRENGTHEN CARD ISSUANCE AND BOOST INCOME FROM CARD ACTIVITIES AT VIETCOMBANK 59 3.1 Orientations and objectives of card business development at Joint Stock Commercial Bank for Foreign Trade of Vietnam 59 3.2 Some solutions to enhance card issuance and increase card revenue at Vietnam Joint Stock Commercial Bank for Foreign Trade of Vietnam 60 3.2.1 Completing distribution channel system 60 ii 3.2.2 Strengthen the prevention of card service risks, especially in card counterfeiting 62 3.2.3 Technology investment 64 3.2.4 Diversify products, develop separate card product lines for each customer segment 66 3.2.5 Improve the quality of human resources 67 3.2.6 Solutions to increase revenue from card services 68 3.3 Recommendations 69 3.3.1 Recommendations to the Government 69 3.3.2 Recommendations to the State Bank of Vietnam 70 3.3.3 Recommendations to Vietnam Bank Card Association 71 CONCLUSION 73 REFERENCES 74 APPENDIX Appendix 1: Card issuance procedures at Vietcombank Appendix 2: Card payment procedures at Vietcombank iii LIST OF TABLES Table 2.1: Business results of Vietcombank 25 Table 2.2: Sales of card services by types of card 28 Table 2.3: Revenue from card services by activities 29 Table 2.4: Card issuance results at Vietcombank 30 Table 2.5: Revenue from card payment at Vietcombank 33 Table 2.6: Risks on card counterfeiting Vietcombank 35 Table 2.7: Card fraud risk management instruments 38 Table 2.8: Risk Provision Fund for card business at Vietcombank 40 Table 2.9: Card service marketing activities 41 Table 2.10 Vietcombank’s customer policies 43 Table 2.11 Technology infrastructure for card business at Vietcombank 45 Table 2.12: Brand value of Vietcombank 47 Table 2.13: Vietcombank’s human resources 50 Table 2.14: Some training activities for staffs involving in card operation at Vietcombank 51 iv LIST OF DIAGRAMS, DRAWINGS Hình 1.1: Quy trình phát hành thẻ Hình 1.2: Quy trình tốn thẻ 12 Biểu đồ 2.1 Năng lực tài Vietcombank 48 Biểu đồ 2.2: Hệ thống máy ATM, POS Vietcombank 49 v INTRODUCTION Rationale Card is a multifunctional personal financial product based on the application of modern information technology, bringing many benefits to customers Card service contributes positively to improving the civilization of payment, increasing the competitiveness for the banks With the flexibility and utility that card services bring to all stakeholders, bank cards have been created, changing the ways of spending, transactions of social community and increasingly affirming the position in the business activities of commercial banks Therefore, strengthening the issuance and boosting income from card activities is indispensable and objective to the global integration trend; contributing to implementation of diversification of services and modernization of banking technology in the process of integration into the region and the world Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) is one of the leading commercial banks in Vietnam with a wide network of branches covering the whole country Being aware of the benefits that card operation brings to the bank, over the years, Vietcombank has been promoting the issuance, attracting card users, increasing the revenue of card services among all branches in Vietcombank system As one of the commercial banks that started to provide card services quite early compared to other banks, Vietcombank has obtained many positive results in the service business, particularly as follows: the number of customers using cards at the bank has been constantly increasing with 33,213 customers in 2018 (an increase of 21% compared to 2017); Income from card services at Vietcombank in 2018 reached VND 1,598 billion (an increase of 57.75% compared to 2017 and completed 112% of the assigned plan) However, besides above achievements, the card issuance and business activities at Vietcombank still have many limitations that need to be overcome In the evaluation report of the Card department at Vietcombank, it is pointed out that customers mainly use cards at the bank to withdraw cash from branches or ATMs; Sales from goods and services at small merchants are not commensurate with the market potential International card users are mainly business people who want to go abroad and tourists This has not met the desire of the bank's Board of Directors on creating a modern non-cash payment instrument to bring convenience to customers, reducing cash circulation This situation requires Vietcombank to promote marketing, advertising and propaganda about card services so that customers know and be more aware of the utilities that card services bring, from which helping the branch develop proper business plans for its card products and services, creating important conditions in promoting card issuance and increasing revenue from the bank's card services From above situation, the author chose the topic “Strengthening card issuance and boosting income from card activities at Vietcombank” as the master thesis Research objectives 2.1 General objectives The overall objective of the research is to find solutions to enhance card issuance and increase revenue from card activities at Vietcombank, from which contributing to improving the efficiency of business operations of the bank 2.2 Specific objectives - Systemize the theoretical basis for card issuance and business activities at the commercial banks - Analyze the status of card issuance and business at Vietcombank - Propose solutions to enhance card issuance and increase revenue from card activities at Vietcombank Research questions - What is the content of card issuance and business services at commercial banks? - What is the actual status of card issuance and business activities at Vietcombank? - What are the measures for Vietcombank to enhance issuing activities and increase revenue from card services? Objects and scope of the research - Objects of the research: Card issuance and business activities at commercial banks card payment activities, it has created conditions for foreign frauds to steal Cardholder's information to take advantage of self-seeking Especially, today with modern development technology, the phenomenon of "skimming" (stealing card data) and "fishing" (deceiving personal information) is increasingly popular Therefore, Vietcombank should take measures to limit risks such as: - Strictly follow the regulations of international card organization on issuance, payment and regulations relating to risk management and control; Good use of risk control tools such as the installation and maintenance of security devices at places where cards are accepted - Pay attention to the card payment operations for the merchants, especially how to identify fake cards; Actively coordinate with the banks to promptly notify the fraud cases and regularly arrange discussions for employees to exchange experience in risk management and control - Vietcombank can buy insurance for card operations (if any), preferably the Bank should increase the risk provisioning rate to be able to actively compensate for risks arising from card operations Besides, ATM is one of the places with many potential risks when customers use the card, to minimize risks arising from Vietcombank ATMs, the Bank can apply the following solutions.: - Put anti-peeping mirrors from the back: Vietcombank should design the place where the mirrors reflect the space behind the cardholder's back so that when the cardholder is dealing at ATMs, he can still see the back, avoiding the case of crooks peeking at passwords while standing near - Set up card readers: The banks should install ATMs with special-shaped card readers, combined with flashing lights when strange devices are attached, making it easy for customers to recognize during the transaction process - Equip with advanced infrared technology for identification of burglary devices: When equipped with this technology, ATMs will notify the center when any strange device is attached, normally camcorders recording close view of customer inputting pin Since then, the card fraud management team of Vietcombank will have a 63 timely and appropriate solution - Installation of keyboard cover: At ATMs, at transaction counters, or at card acceptance units managed by Vietcombank, when cardholders enter pin numbers to conduct transactions, they must be shielded with their hands so that the crook cannot watch - Vietcombank should consider investing in installing smart sensors and dual locking mechanisms, safe hatches at ATMs managed by each branch These devices will help detecting frauds When incidents or unusual transactions occur, or unlicensed transactions, the ATM will notify the center At the same time, the doors like the cash dispensing door and the card receiving door will close automatically - Installation of double locking system for the payment department: To avoid the money trap, when money is swallowed, the ATM will automatically lock the door to spend money over and over, the money that the ATM will swallow will be in one separate compartment Replace the type of reinforced safes that prevent new forms of attacks, or use solutions to monitor alarms and network systems In the event of a failure the safes will lock up with an internal locking system, and an alarm will sound and notify the center The above are just short-term solutions due to the increasingly complicated economic developments as well as the increasingly modern technological development Therefore, Vietcombank needs to make efforts to research to find new measures suitable to the economic and technological development situation 3.2.3 Technology investment Along with the development of IT today, modernizing banking technology is both an indispensable and objective trend and a requirement of the Bank Technology is one of the decisive factors in winning the competition If any bank captures advanced technology, it is a secret to help it compete successfully in the market Currently, all computer systems for payment at Vietcombank Temenos use GLOBUS software to process daily transactions via the Internet and LAN However, with the increasing speed of payment and card transactions, the current technology has gradually failed to meet the needs of customers The investment in modern equipment 64 and technology innovation is not only to meet the current payment needs of Vietcombank but also to meet the needs of developing modern banking products and services in the future In order to better serve card business, in the coming time, Vietcombank needs to pay more attention in connecting the card payment system more and more suitable with payment network of Viettinbank and other banks in the card alliance; Striving to bring the compatibility between card management software and Bank management software, upgrading the internal payment line of Vietcombank to facilitate card transactions with customers quickly, accurately, avoid unfortunate mistakes In parallel with the upgrading of technology in payment, in the coming time, Vietcombank also needs to pay attention to expanding the card payment network, installing more ATMs and POS nationwide throughout the country to better serve the card usage of the customers, and enhance the utility of VCB Connect24 card Increasing the safety of customer transactions, avoiding cardholders being taken advantage of by thieves to steal money in their accounts by installing cameras at ATMs, minimizing risks in the process of payment by card, creating a comfortable mind, peace of mind for customersg Using the card in payment has some troubles such as setting a limit for withdrawing money via the machine Vietcombank's special-class visa card also provides a one-day maximum withdrawal limit for a card of VND 50 million If you want to withdraw more, you must contact the bank directly Meanwhile, it is not possible to withdraw VND 20 million at a time but VND million at a time With a few tens of millions of dollars, the operation and time taken on the machine is very long, can affect customer satisfaction Therefore, in the future, Vietcombank should focus on this issue, creating more withdrawal limits, to satisfy the needs of customers with large transaction needs The Bank should continue to develop card utilities, through the following forms: associated cards, multi-purpose cards to optimize the card's uses Multi-function card allows to perform transactions both at home and abroad) with the function of managing all accounts at the bank (savings accounts, deposits, loans, etc.), storing 65 personal information important as social insurance, health insurance, blood type, medical history, With such modern features, certainly the payment card will find a firm foothold in the market In order to that, the card business banks in general and Vietcombank in particular need to increase technology investment, import more existing equipment, apply advanced foreign technology, and promote maximizing the potential of the management software being used, as well as promoting the installation of new and more modern technologies Science and technology is constantly developing, only after a short time, technology becomes obsolete Therefore, it is necessary to determine the business objectives, market objectives and strategies to realize them, investing in the necessary technology The costs of new technology can include the costs of licensing, installation as well as annual maintenance costs, and when new technology is available, it is necessary to take full advantage of productivity to recover capital, creating conditions for the next equipment more modern than the previous one 3.2.4 Diversify products, develop separate card product lines for each customer segment Following the development trend of the world economy in general and the card business in particular, in the coming time, it is significant to research and find partners and offer new, local, convenient and suitable products to customers' increasing demands for card services.: - Prepaid card: In addition to general advantages of the card such as making transactions at ATM, POS and online payment within the country or internationally; cardholders enjoy the accompanying services such as premium points insurance program at satellite merchants, prepaid cardholders not have to open accounts at the bank, they can use them as gifts, meeting the needs of customers who are not legally able to issue other card products (under 18 years) - Develop a number of premium card products (platinum series) for luxury customers with added features such as insurance, reward program, loyalty program, VIP customers and other incentives in addition to the basic features are withdrawals and spending on goods and services 66 - Researching implementation of card payment services via mobile phone (mobile payment) contributes to providing customers with a new payment method that is safe, fast and convenient - Deploying centralized statement payment, accordingly, cardholders can pay statements on all transaction channels of Vietcombank such as at transaction counters, at ATMs, via Internet, thereby bringing convenience for customers After payment, the cardholder's credit limit is immediately restored, while the branch does not have to push the payment statement daily, thereby improving the efficiency of card use for customers, reducing the workload for card officers at the branch 3.2.5 Improve the quality of human resources Human resource is the decisive factor for success in all business activities, so in the coming time, Vietcombank needs to pay more attention to this issue, the recommendations that need to be implemented at the bank are as follows: First of all, it is necessary to strengthen the card staffs to suit the development of card business in the bank In fact, during the operation process, Vietcombank realized that the number of staff serving card payment at branches was small, sometimes the staffs are located from another department So strong human resouce is an essetial requiremnt for the bank It is needed to have a training strategy based on the defined plans Regarding the training content, attention should be paid to both economic knowledge and professional skills, while paying special attention to the management of ideological and professional ethical education in order to develop Highly specialized qualified staffs, meeting all the requirements of modern card business The employees must cultivate their own knowledge to adapt to the development of the world economy in general as well as the development of card technology The bank staffs need to be well trained to be able to synthesize three communication skills when speaking as well as when listening Every banker must be a good seller, that is, listening and assessing customer needs, evoking hidden needs of customers 67 Training qualified staffs to meet the fastest, most effective customer requirements Organize competitions among the members of card operation departments to encourage creativity and continuously strive to achieve achievements voluntarily and with a sense of responsibility Organize a reasonable and rational recruitment process for new employees to select young and capable employees to meet the requirements arising in the new conditions and periodically open short-term training courses to improve professional skills for the staffs Regularly popularize information technology knowledge and advanced banking products and services for all levels, especially leaders, to train key staffs knowledgeable about banking operations 3.2.6 Solutions to increase revenue from card services In the card business market, customers play a leading role in the development and increase of banking services Therefore, marketing activities aiming to expand the market are extremely important in the process of professional development, increasing revenue from card business of banks in general and Vietcombank in particular In card business, in order to increase revenue from the service, Vietcombank needs to consider a number of issues in the card issuance and payment operation process, simplify the paperwork, create conditions for customers when they come to the bank for doing transaction The bank should find ways to offer customers with the best card services, creating a comfortable mind for customers when they come to the bank for doing transaction, reassure the customers’ concerns of risk, ensure security during customers’ card using build customers’ trust The Bank can also carry out promotions or accompanying services to increase its competitiveness with other banks, continue to promote the benefits that customers are experiencing from the card services of Vietcombank, devise new programs aimed at the psychology of the people who always want to use cheap goods, promotion goods with high quality 68 In order to attract more and more customers to contribute to increasing service revenue, the Bank needs to actively promote its image on the media, radio, newspapers, the Internet with exclusive promotional content Vietcombank needs to make more efforts in reaching customers instead of waiting for customers to come to them To this well, Vietcombank units need to set up a market survey team in order to exploit potential customers in the area and surrounding areas, interact directly with customers to capture their needs, thereby explaining their questions, creating customers’ senses of trust and comfort 3.3 Recommendations 3.3.1 Recommendations to the Government 3.3.1.1 Promulgate a system of legal documents to protect the rights of entities involved in card payment The Government should promulgate legal documents soon to protect the legal rights of card business banks, merchants and cardholders, creating a basis for law enforcement and judicial authorities to impeach and judge criminal organizations with counterfeit payment cards as well as individuals who commit frauds and use illegal cards to appropriate other people's property Currently, frauds through credit cards have appeared in Vietnam, this is a new type of crime which is very sophisticated and clever To handle this problem, the Government needs to continue promoting the development of laws and sub-laws on economy, supplementing the existing laws and at the same time, imposing penalties for crimes related to cards such as manufacturing, consuming and using fake cards, stealing codes 3.3.1.2 Technical and infrastructure investment Technical and infrastructure investment to modernize banking technology is not only a problem for the banking industry but also for the whole country, in line with the country's economic development strategy Therefore, the State needs to invest in this field so that Vietnamese banks can modernize technology and keep pace with other countries in the world In particular, in the field of Bank cards, currently to participate in card business, Vietnamese banks have to import modern machinery, equipment, 69 software used in card technology from abroad Meanwhile, the Government has not paid much attention to the investment support shown by the high taxation policies on equipment and software used in card technology This makes the bank's investment cost even higher So in the coming time, the Government should encourage banks to invest in technology and infrastructure by reducing import tax on these goods Another problem is that the current communication line is unstable, the congestion problem often happens together with the high cost of the communication system, which greatly affects the efficiency of the results of card issuance and payment activities Therefore, in the coming time, the Government needs to invest in upgrading and developing telecommunication networks to reduce congestion and reduce costs for the bank 3.3.2 Recommendations to the State Bank of Vietnam Complete the legal documents on the card In order to develop card issuance and payment activities in Vietnam, a synchronized and stable legal corridor is required for this activity Currently, the current legal documents related to the card operations of the banks are still for general guidance, Vietnamese banks must rely on the operational guidelines of international credit institutions without any regulations specifically applied in Vietnam; Besides, there is also an inadequacy between the bank's card business and the current foreign exchange management regime as mentioned above, causing confusion for banks in general and Vietcombank in particular in card business strategic planning Therefore, the State Bank should soon supplement the legal documents specifying how to perform bank card operations, amending and supplementing legal documents related to cards, to avoid conflicts with the State's current foreign exchange management regime Establish an interbank payment center on card issues Currently, in the card payment market, there are card switching organizations, including Smartlink, BanknetVn, VNBC, and ANZ-Sacombank Each switching system has its own rules, payment rules, and utilities and a separate payment network for card products issued by a union bank As such, this is consistent with the capital, technology, and business functions of each bank But the fact also shows that 70 restrictions when domestic cards issued by this union bank are not accepted for payment at a bank other than the union Therefore, it is necessary to set up a central bank for card payment This center is the focal point for processing licensing and payment transactions to check card transactions of commercial banks without having to go through payment centers of international card associations, ensuring the acceptance of payment of all types of cards Other bank release system Interbank payment center for card issuance will accelerate payment speed, solve the problem of exchange rate difference, unified payment currency, the cost of payment between banks creates a healthy competitive environment in card business In addition, through this hub, banks will be updated with information about counterfeit, stolen and misplaced cards, thereby limiting risks for banks 3.3.3 Recommendations to Vietnam Bank Card Association The Vietnam Bank Card Association was established on the basis of ensuring a favorable condition for banks to participate in the competitive card market in a healthy manner But the card market is becoming more and more active, the competition is fierce and there are many potential risks Therefore, in order for the card market to develop healthily, banks to conduct effective card business, the Vietnam Card Association should further promote its activities such as:: Organize propaganda to the public on utility cards, improve people's awareness about non-cash payment activities; Establish a framework agreement for the price policy in card activities, reducing competition with discounts, free of charge causing bad image to the bank's card brand Actively open training courses, gaining experience in card payment and card issuance operations for members, better completing the card's operation process In addition, the the Bank Card Association must be the core to continue leading the way in improving the mode of operation Recently, the Association has frequently worked with the State Bank and maintained close relationships with international card organizations to facilitate and further promote card business development in Vietnam 71 The Bank Card Association should stand out to gather member banks to share information about card business activities, together build warning lists (Blacklist) to coordinate together to prevent and limit risks ro The Vietnam Bank Card Association should promote its role as a focal point for studying and issuing regulations for member banks in sharing information on card business activities, together developing warning lists ( Blacklist), coordinating action in preventing card fraud In addition, regular training courses to improve the qualifications of member banks' staff to raise awareness of risk prevention in this area 72 CONCLUSION Investment in card business is an indispensable orientation and trend of commercial banks in the modern economy Over the past years, along with the process of development, international economic integration, Vietnamese financial enterprises, especially banks, have gradually implemented card business activities In addition to the undeniable advantages such as the benefits for cardholders, the card market also attracts idle capital from the population, provides short-term credits, reduces the amount of cash circulation in the international economy This research on: “Strengthening card issuance and boosting income from card activities at Vietcombank” has helped to handle below matters: - Systematize a number of general issues regarding card issuance and card business at commercial banks Presentation of contents in card issuing and payment activities and factors affecting card business activities of commercial banks - Research results of Vietcombank's card issuance and card business show that Vietcombank's achievements in card business are not commensurate with the development potential of the market and Vietcombank - Provide practical solutions to enhance the issuance and increase revenue from card business at Vietcombank At the same time, the thesis also proposes a number of recommendations to create a favorable environment for card business activities in Vietnam in general and at Vietcombank in particular Although many research efforts have been made, the costs of card business at Vietcombank have not yet been determined in detail as well as the amount of benefits gained from card activities for business activities has been quantified Other causes of the bank have not yet calculated the exact profit as well as the actual contribution from the card business to the bank's profits, so the thesis cannot avoid mistakes Therefore, I hope to receive the comments from teachers, experts in this field to continue to improve the topic 73 REFERENCES Tran Linh Chi (2013), Development of card business activities at commercial banks, master's thesis in National Economics University Frederic S Morgankin (1995), Monetary - Banking and Financial Markets, Science and Technology Publishing House, Hanoi The State Bank of Vietnam (2007), Regulations on card issuance, use and payment issued under the Decision No 20/2007/QD-NHNN of the Governor of the State Bank of Vietnam, Hanoi Joint Stock Commercial Bank for Foreign Trade of Vietnam (2019), Summary report on card business activity - Achievements and Strategy for 2016-2018 of Joint Stock Commercial Bank for Foreign Trade of Vietnam Joint Stock Commercial Bank for Foreign Trade of Vietnam (2019), Report on development trend of payment services in the world and development orientation of Vietcombank Joint Stock Commercial Bank for Foreign Trade of Vietnam (2019), Business process for card issuance, use and payment Peter S Rose (2001), Commercial Banking Administration, Finance Publishing House, Hanoi Nguyen Huu Tai (2007), Theory of Finance - Monetary, Statistical Publishing House, Hanoi Nguyen Thi Thu Thao (2005), International payment operation, Finance Publishing House, Hanoi 10 Hoang Tuan Linh (2003), Solutions to develop card services at Vietnamese commercial banks, doctoral thesis on economics 11 Tran Nguyen Linh (2013), Basic theory of card payment activities at commercial banks, https://voer.edu.vn/profile/288 Le Van Tu (2003), Commercial Banking, Statistics Publisher, Hanoi 74 APPENDIX Appendix 1: Card issuance procedures at Vietcombank Step Responsibility Customers Procedures Register card identification and necessary documents Vietcombank Branches Dicuss and sign in the contracts Vietcombank Branches Transfer the list of card identifiers to the card center Card center Issue card, activate card and return card to the card center Vietcombank Branches Hand over the card to the customer, collecting card issuance fee (Source: data provided by Vietcombank’s card center) Step 1: Customers come to Vietcombank branches to apply for card issuance, register for card identification and submit a copy of ID card or other necessary documents Step 2: After receiving the card identification registration form from the customer, Vietcombank shall check whether the customer has an account at the bank or not? (i) For customers who have accounts with Vietcombank, save the registration form according to the customers’ account; (ii) For customers who not have accounts, the bank will open accounts for the customers before saving the application Step 3: Vietcombank branches collect the list of card issuers and send the list to the bank's card center Step 4: Based on the list sent by card issuing branches, Vietcombank Card Center is responsible for issuing cards in accordance with regulations After issuance, the Card Center is responsible to return to the customers Step 5: After receiving the card from the Card Center: (i) Transactors are responsible for contacting customers, inviting customers to receive cards Card delivery procedures are in accordance with the current regulations of Vietcombank applied to the whole system; (ii) Transactors are responsible for requesting customers to fill out information and sign the confirmation of receipt of the card; (iii) Transactor provides account number, card number, card manual, etc for customers to use Appendix 2: Card payment procedures at Vietcombank Step Responsibiltiy Customer Procedure Apply for card issuance at the bank Vietcombank Provide card and notify the merchants Customer Pay for goods, services or withdraw cash at the ATMs Merchants Submit receipts to the Bank để đòi tiền Vietcombank Pay to the merchants that accept the card (Source: data provided by Vietcombank’s Card Center ) Step 1: Customers are units and individuals who come to Vietcombank or Vietcombank Branches to apply for card issuance Step 2: Vietcombank provides cards to users and notifies merchants Step 3: Customers use the card to pay for goods or services or withdraw money at ATMs in ATM system and Point of Sale (POS) of Vietcombank and other banks in card alliance nationwide Step 4: Within 10 days after performing card transactions, the merchant submits the receipt to Vietcombank to claim for goods and services it has sold Step 5: Within day after receiving the receipt, Vietcombank pays the merchants ... SITUATION OF CARD ISSUANCE AND BUSINESS ACTIVITIES AT VIETCOMBANK NAM 2.1 About Joint Stock Commercial Bank for Foreign Trade of Vietnam 2.1.1 Formation and development history JSC Bank for Foreign. .. development at Joint Stock Commercial Bank for Foreign Trade of Vietnam 59 3.2 Some solutions to enhance card issuance and increase card revenue at Vietnam Joint Stock Commercial Bank for Foreign. .. research: Card issuance and business activities at commercial banks - Scope of the research + About destination: Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) + About time: Data