New technology in the digital age: Vietcombank drives contactless card use amid COVID-19
Vietcombank is one of the first and leading banks in Vietnam to issue and support existing cardholders to convert from magnetic stripe to contactless chip cards May 17, 2022 | VietcombankA chip card has an embedded microchip that replaces the traditional magnetic stripe used to store and secure information. A microchip is relatively more “intelligent” and tamper-proof than magnetic stripe. It helps reduce fake and fraudulent transactions by allowing only the issuing bank to write and read the data on the card. Each transaction will have its own authentication code, ensuring that data is not stolen to forge card transactions. At the same time, the card uses contactless near field communication (NFC) technology that does not require the cardholder to swipe the card, but by scanning or waving it in front of the payment device at the cashier. Chip cards with integrated contactless payment technology have now become popular with consumers and will replace magnetic stripes over time. The product allows customers to transact by tapping or waving the card over the point of sale (POS) device. Customers can use their cards without swiping it on a card reader or to enter the card PIN. Compared with magnetic stripe cards, contactless chip cards bring many benefits to customers and merchants in terms of fast processing speed, convenience in transactions and card security. Currently, contactless chip card technology has been widely used in the world, especially in developed countries. In a survey on consumer payment attitudes conducted by international payment company, Visa, up to 40% of Visa card transactions outside of the US are contactless. In Canada, contactless payments make up 70% of transactions under $40 while in Costa Rica, it is even higher at 80%. Poland is ...
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