LUẬN văn THẠC sĩ GIẢI PHÁP PHÁT TRIỂN DỊCH vụ THẺ THANH TOÁN tại NGÂN HÀNG BIDV CHI NHÁNH hà nội e

THESIS MBA
TOPIC

SOLUTION OF PAYMENT CARD SERVICES
DEVELOPMENT IN BANK FOR INVESTMENT AND
DEVELOPMENT OF VIETNAM - HANOI BRANCH


REPRESENTATIONS
The project “Solution of payment card services development in Bank for
Investment and Development of Vietnam - Hanoi branch” is my own research.

The data and results of the project are my own collection and using my knowledge
and discuss with our instructors to complete this project.


CONTENTS
REPRESENTATIONS.................................................................................................................... 2
MỤC LỤC....................................................................................................................................... 3
INTRODUCTION.......................................................................................................................... 8
1. Urgency of topics:.................................................................................................................. 8
2. The research objectives...................................................................................................... 9
3. Research Object and Scope................................................................................................ 9
4. Research Methodology:....................................................................................................... 9
5. Time.......................................................................................................................................... 9
6. Outline details..................................................................................................................... 10
1.1 Products and product development to satisfy customer needs.......................11
1.1.1 The product concept:............................................................................................................... 11
1.1.2 Products development to satisfy customer needs........................................................12
1.2.The bank cards and card services..............................................................................13
1.2.1. Bank card..................................................................................................................................... 13

1.2.1.1 The concept of bank cards:................................................................................................ 13
1.2.1.2 Characteristics of bank card.............................................................................................. 14
1.2.1.3 Classification of card............................................................................................................. 15
1.2.1.4 The process of development of bank card...................................................................17
.2.1.5 The components involved business cards......................................................................20
1.2.1.6 Role of card services in the socio-economic development....................................21
1.2.2 Services, Utility of bank cards............................................................................................... 24
1.2.2.1 ATM Cards, Debit Card......................................................................................................... 24
1.2.2.2.The VISA credit....................................................................................................................... 24
1.2.2.3. Income from business card............................................................................................... 25
1.2.2.4. The cost of business cards................................................................................................. 26
1.3 The process of issuing bank card...............................................................................27
1.3.1 The process of issuing card................................................................................................... 27
1.3.2 Payment Card Process............................................................................................................. 29
1.4. Factors affecting the card service quality...............................................................30
1.4.1 Factors belong to the bank..................................................................................................... 30
1.4.2. Factors outside bank............................................................................................................... 31
1.5 Risk in Business Card..................................................................................................... 33
1.6. Research methods.......................................................................................................... 33
1.6.1 Source of Data............................................................................................................................. 34
1.6.3 Method of data analysis.......................................................................................................... 36


2.1 Introduction to BIDV - The process of formation and development of the
Bank for Investment and Development of Vietnam (BIDV)......................................37
2.2 Introduction of BIDV Hanoi.......................................................................................... 37
2.2.1 History and development of BIDV Hanoi.........................................................................37
2.2.2. Business activities of BIDV Hanoi...................................................................................... 41
2.2.2.1. Operational funding............................................................................................................. 41
2.2.2.2. Credit activities...................................................................................................................... 43

2.3. Situation Analysis Services of bank card in BIDV Hanoi....................................44
2.3.1. Introduction................................................................................................................................ 44
2.3.2 Current status of issuing BIDV Hanoi................................................................................ 45
2.3.2.1. The cards issued by BIDV.................................................................................................. 45
2.3.2.3 BIDV’s VISA Card................................................................................................................... 46
2.3.2.4 Status of payment card operations................................................................................. 49
2.3.4 Analysis results of card business......................................................................................... 50
2.5. SWOT Analysis................................................................................................................. 55
2.6 Competitive Environment Analysis............................................................................60
2.7 Analysis of the level of customer satisfaction.........................................................62
Chapter III: CONCLUSIONS AND COMPREHENSIVE SOLUTION TO COMPLETE
BANK CARD SERVICES IN BIDV HANOI............................................................................. 65
3.1. Complete solution bank card services in BIDV Hanoi.........................................65
3.1.1. Finish card................................................................................................................................... 65
3.1.1.1. Development of new card products............................................................................... 66
3.1.1.2. Goals........................................................................................................................................... 67
3.1.1.3. Develop flexible pricing strategy.................................................................................... 68
3.1.2. Promote and expand distribution channels, relationships with partners.........69
3.1.3. Promote mix promotion........................................................................................................ 71
3.1.3.1. Advertising.............................................................................................................................. 71
3.1.3.2. Public Relations (PR)........................................................................................................... 71
3.2.3.3. Image Promotion, Sale........................................................................................................ 72
3.1.3.4. Personal Sales......................................................................................................................... 72
3.1.3.5. The other method................................................................................................................. 72
3.1.4. Human Resource Development.......................................................................................... 72
3.1.4.1. Recruitment and staffing appropriate..........................................................................73
3.1.4.2. Training to develop qualifications of staff...................................................................73
3.1.4.3. Wage policies, incentives................................................................................................... 74
3.1.5. Strengthening management and risk prevention........................................................74
3.1.6 Recommendations for BIDV.................................................................................................. 76

3.1.6.1 Develop oriented business strategies for total of system:.....................................76
3.1.6.2 Promoting the role of National Financial Switch JSC (BankNet)........................77
3.2.6.3.About issuing documents related to card services...................................................77
3.1.6.4 Standard the transaction and the physical manifestation related to bank card
services..................................................................................................................................................... 78
3.1.6.5. Strengthen network security............................................................................................ 78
3.2. Conclusion....................................................................................................................................... 79
LIST OF REFERENCES.............................................................................................................. 82
REFERENCE IN VIETNAMESE:............................................................................................... 82
REFERENCE IN ENGLISH........................................................................................................ 82


LIST OF ACRONYMS
NHNN
TCTQT
NHPH
NHTT
ĐVCNT
BIDV

The State Bank
International Card Organization

Issuing Bank
Payment Bank
Cards Accepted Unit
Bank for Investment and Development of Vietnam J.S.C

TMCP
ĐT&PT
BIDV HN
TTT
ATM
POS
NHTM
TCVN
IBMB
ACSI

Bank for Investment and Development of Vietnam, Hanoi
Branch
Card Center
Automated Teller Machine
Point Of Sale

Commercial Bank
Vietnamese standards
Internet banking, Mobi banking
American Customer Satisfaction Index


DANH MỤC CÁC BẢNG, BIỂU, SƠ ĐỒ


INTRODUCTION
1. Urgency of topics:

When Vietnam joined in the WTO, integrate with the world economy,

this is an opportunity but also a huge challenge for Vietnamese enterprises
including banking sector. So the domestic banks have to change in all aspects:
HR, science, technology, products and services... In which there is payment card
products.
Currently in the world, the banking cards actually become a means of
non-cash payments which are very popular, not only for the countries with
developed economies but also constantly expanding in developing economies.
Besides, with the development of science and technology, media has made the
card product to take effect in the sale of their goods and services in countries
around the world become convenient and quickly.
That is the reason why we have global brand as VISA,
MASTERCARD..., some of international company of cards are widely known.
At the same time, many banking groups in the world have strong competition in
the issuance and payment, provide significant income in the total income of the
bank.
Development of card services, contributing to reducing the proportion of
cash payments in the economy and bring utilities to the people and for the
service providers. However, current service is not really developed well, not
really bring utilities to the cardholder as well as become a means of non-cash
payment in the popular economy.


From this fact we chose the topic: "Solutıon of payment Card Servıces
development in Bank for investment and development of Vıetnam - Hanoı
Branch” to research in my project
2. The research objectives

- Research rationale of development credit card (VISA) in BIDV Hanoi.
- The problems in the development card services in BIDV Hanoi
- Proposals for the development card services to meet the needs and

satisfaction of customers.
3. Research Object and Scope

- Research Object: Research in development of card services, credit
cards VISA in BIDV Hanoi.
- Research Scope: is the contents of card development in BIDV Hanoi
4. Research Methodology:

- The project uses methods of analysis, synthesis, and matrix studied,
such as product development, marketing management, strategic management...
applications in research topics.
- In addition, the thesis uses quantitative research methods, data
collection questionnaires, interviews, assessment and consultation with experts.
5. Time

August: study rationale
September: Collecting data on the quantity and quality of card products,
October: Write a thesis statement


6. Outline details

Commitment
Table of Contents
The list of figures and tables
Chapter 1: Theoretical basis
Chapter 2: Status of card products development at Banks for investment
and development in Hanoi Branch (BIDV Hanoi)
Chapter 3: Conclusions and Solutions

CHAPTER 1: THEORETİCAL BASİS
1.1 Products and product development to satisfy customer needs

1.1.1 The product concept:
In the process of human development due to labor and production
activities have to convert resources into useful products. All products are
produced to meet the specific needs of people. Thus, the main product is the
output or results of operations of human labor. According to ISO 9000, 2007
Product is defined as "the result of the activity or process." The process may be
producing activities alter physical and chemical properties of the material
increases its value or provide a service to meet the specific interests of the
people. All organizations, businesses, industries, sectors of the national
economy are creating or providing their products to society. According to this
view, the product is widely interpreted, not only is the material specific items
but also includes services.
Today a complete product is produced and circulated in the market has
two components which are the properties of hardware, software or a
combination of them
Hardware products include tangible physical attributes which expresses
in a concrete form, clearly reflects the different value, functionality, utility
engineering, economics of the product.
Software products are intangible factors including the types of services
that provide to clients and other factors such as information, concepts, and
related services...Nguyen Dinh Phan, Dang Ngoc Su 2012.


According to PHILIP Kotler: Products are everything that people can
sell in the market to pay attention, purchase, use or consumption, can satisfy a
desire or need.

1.1.2 Products development to satisfy customer needs
In the tough competitive business environment today, the product
quality to become one of the most important bases of the purchase decisions of
customers so that determination customer, customer's needs and rated
satisfaction to seek the ways to serve them better is especially important for any
business. Customers are prerequisites for every business to survive and grow.
The key of the success in competition is to maintain and develop clients through
continually meet their needs in the best way. So, the task of every business is is
defined who rae thier customer from which to find what should offer and how
better to meet their needs.
The level of satisfaction is a state of feeling derived from a comparison
of the results obtained from the product of the expectations.
Thus, satisfaction is a function of the difference between getting results
and expectations. Clients may feel a degree of satisfaction in the following
three: if the actual results inferior to expectations, the customer will not be
satisfied. If actual future results initiated with expectations, customers will be
satisfied. If the actual results exceeded expectations, the customer is satisfied,
happy and excited. Nguyễn Đình Phan, Đặng Ngọc Sự 2012.
Complaint

Expectation
Perceived value

Perceived quality

Satisfaction

Loyalty

Figure 1.American Customer Satisfaction Index – ACSI
Source: M.D Johnson et.al.Journal of Economic Psychology 22
(2011)217-245
In American Customer Satisfaction Index – ACSI, perceived value is
affected by perceived quality and customer expectations. Meanwhile, customer
expectations have a direct impact on the perceived quality. In fact, the higher the
expectations, maybe the quality standards of customer experience for the
product as high or vice versa. Therefore, requirements for product quality and
service provided to customers and the need to ensure are met on the basis of
their satisfaction. The satisfaction of customers is made on the basis of
perceived quality, expectations and perceived value, if the quality and perceived
value higher expectations will create loyalty with customers, otherwise, there
are no complaints or grievances about the products they consumer.
In this project, the author will analyze the criteria of customer
questionnaires on perceived quality, expectations and perceived value to lead to
customer satisfaction, analyzed by SPSS to provide results and analyze the
questions quantitatively.
Question of the professionals is qualitative to give solutions to improve
quality of service cards.
1.2. The bank cards and card services.

1.2.1. Bank card
1.2.1.1 The concept of bank cards:
Bank cards as a means of non-cash payments, was born from the
purchase method under retail and development associated with the application
of information technology in the banking sector. Bank cards are payment


instruments issued by bank card for customers to use payment for goods or
services within the cash balance or deposit your credit limit granted. Bank cards

are used to perform these services through automated trading system, also
known as self-service ATM system.
According to the "Regulation on issuance and payment using bank cards
" issued together with Decision No. 371/1999 QD / SBV dated 10/19/1999, the
bank card is payment instruments which are issued by the Bank for customers to
use following the contract between bank and cardholder
1.2.1.2 Characteristics of bank card
The current bank cards, most of them are characterized as follows:
The structure: plastic cards, including 3 layers pressed: 2 thin coating on
the outside and in the middle is made of plastic core card.
About shapes and sizes: 4 card corners rounded, the international
standard size: 84mm x 54mm x 0.76mm.
Front of card:
Trademarks of cards
The name and logo of the publisher:
For example: The Master: two circular logo (a red, an orange figure) is
nested in the lower right corner and white text in the middle of Master Cart:


The back of card
Name of
Customer
This card can
with draw money
from ATM

Magnetic
field

1.2.1.3 Classification of card

There are many criteria to classify cards but mostly people use the 2
main methods: Classification according to production technology and classified
according to the nature of the payment card.
If based on the production technology divided into 3 types: embossed
card, magnetic card and smart cards:
Embossed Card: As the cards on the card surface relief necessary
information. Today this little card is used for rudimentary printing process,
prone to counterfeiting which combined with new technologies such as
magnetic stripe, smart card.
Magnetic Card: the card that the cardholder's information has been
embossed on the front of the card has been encoded in the magnetic tape on the
back of the card. This information must be correct and match.
Smart card: This is the latest generation of card having security features
and high safety, based on the technical computing processor, mounted on an
electronic chip card made as a perfect computer. Usually a smart card electronic
chip attached to replace the magnetic stripe of the card. It is also the case with


the smart card chip and electronic tape. The issuance and acceptance of payment
cards only prevalent in developed countries despite international card
organizations still encourage member banks to issue payment cards and to
reduce the risks of counterfeit rate face card.
If based on the nature of the payment can be classify into Credit card
Debit card
Credit card: the method of non-cash payment provides the ability to use
pre-paid expenses later. Banks and financial institutions issuing credit cards to
customers based on the reputation and ability to ensure that each customer pays.
The ability to ensure payments are determined based on criteria such as income,
expenditure status, prestige, availability relationship with financial institutions,
mortgage... clients. When using the card, instead of cash, cardholders present

their cards at the point of supply of goods and services for payment card
acceptance.
Debit card: Like credit cards, debit cards as well as a means of cashless
payment. It allows customers to access their account balances via online
connection to payment for goods or services at Merchants perform transactions
related to accounts at ATMs. The cardholder's spending depends primarily on
the balance in the account
ATM card is the first to develop forms of debit cards, customer cards
allow direct access to bank accounts from automated teller machines.
Cardholders can make many different transactions at ATMs. Along with ATM
cards, ATM system provides customers the ability to use the card after hours
trading, foreign bank offices and self-service capabilities.


Over time, the organization has been active card ATMs connected
together to create a regional ATM network, allowing customers to perform ATM
transactions at many more.
Besides these two credit cards and debit cards mentioned above, a form
of bank cards is becoming increasingly popular is the link tags. Card link is the
product of a bank or financial institution associated with a third party and
common names, trademarks or logos of third parties also appear on the card.
Also available features of a regular bank card, the card can link more attractive
to customers by the additional benefits brought by third parties.
If based on the scope of use of the card in the card can be divided into
domestic and international cards
Domestic Cards are cards by banks, credit institutions issued instead of
cash used to pay for goods and services and cash advances within the country.
İnternational cards are bearing brand of organizations as banks, credit
institutions issuing agent. International Card can be used on a range of domestic
and international, at any merchant or ATM that shows that accept payment

cards. For international card issuance, card-issuing bank must register and be
accepted as a member of international card organizations, adhere to the
regulations in the issuance and payment cards by international organizations
that issue. There are 2 types of international card and debit card International
credit card.
1.2.1.4 The process of development of bank card.
To have products as diverse as today, the bank card sector has gone
through several stages and test development. However, in terms of time, trading
card industry is a relatively new business, the birth and development began in
the early twentieth century until today.


Bank cards are formed in the U.S. from customers buying habits have all
of the retailers on the basis of prestige customers to shop.
In the 1914, Western Union, money transfer organization of U.S the first
time provide his customer special deferred payment services. The company
released the plate containing the information embossed perform two functions:
- Identify and differentiate customers
- Provide and update customer data, including account information and
perform transactions.
Other organizations also recognize the value of this kind of service
above and within a short time then a lot of units, such as railway stations, hotels
and stores throughout the United States has chosen provider deferred service for
its customers. Among them, the American Petroleum Corporation launched the
first gas card in 1924 to allow people to use the card to buy gasoline in stores
nationwide.
Following organizations provide goods and services. The bank entered
the market quickly with a goal card soon after this payment form on the basis of
existing relationships between entities providing goods services across the
country with extensive dealer network of banks. In 1950, Diners Club issued the

first credit card is made of Plastic
After Diners Club, in 1958, American Express Company is also
involved in bank card market and has successfully established its brand name in
this new field. Like its competitors, American Express card development focus
in the field of tourism and entertainment, two fields which have rapid growth in
the U.S. and Europe during the post-war world.


Before 1970, the concept of credit cards have been known to everyone
and received quickly. 1966, Bank of American official authorized his release
BankAmerican card to other banks through agency contracts, beginning in
accelerated phase development services card.
To 1977 card of Bank of American actually accepted globally and
instead of BankAmerican name, name Visa card with characteristic color is
blue, white and yellow.
Also in 1966, three major banking groups eastern United States decided
to establish collaborative business groups own credit, called the Interbank Card
Association. After the Interbank Card Association was changed to MasterCard.
Interbank Card Association issued regulations on licensing transactions,
clearing, Marketing measures, and security issues relating to the law to operate
a job effectively.
In 1968, the Interbank Card Association began business expansion
strategy on a global scale through links with Banco National of Mexico. Then
Interbank Card Association continue to seek partners in the European market
and launched Eurocard cards. Also in 1968, Interbank Card Association
members admit that some Japanese banks to gradually penetrate and capture the
East Asian market.
Thus, the introduction of bank card payment needs and develop
technology -based strategies and replacing cash in circulation. In fact, the bank
card is the inevitable development in the field of banking and finance, and has

been reflected in the development of science and technology and civilized
society. Acquisition and application of the achievements of science and
technology, especially information technology, card systems is more complete
developed. This is a significant success for a new business just a few decades
formation and development.


1.2.1.5 The components involved business cards
The issuance and use of payment cards and domestic bank participation
tight 4 basic components: the card-issuing bank, the bank card payment, card
holders and card-accepting units (CAU). For international card adds a further
component is the international card organizations. Each subject plays an
important role in various maximize liquidity features modern cashless bank
card.
- International Card Organization is the head of all operations and
management of payment cards in our network. This is an association of
financial institutions, large credit -wide network and reach the famous brand
and diversified products such as card organizations Visa, MasterCard card
issuers, card companies American Express, JCB card companies, card company
Diners Club, Mondex company.... International card organizations offer basic
provisions regarding issuance and use of payment cards, play a mediating role
between the organization and the member companies of the adjustment and the
balance amount payments between member companies.
- The issuing bank is issuing banks themselves own branded card or
international card organizations, empowered card companies issue cards
branded by organizations and companies. The issuing bank is the bank named
on the card issued by the bank to show that its product. Issuing Bank specified
terms and conditions of use for the customer card. The Bank has the right to
contract with a third party agent is a bank or a financial institution for credit and
payment card issuing credit. If the name of the agent banks appear on the

customer's card is necessarily agent bank that is a member of the official
organization card or international card companies.
- Bank of Payment: Bank payment is accepted bank cards as a means of
payment by contract accepting the supply of goods and services in the area.


In fact, many banks are just issuing bank has a bank card payments. As
the issuing banks, their customers are also cardholders bank as payment,
customers are entities providing goods and services contracted merchant.
- Cardholders: Cardholders are individuals or authorized person (if
booked by the company is authorized to use) the card -issuing bank, the name
embossed on the card and use the card on the terms and bank specified
conditions. As usual, each primary cardholder may issue supplementary cards,
both primary and supplementary cards and general spending account.
- CAU: The unit providing goods and services contracted accept cards
as a means of payment is card – accepting unit (CAU). Although the bank to
pay a premium rate payment discount given but in return the merchant through
which attracted a large volume of customers, sell more products which
contribute to improving the production efficiency as well as business unit's
profit. Decision No. 371/1999 / QD-SB October 19, 1999
1.2.1.6 Role of card services in the socio-economic development
For the bank
First, the role of active cards for the bank's funding: the debit card, the
card is based on the deposit account opened at the bank, so the number of issued
cards more then some increasing deposit accounts, through which the bank's
capital increased by the same amount. With a credit card it is a type of credit is a
form of investment, but the effect of increasing bank deposits. On the other
hand in issuing regulations, credit card payments, the unit must have a merchant
account at a bank. This is a form of bank funding as the bank has both a bank
release payment.

Second, the role of the card to the credit of the bank: With the form of
credit card, the bank can make loans on certain credit limit, allowing the


cardholder spending limit. Thus the form of credit card issuers, banks expanded
lending activities, particularly consumer loans. These activities and investment
credit safe, fast and effective because the loan is based on reputation or financial
viability of the high cards.
On the other hand to release the customer card you can enter an amount,
or passbook, debentures, bonds usually greater than or equal to limit credit card.
With economic - social:
First, the bank card payment helps mobilize idle capital in the
population, which meet the needs of the economy: Payment by bank card to
facilitate capital raising activities of banks with cheap, this additional capital
banks can use to invest in service business. For example, if a card account has 3
million vnd and we have 3.5 million cards issued, the Bank has mobilized
10,500 billion).
Second, the bank card help payment activities to become safe, fast and
save time: The card has facilitated the payment for goods and services safely
and effectively, accurate, reliable and time -saving, thereby creating public
confidence in the operation of the banking system. Besides, it does not take
money from the shipping cost place to the other to make the payment and
reduce the negative social vices.
Third, to contribute effectively implement national monetary policy:
bank card activity enhances circulation of money in the economy, increase the
rotation of the coin, unfreeze the different flows, creating important condition
for controlling the volume of payment transactions both residential and
economy, thereby paving the way for the calculation of the money supply and
the implementation of monetary policy to be effective....
For customers using cards (also known as card holder):

First, payment cards provide the convenience of paying for goods and
services in both card users in the country at home and abroad: Cards are created
with compact size, thus, cardholders can easily stored and transported
anywhere, anytime without any restrictions on space and geography.
Cardholders can use the card to pay for goods and services at merchant
establishments across the globe with great affordability.
Besides, with payment cards, cardholders can send the local currency
but will be targets of any currency if there is demand, the exchange rate of the
bank without going through the stage of transition exchange.
Second, payment card bring safe transactions: Along with the
convenience of payment cards also provide both the safety of the transaction.
Instead of carrying a large amount of money when traveling on business,
cardholders need only carry a small card as the payment needs can be met, not
inferior payment cash.
Third, payment card helps cardholders save time shopping: When using
the card, the payment will save time for counting money, cash checks when
paying bills with great value. Also, if the card holder to work or travel, you will
not have to carry large amounts with you, or use of checks - each time they need
to go to the bank to cash a check, and if spending not all they have to go back to
the bank to put money back into your account.
Using the card is in place to save time, as soon as the card holder, the
cash needs can be met by immediate automated teller system or through
government banks across the globe.
Fourth, payment card bring civilization: developed country and
developing economies expressed in both procurement method, payment and
consumption of human...

1.2.2 Services, Utility of bank cards.
1.2.2.1 ATM Cards, Debit Card
Recharge: cardholders can load cash directly to your account at the
bank, charging at ATMs, transfer from another bank...
Withdrawal: through the ATM system, the point of money application
Money Transfer: through accounts at any bank, payment of business
transactions, the service bills (electricity, water, telephone...).
Get transfers: from domestic and foreign banks, received salary and
bonus...
Currently most of the cards in the market has put in a number of
extensions as follows: Payment of goods - services: in stores, trade centers,
supermarkets, bookstores, restaurants - Hotels..., direct payment or auto
payment for service such as water, telephone, Internet fee,...; Buying prepaid
cards, payment directly throuht ATM...
With modern technology applied will have more convenience in the
payment card. The trend in the future, the card will become more versatile and
become the only thing to manage all transactions and banking services
1.2.2.2. The VISA credit
Using simple, time-saving, easy shopping anytime, anywhere: With the
card in the compact and simple operation, credit cards BIDV traded tens of
millions of ATM / POS, website with VISA logo is worldwide. Customers can
use the card to go shopping, travel, pay at the supermarket, shops, restaurants,


commercial centers, hotels, resorts... or to place an order online through the
Internet.
High security, maximum risk prevention fake cards: BIDV Precious,
Flexi is one of the most secure credit card nowadays cause it is integrated
magnetic stripe technology and EMV Chip cards (Standard payment smart cards
of 3 the world's largest Alliances are Europay, MasterCard and Visa offer). The

processor in the chip on a card to help protect the information card data,
ensuring secure transactions, security and risk prevention fake cards.

Source: BIDV Hanoi
1.2.2.3. Income from business card
As this is a service, card bank has brought many different income. First
of all,we have to mention the annual fee that must be paid by cardholders using
cards following the contract. The fee for the card number will be large relative
income of the bank. It is said thaht the bank always have benefit from card
transactions.
The second income is relatively stable that the bank earned is from card
accepting unit (CAU). With CAU this is fee for every dollar of revenue comes
from accepting card payments. It is considered as trade discounts. In addition,
customers also pay a non- interest if paid in full according to the statement. Late