- For the majority of people today, the demand for gasoline is very large because in cities and towns, the number of people using vehicles such as cars and motorbikes is high. Spending on gasoline is often small but regular and necessary. Therefore, banks should conduct research to launch other card products such as a small change card service to serve the daily needs of people, which is a gasoline card. Running out of gasoline while on the road but forgetting to bring money or having spent all of it or having to wait for the gas station staff to return the small change is quite inconvenient. Meanwhile, the number of gas stations in the city and on the roads is increasing, the supply of goods and payment takes place in a fixed location, not mobile like the forms of paying for electricity and water, creating conditions for the installation of card payment machines. With the above conditions, the implementation of this small change card service is feasible. The form of this type of card is quite simple, with denominations from small to large, customers load money into the card, when buying gasoline the amount is deducted from the card value through the reader and immediately entered into the account of the gasoline seller at the bank. The problem here is that the bank must research, design the product, invest in the card reader system; coordinate with gasoline companies in signing card payment contracts.
3.2.2.3. Improving the service quality of the ATM system
Along with the personalization and diversification of card products and services, Agribank also needs to focus on improving the convenience and service quality of ATMs. This contributes to bringing satisfaction to consumers with products and services, one of the main goals of product policy. In the coming time, Agribank's Card Management Department needs to research and deploy a number of convenient services:
- Minimize the situation where customers cannot make transactions via ATM
For customers using ATMs, network congestion and interruptions of machines and network systems are the cause of inconvenience and disappointment for customers. Therefore, banks need to regularly check the status of machines, equipment, and transmission lines, ensure the payment system operates stably and smoothly, and implement protection plans to ensure the safety of the ATM system. In addition, banks should arrange staff to be on duty at the ATM system to promptly fix problems that occur, quickly handle customer inquiries and requests, and improve customer service spirit and attitude.
- Advertising on ATM screens
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Advertising on ATMs has been applied in many countries around the world and has brought many successes. Therefore, Agribank can deploy advertising space rental on ATM screens and can proceed in the following two ways:
+ When the ATM is not used: the ATM screen displays advertising screens in standby mode.
+ When the ATM is used: before making a transaction, the customer will have 2 options: if they watch the advertisement, the customer will not have to pay the transaction fee (instead, the transaction fee will be charged to the advertised unit); but if the customer does not watch the advertisement, the customer will have to pay the transaction fee as usual.
By implementing this service, Agribank not only has an additional channel to earn profits from the ATM system but also builds the image of a modern, reputable bank with major business partners.
3.2.3. Solutions for customer care activities
Customer care is a very important part of payment card services. In the current competitive period, attracting customers to card products and services is difficult, retaining them is even more difficult. Customer care is all that is necessary for banks to satisfy the needs and expectations of customers.
First, Agribank needs to complete the customer database, making it convenient for the Card Center staff to quickly look up information related to the cardholder (such as ID number, date of issue, card type, overdraft limit used, etc.). Next, Agribank needs to develop a marketing manual, card usage instructions for customers and continuously update the list of new products and services, new utilities and newly installed ATM/POS systems.
Periodically, Agribank should also conduct surveys and polls to find out the level of satisfaction of payment card products and services, as well as the quality of customer service of employees, thereby making adjustment policies. Customer feedback should be respected and there should be appropriate rewards for valuable feedback.
3.2.4. Solution to expand the system of payment service providers and ATM network
To further improve the quality of card services, expanding the merchant system and ATM network is an urgent requirement for Agribank. The merchant network and ATM are
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The most important condition for the customer payment process to take place quickly and conveniently.
To implement the strategy of expanding the number and types of payment service providers, Agribank needs to increase marketing and promotion activities so that they can see the benefits they receive from accepting card payments from the bank.
Agribank needs to introduce special incentive policies such as reducing discount costs and equipping merchants with modern card payment devices to retain reputable merchants with high and stable card payment turnover. This policy helps the bank maintain the old merchant system while developing the merchant system in terms of quantity and diversifying the types of services. In addition, Agribank should organize card payment training for merchant staff to improve their professional qualifications and create good service quality for customers.
In addition, Agribank needs to deploy additional ATMs at branches, shopping centers, large entertainment centers, markets, etc. and install additional ATMs in limited areas. Furthermore, Agribank must ensure that ATMs operate synchronously with 24/7 capacity to be ready to meet customers' spending needs anytime, anywhere. ATMs must ensure the ability to provide fast and convenient cash withdrawal services. An important requirement for the ATM network is that ATMs must operate according to international standards to be compatible and work well with the ATM systems of other commercial banks.
3.2.5. Human resource development solutions
Service quality depends largely on human quality and management quality. Therefore, to improve the quality of card services, Agribank should pay attention to solving the quality of human resources.
In reality, the number of card sales staff is large but their experience in the card field is very limited. To solve this problem, the Bank needs to have a strategy for training and supplementing human resources, and must always coordinate with the State Bank, international card organizations, and organize training to improve the professional qualifications of card sales staff. Staff must always improve their professional knowledge and grasp customer psychology to provide products that best serve their needs. Agribank should organize regular training sessions at home and abroad so that the professional qualifications of card sales staff are regularly updated and they can learn from other countries' experiences.
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Furthermore, card services are associated with modern equipment, so they require a highly skilled technical staff. Agribank must train a staff with specialized technical skills in card payments, good technical qualifications, and the ability to install, operate, and maintain machinery and equipment systems serving card issuance and payment. In particular, this force must be highly adaptable to the development of information technology and international economic integration.
In addition to improving professional quality, Agribank must focus on training professional ethics for card business staff to limit fraud risks in card issuance and payment. At the same time, Agribank needs to apply reasonable remuneration policies for staff so that they can truly feel secure in their work and devote themselves to their duties.
3.2.6. Solutions to prevent and handle risks in the card sector
Risks arising in card business are systemic in nature, in addition to the damage to cardholders, the material damage and reputation of the bank are not small. Therefore, preventing and minimizing risks in the process of issuing and using payment cards is a concern of banks. To minimize errors, prevent and limit risks that may occur in card operations, Agribank needs to take the following measures:
- Completing the organization of risk management activities in the Agribank card system is a solution that should be considered. Agribank should establish a separate risk management department that is primarily responsible for limiting risks and losses for the bank. This department has more in-depth expertise, researches and develops regulations, business processes and security in the field of payment and card issuance to minimize losses for the bank.
- To avoid risks, the Bank needs to check and verify the authenticity of information about the cardholder. When issuing credit cards, it is necessary to ensure necessary conditions such as deposits, credit guarantees, etc. Coordinate with security agencies to prevent card crimes, carefully review and evaluate customers, especially cards with special limits; ensure safety principles such as cards and PINs must be delivered directly to the cardholder or sent separately.
- The card service provider can work with criminal organizations to steal information on the magnetic strip of real cards when used at their card service provider to counterfeit or accidentally accept fake, expired, stolen cards or payments exceeding the allowed limit or can intentionally split large transactions into small transactions below the limit... Therefore, in the process of developing the card business agent system, banks need to pay attention to considering the concept of
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The way the service providers operate their business capacity as well as their financial capacity to select reputable service providers.
- It is necessary to pay more attention to the quality of card and ATM services than the number of cards and ATMs. At the same time, in building criteria for selecting staff, in addition to professional expertise, it is necessary to focus on professional ethics, meeting the needs of card expansion and development in the coming time.
- Install cameras at 100% of ATMs, pay attention to the best location to identify customers and store images so that when disputes or complaints arise, they can be used as evidence for comparison and resolution.
- Monitor card activity reports and global risk management programs of international card organizations to promptly detect fraudulent transactions in the bank's card system and take timely preventive measures. At the same time, actively coordinate with card-trading banks to identify possible risks, predict trends and take measures to respond to these risks.
3.3. Some recommendations
3.3.1. Recommendations to the government
The Government needs to take measures to create a stable economic and political environment as well as perfect legal documents related to card activities.
- Create a stable and developing socio-economic environment
A stable socio-economic environment is the most important condition for the development of any activity, not to mention card business in particular. A stable and sustainable socio-economic development will create conditions to improve people's lives, expand international relations, modernize banking technology, thereby helping banks, including Agribank, develop services in general and card services in particular. Therefore, the state needs to take measures to maintain the stability of the political - economic - social system, maintain a reasonable consumer price index, develop agriculture, industry and services, reduce unemployment, increase real income of workers, thereby encouraging the development of banking activities and card business activities.
- Perfecting legal documents and regulations against card crimes
In fact, card crimes are very dangerous and sophisticated. They collude with bank officials and computer criminals to attack customer card data warehouses to steal customer information, create fake cards to take money from customers. Many times, their scope of activities does not stop within a country but extends to the whole world.
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transnational crimes, causing heavy losses to banks when implementing card issuance and payment services. Therefore, Vietnam should impose heavy administrative sanctions and the most severe criminal penalties for card crimes to thoroughly attack these criminal gangs. For example: building the Law on Computer Crimes, the Law on Card Crimes, the Law on E-commerce Crimes, the Law on Electronic Signatures, etc.
- Implement preferential policies, investment and technology
Investing in and building technical infrastructure to modernize banking technology is not a matter of the banking industry alone but is part of the country's overall economic development strategy. Therefore, the State needs to pay attention to investing in this field, quickly bringing our country up to speed with countries in the region and the world in banking technology. Particularly for the card sector, the State should have policies to encourage banks to invest in modern technology and equipment to serve card issuance and payment activities such as: Reducing import taxes, creating favorable conditions for the import of machinery and equipment to serve card issuance and payment activities of banks; in the long term, the State needs to invest in establishing factories, facilities to produce machinery or lower, components to serve card issuance and payment such as card embossing machines, ATMs, POS, to reduce costs, create conditions for banks, have the ability to equip themselves with more complete and spacious agents...
- Facilitate the expansion of bank payments
Sectors at all levels need to pay more attention to developing non-cash payment methods and expanding payment via banks. Through press and television agencies, the State needs to systematically organize propaganda to help people understand the nature of bank cards as a modern and convenient form of payment; encourage people to transact with banks and give up the habit of keeping too much cash.
3.3.2. Recommendations to the State Bank
The State Bank must maintain the function of coordinating all activities of commercial banks. Issue general guidelines on card payment services so that commercial banks can develop their own operating regulations suitable to their own conditions. In addition, the State Bank establishes strict sanctions for violations of card operating regulations to limit risks to card services and create a safe payment environment for customers.
In the process of building a National Switching Center, the State Bank needs to play a leading role, organize the connection and guide commercial banks to participate.
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operating in this interbank system. The investment capital to develop the National Unified Switching Center is very large, so the State Bank is responsible for supporting the development of the center to help member banks reduce initial investment costs and service costs incurred when making payments through the payment card center. On that basis, card service prices will become more reasonable.
The State Bank of Vietnam needs to apply some incentives to domestic banks to improve their competitiveness with foreign banks. The State Bank of Vietnam should also allow commercial banks to establish a reserve fund for card business risks and establish a common risk management department for banks within the State Bank of Vietnam's Risk Prevention Center.
3.3.3. Recommendations to Vietnam Bank Card Association
Vietnam Bank Card Association was established in 1996 and has made significant contributions to the development of cards in Vietnam. Vietnam Bank Card Association was established to ensure that domestic banks conduct card business in a healthy manner, ensuring the interests of customers using card services as well as the interests of banks. In the past, the Card Association has carried out and needs to promote a number of tasks:
Focus on solving common problems in card issuance and service provision of banks.
Organize training sessions to improve card operations and card risk prevention methods for bank staff providing card services to the market.
Guide banks to implement directives and decisions on cards and card operations of the State Bank and the Government.
Help banks connect and share information among member banks.
Timely analyze market fluctuations in terms of prices and fees in providing services and guide member banks to implement reasonable price and fee policies.
However, the card service industry is increasingly competitive, requiring the association to further promote its activities, have strict regulations on sanctions, and actively contribute to the development of the Vietnamese card market.
3.3.4. Recommendations to cardholders
Cardholders must be aware of protecting their cards as a way to ensure transaction safety. In addition, cardholders should equip themselves with basic knowledge to
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Minimize risks caused by personal information disclosure, stolen or lost cards, and promptly support the bank when card fraud occurs.
Cardholders should proactively express their wishes and needs for the card services provided by the bank so that the bank can adjust and improve the quality of services to better serve the needs of customers. Cardholders' comments must be constructive and help the bank better meet the requirements of card users.
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CONCLUDE
Vietnam is in the process of integrating with the regional and world economy, there are opportunities and also many challenges and difficulties for the operation of the banking system. Investing in the card market has become an inevitable trend for banks to increase their competitive position in the financial and monetary market in general and the banking sector in particular. To integrate with the regional and world economy, it is necessary to expand and improve the quality of card services to minimize non-cash payments in the economy, increase the flow and modern means of payment through banks.
In recent years, the card services of the Vietnam Bank for Agriculture and Rural Development have achieved certain results with products that have created prestige and brand in the market. However, the card services of the Vietnam Bank for Agriculture and Rural Development have not yet fully met the needs of customers. The infrastructure and technical equipment for card transactions are still limited. The ATM system is unevenly distributed, the quantity and quality have not met the transaction needs of customers. Therefore, improving the quality of card services and creating trust for customers is an urgent requirement and plays an important role in the development of the bank's card services. To improve the quality of card services, it is not only the effort of the Vietnam Bank for Agriculture and Rural Development but also requires active support from the State and the participation of the commercial banking system. With the desire to contribute to the development of card services of the Bank for Agriculture and Rural Development of Vietnam, the thesis mentioned issues of card services of commercial banks in general, the importance of card services, current service status, advantages, difficulties and some solutions to improve the quality of card services of the Bank for Agriculture and Rural Development of Vietnam.
APPENDIX
Table 1. Fee for issuing Agribank's Success domestic debit card
Unit: VND/card
Item
Service content | Fee (VND) | |
1 | First card issuance | 50,000/Standard card, 100,000/Gold card Student Link Card: 30,000/card Entrepreneurship Card: Free |
2 | Reissue card | 25,000/Standard card, 50,000/Gold card Student Link Card: 15,000/card Career Card: 15,000/card |
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(Source: www.agribank.com.vn )
Table 3. Fees for issuing international cards of Agribank
Unit: VND/card
Item
Service content | Fee (VND) | ||
Debit card | Credit card | ||
1 | First card issuance | 50,000/Standard card | 100,000/Standard card |
100,000/Gold card | 200,000/Gold card | ||
250,000/Platinum card | |||
2 | Reissue card | 25,000/Standard card | 500,000/Standard card |
50,000/Gold card | 100,000/Gold card | ||
125,000/Platinum card | |||
(Source: www.agribank.com.vn )
Table 3. Annual fees for international cards of 2 banks
Unit: VND/card
Item
Service content | Agribank fees | BIDV fees | ||
Debit card | Credit card | Credit card | ||
1 | Standard Card Class | 100,000/main card | 200,000/main card | |
50,000/additional card | 100,000/additional card | |||
2 | Gold Card Class | 150,000/main card | 200,000/main card | 300,000/main card |
75,000/additional card | 100,000/additional card | 150,000/additional card | ||
3 | Platinum Card Level | 300,000/main card | 1,000,000/main card | |
150,000/additional card | 600,000/additional card | |||
(Source: www.agribank.com.vn, www.bidv.com.vn )
Table 4. Fees related to the process of using and paying for international cards of Agribank and BIDV
Unit: VND/card
Fee Type
Agribank fees (VND) | BIDV Fees (VND) | ||
Debit card | Credit card | Credit card | |
1. Cash withdrawal/advance fee | At ATM: 1,000/transaction | 2%/transaction amount; minimum 20,000/transaction | 4%/transaction amount; minimum 50,000/transaction |
2. Foreign currency conversion fee | 2%/ transaction amount | 1.1%/transaction amount | |
3. PIN re-issuance fee (due to cardholder's fault) | 20,000/time | 30,000/time | |
4. Inspection and complaint fees | 20,000/time at Agribank's device 80,000/time at other TCTTT's equipment | 80,000/time | |
5. Late payment fee | 3%/late payment amount; minimum 50,000 | 3%/late payment amount; minimum 50,000 | |
6. Fee for reissuing a copy of the transaction invoice | 20,000/time at Agribank's transaction offices 80,000/time at the payment unit of another card payment organization | 20,000/time at BIDV's transaction office 80,000/time at other bank's transaction offices | |
7. Express Release Fee | 50,000/card (not including issuance/re-issuance fee) | Not applicable | 200,000/card |
(Source: www.agribank.com.vn, www.bidv.com.vn )