August 30, 2021 | 21:34 (GMT+7)
Vietnam Banks Association urges Visa, Mastercard to reduce fees
The Vietnam Banks Association (VNBA) has urged international card organizations Visa and Mastercard to reduce several types of fees on Vietnamese banks as the fourth wave of COVI-19 pandemic in Vietnam has seriously affected the lives and production of people and businesses.
According to the VNBA, the international card organizations are collecting three to four types of fees for each transaction.
The COVID-19 pandemic has a big impact on the card business of Vietnamese banks, the association said in a written document sent to Visa and Mastercard.
Regarding payment, the value of transactions by international cards in the first six months of this year saw a drop of 23 percent compared to the same period of 2019. The value of transactions in the foreign markets plunged by 85 percent against 2019’s figure while in the domestic market by 50-70 percent over the pre-pandemic period.
Meanwhile, Vietnamese banks still have to pay huge fees to international card organizations.
The total fee collected by Visa and Mastercard from Vietnamese banks was estimated at more than 200 million USD per year in 2019-2020, it said.
Thus, the association urged the international card organizations to simplify the fee collection mechanism to avoid overlaps in collecting fees.
It is essential to have a preferential fee policy for domestic transactions which is in line with that of the card switching organization currently applied in Vietnam.
The VNBA proposed the transaction fees to be cut by at least 50 percent for both banks which issued cards and received payment.
It also requested Visa and Mastercard to consider the above proposals and deliver a response before September 10 or arrange a meeting with the association in mid-September to solve the issues.
Source: VNA