Decision No. 38/2007/QD-NHNN Issuing the Regulation on Granting, Using, and Managing Bank Card Issuer Organization Codes

Pursuant to …;

ISSUING REGULATIONS ON THE ISSUE, USE AND MANAGEMENT OF ORGANIZATION CODES FOR BANK CARD ISSUERS

ISSUE OF BANK CARDS

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GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the Law on the State Bank of Vietnam 1997 and the Law Amending and Supplementing Certain Provisions of the Law on the State Bank of Vietnam 2003;

Pursuant to the Law on Credit Organizations 1997 and the Law Amending and Supplementing Certain Provisions of the Law on Credit Organizations 2004;

Pursuant to the Government Decree No. 64/2001/NĐ-CP dated September 20, 2001 on payment activities through service providers;

Pursuant to Decree No. 52/2003/ND-CP dated May 19, 2003, issued by the Government, detailing the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

At the proposal of the Head of the Payment Department,

DECISION:

Article 1. This Decision promulgates the "Regulations on the Issue, Use and Management of Organization Codes for Bank Card Issuers" attached hereto.

Article 2. This Decision shall take effect fifteen days from the date of publication in the Official Gazette.

REGULATIONS

REGULATIONS ON THE ISSUE, USE AND MANAGEMENT OF ORGANIZATION CODES FOR BANK CARD ISSUERS
(Issued together with Decision No. 38/2007/QĐ-NHNN dated October 30, 2007 of the Governor of the State Bank of Vietnam)

Chapter 1:

GENERAL PROVISIONS

Article 1. Scope of Regulation

Article 1. These regulations govern the activities of issuing, using and managing organization codes for bank card issuers (hereinafter referred to as BIN codes) in Vietnam.

Article 2. The issuance, use and management of BIN codes for international card organizations concerning Vietnamese card issuers that issue cards bearing the brand of international card organizations are not within the scope of these regulations.

Article 2. Applicability

These regulations apply to organizations and individuals related to the issuance, use and management of BIN codes.

Article 3. Use of BIN Codes

The State Bank of Vietnam manages the issuance of BIN codes according to these regulations for the following types of cards:

Clause 1. Cards issued by card issuers in Vietnam for transactions within the territory of the Socialist Republic of Vietnam.

Clause 2. Cards issued by card issuers in Vietnam (excluding cards bearing the brand of international card organizations) for transactions both within and outside the territory of the Socialist Republic of Vietnam.

Chapter 2:

SPECIFIC PROVISIONS

Article 4. Entities Eligible for BIN Codes

Entities eligible for BIN codes are banks, non-bank credit institutions, cooperative credit institutions, and other entities not being credit institutions permitted to issue bank cards (collectively referred to as card issuers) as stipulated in Article 9 of the Regulations on the Issuance, Use, Settlement, and Provision of Support Services for Bank Card Activities issued together with Decision No. 20/2007/QĐ-NHNN dated May 15, 2007 of the Governor of the State Bank of Vietnam.

Article 5. Structure of BIN Codes

Clause 1. A BIN code is a six-digit number sequence according to the ISO/IEC 7812-1:2006(E) standard issued by the International Organization for Standardization and the International Electrotechnical Commission in 2006, with the format 9704xx, wherein:

Point a) The first four digits of the BIN code reflect the country code of the card issuer conducting card issuance activities in Vietnam.

Point b) The last two digits ranging from 00 to 99 are assigned by the State Bank of Vietnam to each card issuer.

Clause 2. In the event that the range of numbers (100 numbers) specified in Clause 1 of this Article is fully allocated to card issuers, the Governor of the State Bank of Vietnam will establish a new structure for BIN codes suitable for the conditions of BIN code issuance, use, and management at that time.

Article 6. Procedures for Issuing BIN Code

1. When there is a need to be issued a BIN code, the card issuing organization must submit to the State Bank of Vietnam (Settlement Department) a dossier including:

a) Application form for BIN code issuance according to Form No. 01;

b) One copy of the establishment and operation license for the card issuing organization that is a credit institution or the operating license for banks for card issuing organizations that are not credit institutions.

2. Within five working days from the date of receiving a complete and valid dossier, the State Bank of Vietnam shall issue the BIN code to the card issuing organization.

Article 7. Management of BIN Code

1. The State Bank of Vietnam shall only issue one unique BIN code for each card issuing organization eligible for BIN code issuance. The card issuing organization is permitted to use digits following the BIN number to distinguish types of products, services, card technology, or geographic location.

2. If the card issuing organization changes its trading name, it may continue to use the current BIN code issued by the State Bank of Vietnam, but it must send a written notice to the State Bank of Vietnam regarding the change in its name.

3. Within 180 days from the date of BIN code issuance, the card issuing organization must be responsible for putting the BIN code into use. If the card issuing organization does not use the BIN code within the prescribed period, it must send a written request to the State Bank of Vietnam (Settlement Department) for an extension. The maximum extension period is 90 days from the date the State Bank of Vietnam receives the application for extension from the card issuing organization.

4. The card issuing organization must use the BIN code issued by the State Bank of Vietnam according to the purpose stated in the BIN code issuance application and is not allowed to transfer the BIN code under any form.

5. In cases where card issuing organizations (already issued BIN codes by the State Bank of Vietnam) carry out mergers, consolidations, or acquisitions, the newly formed card issuing organization resulting from such mergers, consolidations, or acquisitions may choose one unique BIN code among the BIN codes currently in use by the involved card issuing organizations. Within three years from the date of merger, consolidation, or acquisition, the newly formed card issuing organization is responsible for converting cards with non-selected BIN numbers to the selected unique BIN number. After the prescribed period, the card issuing organization is responsible for notifying the State Bank of Vietnam in writing about the discontinued use of the issued BIN code.

Article 8. Revocation of BIN Code

1. The State Bank of Vietnam shall recover the BIN code issued to the card issuer organization in any of the following cases:

a) Information and evidence in the BIN code issuance application are inaccurate or misleading.

b) The card issuing organization is dissolved, bankrupted, or ceases operations.

c) After the deadline specified in Clause 3, Article 7, the card issuing organization does not put the BIN code into use.

d) After the deadline specified in Clause 5, Article 7.

đ) Using the BIN code for purposes other than those stated in the application for the BIN code.

2. When revoking the BIN code, the State Bank of Vietnam must issue a decision on BIN code revocation and send it to the card issuing organization.

Article 9. Effective Date of BIN Code

1. For card products already launched or registered for issuance before the effective date of this Regulation, the card issuing organization is permitted to use the old BIN code (not the BIN code issued by the State Bank of Vietnam) until June 30, 2011, or the BIN code issued by the State Bank of Vietnam for new cards belonging to these card products.

2. From the effective date of this Regulation, the card issuing organization is responsible for using the BIN code issued by the State Bank of Vietnam for new cards belonging to new card products registered for issuance.

3. By June 30, 2011 at the latest, all card issuing organizations using the old BIN code must implement necessary modifications to their technological systems and internal procedures to convert cards using the old BIN code to cards using the BIN code stipulated in this Regulation.

4. As of July 1, 2011, card issuing organizations not using the BIN code as stipulated in this Regulation will be compelled to cease card issuance operations and will bear full responsibility for any losses and risks arising from non-compliance with the BIN code stipulated in this Regulation.

Chapter 3:

IMPLEMENTING PROVISIONS

Article 10. Responsibilities of Departments and Bureaus at the State Bank of Vietnam

1. The Payment Department shall be responsible for:

a) Directing the implementation of this Regulation.

b) Issuing and revoking BIN codes; Supervising the use of BIN codes in accordance with the provisions of this Regulation.

c) Coordinating with relevant units to advise the Governor of the State Bank of Vietnam on handling violations of this Regulation.

d) Notifying in writing the issuance or revocation of BIN codes to card issuing organizations.

đ) Announcing every six months the list of BIN codes issued by the State Bank of Vietnam on the electronic information website of the State Bank of Vietnam.

2. The Banking Information Technology Bureau shall be responsible for:

a) Developing software programs to serve the management requirements of the State Bank of Vietnam regarding BIN codes.

b) Coordinating with the Payment Department in monitoring and inspecting the use of BIN codes in accordance with the provisions of this Regulation.

3. The Banks Department shall be responsible for:

a) Providing the Payment Department with information on the establishment and operation of card issuing organizations.

b) Providing the Payment Department with information on changes in card issuing organizations including bankruptcy, dissolution, division, merger, acquisition, name change, and revocation of banking business licenses.

4. The State Bank Inspectorate shall be responsible for:

a) Conducting inspections, audits, and evaluations of the use of BIN codes by card issuing organizations and handling violations within its authority, and notifying the results to the Payment Department.

b) Advising the Governor of the State Bank of Vietnam on handling cases of violation of the provisions of this Regulation.

Article 11. Responsibilities of the Head of the Card Issuing Organization Unit

The General Director (Director) of the card issuing organization shall be responsible for overseeing, supervising, and inspecting the use of BIN codes at their unit in accordance with this Regulation.

FORM NUMBER 1

SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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…., day … month … year …

APPLICATION FOR ISSUANCE OF ORGANIZATION CARD ISSUING CODE

Respectfully submitted to: State Bank of Vietnam (Payment Department)

Based on the License for Establishment and Operation of Credit Institutions/Banking Business License number … day … month … year …;
Based on Decision … day … month … year … of the Governor of the State Bank of Vietnam promulgating the Regulation on Issuance, Use, and Management of Organization Card Issuing Codes.

We request the State Bank of Vietnam to consider issuing the organization card issuing code (BIN code) for the card issuing organization:

1. Name of the card issuing organization:

2. Location of the main office:

3. Expected time to put the BIN code into use:

4. Summary of the purpose of using the BIN code attached to specific card products:

After being issued the BIN code, we commit to putting the BIN code into use within the prescribed period, for the intended purpose, and strictly comply with the Regulation on Issuance, Use, and Management of Organization Card Issuing Codes and take responsibility for the accuracy of the accompanying documents submitted with this application.

Attached documents: