ACKNOWLEGEMENT
First of all, I would like to thank all of the professors from National
Economics University (NEU). Thanks to Program Directors, Coordinators of the
program and Teachers who did try their best to provide us valuable knowledge
during the MBA course.
Through all subjects in this course, I gained and widened a lot of knowledge in
general, market economy and business management in particularly. They are very
useful for my current work and my future career, especially about economic
foundation.
I also would like to express special thanks to my thesis supervisors,
Associate Professor, Dr. Tran Tho Dat, who provided me with valuable advises,
guidance during the time I have done the thesis.
I am grateful to my colleges, supervisors and managers of Bank for
Investment and Development of Viet Nam for their valuable supports and providing
me data during the preparation of this Thesis. Thanks to all people whom kind
enough to grant me an interview or enthusiastically provide me their feedbacks in
my surveys.
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TABLE OF CONTENTS
CHAPTER 1 17
INTRODUCTION 17
1.1. Rationale 17
1.2. Research objectives 18
1.3. Research questions 18
1.4. Research methodology 18
1.4.1. Research process 18
1.4.2. Data collection method 19
Secondary data: Secondary data collected via internal source of BIDV.
They were collected mainly base on BIDV’s report, regulations and
official documents of BIDV, internet and newspapers within 4 years from
2007 to 2010 and used as the data for a desk research. Secondary data is

2.6.1. Habit of using cash in the economy 30
2.6.2. The guidelines and policies government for payment card service on POS
31
2.6.3. The development of science technology 31
2.6.4. The infrastructures for using payment card 32
2.7. Rules for a good payment card service on POS 32
2.7.1. Security service 32
2.7.2. Convenient service 33
2.7.3. Speed processing: 33
2.8. Activities of Payment card service on POS 33
CURRENT SITUATION OF PAYMENT CARD SERVICE ON POS IN
BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM 36
3.1. Introduction of BIDV 36
3.1.1. General information of BIDV 36
3.1.2. Fields of operation 36
3.1.3. Human Resources and Network: 36
3.1.4. Customers: 37
3.1.5. Technology: 37
3.1.6. Commitment: 38
3.1.7. Business reputation of BIDV: 38
3.2. Overview of payment card services 39
3.2.1. Overview of payment card service on POS in Viet Nam 39
3.2.2. Overview of payment card service in BIDV 40
3.3. Current situation of payment card service on POS in BIDV 42
3.3.1. Type of card accepted at BIDV POS 42
3.3.2. Function 42
3
3.3.3. Type of fee and ratio fee 42
3.3.4. Criterion to become BIDV merchant 43
3.3.5. Process to establish a merchant 45

4.6.2 Make a choice reputable merchant 74
4.6.3. Limit the risk of payment card service on POS 74
4
CONCLUSION 76
5
ABBREVIATIONS
ATM: Automatic Teller Machine
BIDV: Bank for Investment and Development of Vietnam
EDC: Electronic data capture
HR: Human resource
MOTO: Mail order/ Telephone Order
POS: Point of Sale
PIN: Personal identification number
VCB: Joint stock commercial bank for foreign trade of Viet Nam
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LIST OF TABLES
CHAPTER 1
INTRODUCTION
1.1. Rationale 17
1.2. Research objectives 18
1.3. Research questions 18
1.4. Research methodology 18
1.4.1. Research process 18
1.4.2. Data collection method 19
Secondary data: Secondary data collected via internal source of BIDV.
They were collected mainly base on BIDV’s report, regulations and
official documents of BIDV, internet and newspapers within 4 years from
2007 to 2010 and used as the data for a desk research. Secondary data is
use to analyze the current situation of payment card service on POS in
BIDV

31
2.6.3. The development of science technology 31
2.6.4. The infrastructures for using payment card 32
2.7. Rules for a good payment card service on POS 32
2.7.1. Security service 32
2.7.2. Convenient service 33
2.7.3. Speed processing: 33
2.8. Activities of Payment card service on POS 33
CURRENT SITUATION OF PAYMENT CARD SERVICE ON POS IN
BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM
3.1. Introduction of BIDV 36
3.1.1. General information of BIDV 36
3.1.2. Fields of operation 36
3.1.3. Human Resources and Network: 36
3.1.4. Customers: 37
3.1.5. Technology: 37
3.1.6. Commitment: 38
3.1.7. Business reputation of BIDV: 38
3.2. Overview of payment card services 39
3.2.1. Overview of payment card service on POS in Viet Nam 39
3.2.2. Overview of payment card service in BIDV 40
3.3. Current situation of payment card service on POS in BIDV 42
3.3.1. Type of card accepted at BIDV POS 42
3.3.2. Function 42
8
3.3.3. Type of fee and ratio fee 42
3.3.4. Criterion to become BIDV merchant 43
3.3.5. Process to establish a merchant 45
3.3.6. Process of payment card 46
3.4. Evaluation of current BIDV POS services 49

4.6. Solutions for preventing and manager risk on payment card 72
4.6.1. Enhance risk management activities and prevent risk 72
4.6.2 Make a choice reputable merchant 74
4.6.3. Limit the risk of payment card service on POS 74
CONCLUSION
CONCLUSION
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LIST OF FIGURES
CHAPTER 1
INTRODUCTION
1.1. Rationale 17
1.2. Research objectives 18
1.3. Research questions 18
1.4. Research methodology 18
1.4.1. Research process 18
1.4.2. Data collection method 19
Secondary data: Secondary data collected via internal source of BIDV.
They were collected mainly base on BIDV’s report, regulations and
official documents of BIDV, internet and newspapers within 4 years from
2007 to 2010 and used as the data for a desk research. Secondary data is
use to analyze the current situation of payment card service on POS in
BIDV
Primary data: Qualitative and quantitative methods were collected to get
the information. Qualitative data is collected through in-depth interview
with very important person (VIP) and managers. This data helps
researcher to understand clearly about their needs and expectations when
they make payment by card. Moreover, the researcher would like to know
about their point of view when they use BIDV payment card service, find
out their expectations
1.4.3. Analyzing data 20

CURRENT SITUATION OF PAYMENT CARD SERVICE ON POS IN
BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM
3.1. Introduction of BIDV 36
3.1.1. General information of BIDV 36
3.1.2. Fields of operation 36
3.1.3. Human Resources and Network: 36
3.1.4. Customers: 37
3.1.5. Technology: 37
3.1.6. Commitment: 38
3.1.7. Business reputation of BIDV: 38
3.2. Overview of payment card services 39
3.2.1. Overview of payment card service on POS in Viet Nam 39
3.2.2. Overview of payment card service in BIDV 40
3.3. Current situation of payment card service on POS in BIDV 42
3.3.1. Type of card accepted at BIDV POS 42
12
3.3.2. Function 42
3.3.3. Type of fee and ratio fee 42
3.3.4. Criterion to become BIDV merchant 43
3.3.5. Process to establish a merchant 45
3.3.6. Process of payment card 46
3.4. Evaluation of current BIDV POS services 49
3.4.1. Evaluation of transactions on BIDV POS 50
3.4.2. Evaluation of BIDV POS terminal 52
3.4.3. Evaluation of BIDV merchants 54
3.4.4. Evaluation of solving problem 56
3.4.5. Evaluation of customer’s satisfactions 57
3.4.6. Evaluation of revenue and fee on POS 58
3.5. Gap between current POS services and required services 62
3.6. Limitations and reasons 64

and lack of experiences, the development of this service in BIDV is much less than
other banks. More and more banks have concentrated on developing card services
including POS services and merchant network. On the other hand, retail banking
service including card services play an important role in banking activities. It is one
of a channel bring a lot of benefit to the banks and make a close image of the bank
with customers. For purpose of having a greater understanding of this issue, the
thesis is designed to answer following questions: Firstly, what are expectations of
merchants and customers of using card and card services? Secondly, what is current
situation of payment card service on POS in BIDV? Thirdly, is there any gap
between the current situation of payment card service on POS and the expectations
of merchants and customers? Fourthly, which solutions considered consistent to
expand merchant network in BIDV basing on the current conditions of the bank?
Finally, which solutions should be taken to improve payment card service on POS
in BIDV?
Base on literature foundation of card, payment card on POS, model of
payment card, the author would like to have a deeply understanding about this
services, analysis and synthesis primary data and secondary data to give out result,
limitation since then find out reasons. Primary data collected by in depth interviews
and questionnaire survey. Secondary data collected mostly from the bank policies,
regulations and reports.
I made surveys with 50 customers who have either BIDV card or the card of
other banks and have ever made payment on BIDV POS to get their expectations
when they make payment by card on POS and get their point of views about BIDV
POS service. I also made surveys with 30 BIDV merchants (include both managers
and cashiers) to get their expectations when they use BIDV POS services and get
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their feedbacks of quality of BIDV POS services. The content of survey include
both questionnaire and evaluate by rate from 1 to 5 in which 1 is lowest and 5 are
highest. I analyzed data by excel application software. Moreover, I in dept
interviewed with 5 business customers and 5 managers at merchants to understand

country but we have joined the world trade organization and gradually integrated
and caught up with other countries. So, the payment card on POS might change and
become more popular and necessary to Vietnamese people if it has more support
from the government, other financial organizations, banks and means of media, etc.
In some recent years, several banks in Vietnam have concentrated on
developing card services and payment cards on POS. Bank for Investment and
Development of Viet Nam (BIDV) is one of the banks which pay attention to
developing card services and payment card service on POS. However, its quantities
and qualities of payment card service on POS in comparison with other banks are
less advanced. Types of card excepted at merchants are limited. Ratios of fail
transactions and fraud transactions are still high. Some commercial banks invest in
card services later than BIDV. However, they have invested better modern
technologies and taken experiences from previous banks. Therefore, they have
provided better card services, even better than BIDV or VCB which is considered to
be the leading banks in Viet Nam. Thus, developing and improving the payment
card service on POS to catch up with the development of the world, to meet the
needs of markets and customers are an important tasks for Vietnamese banks in
general and BIDV in particular. I, myself, have worked in BIDV Card center for
over 2 years. With the hope of performing a research relating to the payment card
17
service on POS in BIDV, I decide to follow this research topic “Improving payment
card service on Point of Sale (POS) in Bank for Investment and Development of
Viet Nam”.
1.2. Research objectives
In order to solve the research problem above, the thesis focused on clarifying
the objectives as below:
 Exploring expectation of merchants and customers of using card and card
services.
 Analyzing current payment card services on POS in BIDV.
 Giving out solutions and suggestions to improve payment card service on

payment card
service on POS
Payment card
service on POS
analysis
Interview with
customers,
manager, cashiers
at merchant
Questionnaires
Expectations
of merchants
and
customers
for payment
card
Current
situation
Of Payment
card service
on POS in
BIDV
GAPS
Solutions
Moreover, the researcher would like to know about their point of view when they
use BIDV payment card service, find out their expectations.
While quantitative data is collected through customer survey through Email,
telephone and meet in person.
I brief the method as follows:
Table 1.1: Data collection method

50
 Finding out their
expectation and trouble
of customers, when they
make payment by card.
According to their point
of view, finding out
weakness, strong,
advantages,
disadvantages of BIDV
payment card services
Managers of
merchant,
15
Cashier at
merchant who
swipe card in
person
15
Source: Author’s idea
1.4.3. Analyzing data
Basing on data collected to analyze current situation about payment card
service on POS in BIDV. Moreover, according to information from interview,
survey to find out expectation of customers and merchants in order orient and
suggest some solutions to develop payment card service on POS.
20
1.5. Research scope
With the aim to limit research scope, thesis is concentrated on analyzing and
evaluating in following scope:
 Payment card service on POS objective: widen merchant network,

immediately removed from the account. In 1984, Landmark implemented the first
nationwide debiting system, built on the credit card infrastructure and ATM
networks already in place. By 1998, debit cards outnumbered check usage around
the world. Its preference over checks continues to grow every year.
2.1.2. History and development of credit card
The credit card boom began in earnest in the 1960s, when bank-issued cards
from MasterCard and Visa became popular. By harnessing the electronic
transaction ability of large banks, MasterCard and Visa eclipsed the previously
dominate Diners Club, a company which processed transactions independently.
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More access to processing systems mean that consumers could use cards at more
retailers and restaurants; the more establishments that accepted credit cards, the
more popular they became.
In the 1980s, American Express, which was originally marketed to
businesspeople, and Discover became market forces. Consumers could now choose
between bank- and store-issued cards, as well as independent credit card companies
like American Express and Discover.
China, India and South Korea provide the biggest opportunities for credit
card growth. As emerging economies, the capitalist public policies of these
countries and increased tourism mean credit card companies are gaining customers
overseas. Although growth is predicted to be somewhat slower in Latin America
and Eastern Europe, credit cards continue to penetrate these regions as well.
Simply, the more formerly socialist and communist countries turn to capitalist-
based economic systems, the more opportunity for credit card industry growth
worldwide.
In a 2008 U.S. Department of Commerce Report, Scott Schmith wrote that
growth in exports and the larger economy equates with growth for the credit card
and electronic payment industry. Therefore, as the global recession subsides, credit
card industry growth is expected. Yet the timing of that growth is debated. The
banking consultancy Tower Group predicts that moderate growth in the credit card

and the use of expertise or experience, such as a person visiting a doctor.
POS/EDC (Point of Sale/Electronic Data Capture) means the card acceptance
device provided to the Merchant by acquirer bank to perform transactions.
Payment by card on POS is a service which is provided by merchant and banks
for cardholder. It allows cardholders to make payment of goods and services
through POS terminal at merchants.
Card means a mean of payment issued by the Issuing Bank to the Cardholder.
Credit cards are plastic cards that allow users to get a cash advance or buy items
24
on credit. Credit is borrowed money that must be paid back within a certain time
frame. Credit users are typically charged interest on the borrowed money if the
money is not paid back in full within that time.
Debit card is a plastic card, often issued by a bank that can be used to purchase
items; the money is deducted instantly from the balance of the account connected to
the card. Using a debit card is similar to spending cash.
Authorization Response Code means the code provided by the Issuing Bank to indicate
its approval of the transaction and is printed or written on the transaction receipt.
Transaction means POS/EDC transaction to pay for goods/services or to withdraw cash.
Card-not-present Transaction means a transaction made without the Cardholder
and the Card being present.
Card Present Transaction means a Transaction in which the Cardholder and the
Card are both physically present.
Transaction receipt means the document evidencing card transactions by the
cardholder;
PIN (personal identification number) issued to the cardholder and issued to
withdraw cash or obtain the other services at ATM (automatic teller machine)
2.2.2. Classification type of transactions on POS
Sale transaction is performed when cardholders have demand to make payment by card.
Cash transaction is performed when cardholder would like to take cash at
merchants.