i
Acknowledgement
I owe a debt of gratitude to many people who helped me complete this thesis. I
would like to acknowledge the help of all. First of all I would like to express my
deepest acknowledgement to my supervisor, Professor Ngo Thuy Lan from National
Economics University of Foreign Languages Department, for her valuable advice
and recommendations.
I acknowledge Ms. Ha Viet Hoa, Head of Department of Marketing, Ms. Nguyen
Ngoc Anh, and Ms. Dinh Thi Thu Trang, Mr. Nguyen Huy Hoang, Mr Nguyen Hai
Tuan, Mr Trinh Thanh Dong, staff from Thanh Xuan branch of Agribank for their
support with statistical techniques and data analysis.
I am greatly indebted to Mrs. Nguyen Thi Nhu Van, Chief accountant, who
introduced me to Marketing Department and continuously encouraged me during
internship time at Thanh Xuan branch. I would particularly like to thank all staff
from Marketing Department and all members of Thanh Xuan branch of Agribank
for their help, support and providing related information, data
I would like to thank Foreign Languages Department of National Economics
University, Marketing Department of Thanh Xuan branch of Agribank which
supported me in completing my thesis.
In the process of data collection for this research, many people contributed to the
task and I am particularly grateful for their contributions.
Finally, to my family and my friends, I wish to extend my loving thanks for their
encouragement. My greatest debt of gratitude is to my parents who were supporting
me during my study in University.
ii
Abstract
In the globalization context, trade activities grow in both quantities and quality. It
is required a new safe, fast and effective payment method. In addition, this century
witnesses a lot of successes in scientific and technical progress, especially success in
advanced information technology.
Nowadays, bankcards are used more and more popularly in societies. Bankcards

Chapter III: Solutions to develop Agribank cards at Agribank Thanh Xuan
iv
Glossary of Terms and Abbreviations
Agribank Vietnam Bank for Agriculture and Rural Development
ABIC Agriculture Bank Insurance Joint – Stock Corporation
AMEX American Express
ATM Automatic Teller Machine
BIDV Bank for Investment and Development of Vietnam
EDC Electronic Data Capture
HSBC The Hongkong and Shanghai Banking Corporation
ICO International Card Organization
JCB Japan Credit Bureau
PG Bank Petrolimex Group Joint-stock Commercial Bank
PIN Personal Identity Number
POS Point of Sale
SBV The State Bank of Vietnam
SMS Short Message Services
SWIFT Society for Worldwide Interbank Financial Telecommunication
VCA Vietnam Card Association
VIB Vietnam International Bank
WSBA Western States Bankcard Association
Table of Contents
ACKNOWLEDGEMENT.............................................................................................i
v
ABSTRACT.................................................................................................................ii
GLOSSARY OF TERMS AND ABBREVIATIONS................................................ iv
TABLE OF CONTENTS.............................................................................................v
LIST OF TABLES AND FIGURES...........................................................................vii
CHAPTER I: OVERVIEW OF BANKCARD .................................................................................1
1.1. General introduction about bankcard............................................................................................................1

CONCLUSION 30
Bibliography
List of Tables and Figures
Figure 1 - Types of bankcards Error: Reference source not found
Figure 2 - Participants in bankcard transactions Error: Reference source not
found
Figure 3 - Procedure of issuing bankcard Error: Reference source not found
Figure 4 - Procedure of acquiring cards Error: Reference source not found
Figure 5 – Education of staff Error: Reference source not found
Figure 6 - Organization Chart Error: Reference source not found
Figure 7 - Services and Marketing Department Error: Reference source not
found
Table 1 - Total profit of services (VND million) Error: Reference source not
found
vii
Figure 8 - Types of Agribank Card Error: Reference source not found
Table 2 - Result of issuing cards Error: Reference source not found
Table 3 - Devices of acquiring card of Agribank Error: Reference source not
found
Diagram - Quantity of ATM, EDC Error: Reference source not found
1
CHAPTER I: OVERVIEW OF BANKCARD
1.1. General introduction about bankcard
1.1.1. History of bankcard
Bankcard history began when individual retail merchants extended credit to their
customers, allowing them to charge purchases to an account held by the merchant.
In 1730, Christopher Thompson, a furniture merchant, created the first
advertisement for credit by offering furniture that could be paid off weekly. However,
1950 marked the real beginning of the credit card most of us are familiar with today.
Diner’s Club, Inc. introduced the first credit card that could be used at a variety of

financial institution which the cardholder can gain access to the financial resources of
the bank as a line of credit.
* Classification:
There are many types of cards that can be used as alternative forms of payment.
Financial institutions issue some and bank issues others. Many allow the balance to
be paid in full each month. Some take the payment directly from the cardholder’s
bank account while others require that the cardholder send payment to the issuer.
Herein, I list some popular ways to divide bankcards.
3
Figure 1 - Types of bankcards
* Payment method:
- Debit card: A plastic card used to initiate a debit transaction. In general, these
transactions are used primarily to purchase goods and services and to obtain cash, for
which the cardholder's asset account is debited by the issuer
Debit card consist of two basic types:
+ On-line debit card: An online-debit card deducts funds from the bank account
immediately, as soon as the card is used. There is no delay for processing the
transaction
+ Off-line debit card: An off-line debit card does not deduct funds from the
checking account immediately. Transactions are processed like a regular credit card
and the funds are not deducted for 24-72 hours.
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- Bankcards: Banks, financial institutions around the world distribute cards. A
cardholder borrows money against a credit line and repays those funds with interest if
the balance is carried over from month to month.
These cards are used all around the world, such as: Visa USA, MasterCard…
- Travel and entertainment cards: travel and entertainment corporations distribute
their own cards so they are not considered bankcards since they are not issued by a
financial institution. These cards are widely used by business for their travel and
entertainment expenses, such as American Express (AMEX), Dinners Club…
* Area of using card:
5
- Domestic card: Card is used in domestic only with legal tender of that nation.
- International card: Card is used around the world, used strong currencies in
transactions.
1.2. Cards’ activities in commercial banks
1.2.1. Entities join card activities
Figure 2 - Participants in bankcard transactions
The figure shows 5 entities joining a bankcard transaction.
* International card organizations: (ICO)
For example MasterCard or Visa International/Visa USA, they are worldwide
payment service organization composed of member institutions. They set and enforce
rules and regulations governing operational procedures, interchange procedures, and
graphic design approval of their cards…
These organizations do not have a direct relationship with cardholders and
merchants.
Any bank has international card must be a member of an ICO
* The issuing members: The cardholder’s financial institution (usually called the
issuing member or issuer) is a licensed member of an ICO. The issuer directly issues
the card to the approved cardholder. The issuer may also benefit from services of a
third party processor and/or association in processing information and payments.
* The acquiring members:

The merchant can be virtually any company which meets the qualification
standards of an ICO and an acquirer.
The ICO usually requires that the merchant must be financially responsible and has
a good repute. The merchant has a written agreement with the acquirer to accept the
bankcards as a payment and to abide by the terms of the agreement.
1.2.2. Transaction process
* Issuing:
7
Figure 3 - Procedure of issuing bankcard
+ Customers
- Customers fulfill and sign on the application and credit card agreement
- Required documents: photograph 3x4 or 4x6, Copies of Identity card, copies of
passport, visa or residence permit…
- Types of guarantee for card payment.
+ Issuing banks
- Checking customer’s application, then decide to approve or not
- Approving
- Sending their requests of opening a new card to the card centre
- Receiving new card and personal identity number (PIN) from the card centre
- Handing new card and PIN over customers
- Guiding the customer to use card
+ The Card centre
- In responsibility of receiving information of customers from issuing banks
- Produce a new card
- Deliver cards to issuing banks
Customer
Application
Approval

Guide of using

Member
International
Card
Organization
Merchant
Acquiring
Member
(5)
(6)