Card payment via POS: People are not interested yet

(Baonghean)- According to the direction of the State Bank, the goal by the end of 2011 is to connect the card payment network via card acceptance points (POS) to be deployed in all provinces and cities across the country, in order to limit cash circulation, ensure safety and reduce costs.

The purpose of connecting the POS network in the area is to create conditions for a bank's card reader (POS) located at the card acceptance point to accept cards from other banks.

Thanks to that, customers of many banks can pay by card through a bank's POS machine equipped at the card acceptance point, making it convenient for customers to pay by card via POS, changing payment habits, contributing to promoting cashless payments and banks do not need to simultaneously install their own card readers at a card acceptance point, causing unnecessary waste.

The State Bank of Nghe An has issued a document instructing and requesting Commercial Bank Branches to promote the development of their banks' POS networks, diversify services, increase marketing to customers, and increase card payment sales via POS. At the same time, it has directed credit institutions to improve the quality and efficiency of POS payment methods, especially customer care.

Strengthen the dissemination of information to all employees of the payment acceptance unit to use POS proficiently, have enough knowledge, and be ready to answer customers' questions about payment via POS when requested. As of December 31, 2011, interconnection has been deployed for 163 POS of 9 Commercial Bank Branches in the province.

Thus, with the implementation of interconnection of POS networks in Nghe An, cardholders of banks: Vietcombank, Vietinbank, Agribank, BIDV, MHB, MSB, Eximbank, VPBank, VIB, Techcombank, Bac A Bank, MB,... can use their cards to pay and purchase goods at 163 POS machines of 6 issuing organizations, including: Vietcombank, Vietinbank, Agribank, BIDV, SCB, Oceanbank. This not only facilitates cardholders in payment but also brings many benefits to the banking system, saves investment costs in expanding the POS network and contributes to reducing the load on the POS system of each bank.

By February 2012, in Nghe An province, there were 107 units providing goods and services accepting card payments. In particular, cardholders can pay at POS of major supermarkets such as: Big C, Intimex, Metro; Phuong Dong Hotel, Saigon Kim Lien Hotel, Sea Golf, Bai Lu Resort, Delicious 3-region Restaurant... However, although the POS system in the area has been connected, the payment turnover is very low, even at some POS points there is no turnover.

Through the Steering Committee's survey at some points of sale equipped with EDC/POS machines, it was found that many machines were not placed in a central location for customers to easily see, nor were there any signs or introductions to let customers know about the convenient services they could use. As for infrastructure, although the card payment systems of commercial banks in the area have been connected, they have not yet been completely smooth.

Through observation, almost all units have accepted payment via POS, but customers mainly pay by cash. For example, at Big C Supermarket, although there are dozens of payment points, it is always overloaded, especially on weekends, but very few customers use card payment via POS, but instead accept to wait their turn to pay cash.

Ms. Thanh Thao - Hong Ha Trading Joint Stock Company said: Although the company has accepted card payments via POS, only a few foreign customers use this form. On the business side, we encourage customers to pay via POS, which is much more convenient, both getting capital faster, reducing staff, reducing operations and costs for cash payments.

Furthermore, it also limits the risk of payment due to loss or collection of counterfeit money. On average, in 1 month, at Hong Ha Trading Joint Stock Company, there are tens of thousands of transactions that must be paid in cash, each cashier has to count a lot of money, while there are only 40-60 card payment transactions/month. Ms. Thao added: Customers still lack confidence in this new form of payment, they are hesitant when swiping the card whether the amount in their account will be deducted correctly, and may encounter trouble when the machine has problems...

Thus, the infrastructure serving POS payments has been invested synchronously, connecting banks, but in reality, customers are not interested in this form of payment.

Quynh Lan