Rule allowing children to use ATM cards at 6 raises eyebrows in Vietnam
Rule allowing children to use ATM cards at 6 raises eyebrows in Vietnam
A new rule lowering the legal age limit on owning an ATM card to six years old is scheduled to become effective next month, and Vietnamese parents are concerned about the potential issues once their children want a bank account of their own.
Pursuant to the current rule, an ATM cardholder must be at least 15 years of age, but this bar will be lowered to six starting August 15, when a circular released by the State Bank of Vietnam (SBV) takes effect.
“Vietnamese citizens from six to below 15 years old will be allowed to open and use their ATM accounts, with the consent of their legal custodians,” Bui Quang Tien, head of the SBV’s payment division, told Tuoi Tre (Youth) newspaper.
Tien explained further that children from six will only be permitted to own a supplementary card giving access to the primary account of their legal custodians or parents.
“The primary cardholder is fully responsible for the usage of that supplementary plastic,” he added.
This means parents must reach agreement with their issuing bank on issues like daily or monthly withdrawal limits in order to register a supplementary card for their children.
Duong Hong Phuong, a bankcard expert, said that the rule is in line with international practice and meets real demand from the public.
“It is safer to have children pay by card than cash, meaning parents are able to control the spending,” she explained.
No cash withdrawal
Shortly after the new regulation was reported in the media on Monday, many parents expressed concern over whether it is safe to give their children access to an ATM card.
Widespread concern prompted one SBV official to talk to Tuoi Tre later the same day to clarify the new rule and reassure parents.
“Under the new rule, children from six years of age are only allowed to swipe their cards at point-of-sale [POS] terminals for payment, rather than for cash withdrawal,” Doan Thai Son, the head of SBV’s legislation said.
“Payments are only accepted if they are in line with what the primary cardholders and the banks have agreed.”
For instance, Son elaborated, parents may request that the supplementary card only be used for payment of school fees or meals and stationery at the young cardholders’ schools.
Too young to use money?
Nguyen Tu Anh, a bankcard expert, said allowing children to use their own cards to cover these types of payments is convenient for parents, especially those who send their kids to international schools.
The expert, however, advised that children should be allowed to own an ATM card from ten years old. “Children under this age are too young to use money,” Anh said.
Other card experts suggested that children also be allowed to use their own cards for payments outside the school, such as at bookstores or entertainment parks, as this will help them learn about cashless payments and manage their own spending.
It is also advised that parents take it easy when giving their children an ATM card, as they are totally in control of how they will spend their funds, according to the experts.
“Parents can set a spending limit of VND200,000 [US$8.93] a week and stop worrying about their kids overspending,” a pundit told Tuoi Tre.
Despite expert reassurance, many parents still do not believe that it is a good idea to talk money with a six-year-old child.
Others, like Le Phuong Lan, mother of a fourth grader in Ho Chi Minh City, are worried that their children will soon ask to have a card of their own.
“My son immediately asked me to open an ATM account for him to keep his lucky money, promising that he would only use the money with my consent,” Lan told Tuoi Tre.
“But I rejected his request, telling him that even adults like me sometimes lose control of spending, let alone a nine-year-old boy.”
But this does not mean Lan would deny the benefits of giving her child an ATM card.
“He will never lose money, as would be the case if he were keeping cash in his pocket, but what matters is how to oversee his spending,” she said.
“I know the bank will notify me whenever his account is charged, but it will then be a fait accompli situation.”
