Tehran announced Monday that Iranian banks have been granted permission to issue credit cards for the very first time. Iranian media said the new credit cards would be for domestic use only, and stressed that the new financial venture does not involve any sort of partnership with major international credit card companies. Iranian banks have so far only issued debit and prepaid cards, the Bloomberg news agency said. According to Iran's daily financial newspaper Donya-e-Eqtesad, the move seeks to boost Iran's sanctions-damaged economy. The cards will be usable for purchasing products and services from Iranian brick-and-mortar businesses and online shops. The credit limits and annual percentage rates will be fixed by Iran's Central Bank. Individual banks will be responsible for determining whether a customer qualifies to receive a card. Cards will come in three set credit limit amounts, with a top tier of 50 million rials, or about $14,000. Bills that are not paid within a month will be subject to 18% APR. The Iranian Students' News Agency said the move was part of the Islamic republic's efforts to leverage the easing of international economic sanctions, which began following the landmark nuclear deal signed between Iran and world powers in July 2015. Valiollah Seif, the head of Iran's Central Bank, cautioned that it could take some time for banks to get used to the credit card system. "It would be incorrect to think that these cards will be used quickly within the banking network," he told ISNA.
Cash or charge? Iranian banks to issue credit cards for first time
Iranian banks, which so far have issued only debit and prepaid cards, now allowed to issue credit cards • Cards will be for domestic use only, with Central Bank to fix credit limits, fees • No partnership with any major international credit card company.
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