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PSPs Say Cardholders Should Pay Fees

PSPs Say Cardholders Should Pay Fees  PSPs Say Cardholders Should Pay Fees

The Central Bank of Iran wants to revise the current system of debit and credit card fees, head of Iran Kish Credit Card Company, one of the twelve authorized payment service providers said. 
"The current system of paying transaction fees cannot be used forever," Peyman Tabari said. "We need to create a balance between banks and PSPs when it comes to transaction fees," IBENA quoted him as saying. 
"A new mechanism should be created so that card holders and acquirers pay a portion of the fees for the services," he added. 
He did not provide details about the CBI's plans.
The issue of service fees for debit card holders has long been a bone of contention in the huge electronic banking sector. At present, banks receiving and making payments bear the bulk of the fees because when a payment is made with a bank card, the bank receiving the payment has to pay a fee to the bank whose card has been used. This is over and above the money banks pay as rent and support for each POS device to the PSPs.
Furthermore, banks have to pay another fee when submitting a transaction order for paying bills and purchasing phone credit recharges.
So far checking the account balance is the only electronic banking service for which users pay fees. Tabari is of the opinion that the CBI should also strive to inform public opinion about the need and significance of paying fees.
In past the CBI did not charge card holders for payment transactions in order to promote the use of electronic tools and subsequently cu the cost of printing money. However, the regulator has done next to nothing to update its rule in this context. 
Back in 2015, the CBI proposed 1,000-1,200 rial fees on POS terminal owners which led to disputes among businesses and cardholders. That proposal was shelved. 
Highlight: Banks receiving and making payments pay the bulk of the fees because when an e-payment is made with a bank card, the bank receiving the payment has to pay a fee to the bank whose card has been used. This is over and above the money banks pay as rent and support for each POS device to the PSPs 

 

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