Business And Markets

Iranian Banks Allowed to Issue Business Debit Cards

Iranian Banks Allowed to Issue Business Debit Cards
Iranian Banks Allowed to Issue Business Debit Cards

The Central Bank of Iran said banks and credit institutions can issue debit cards for companies and legal entities.
A business debit card is the same as the consumer debit card. Cardholders can withdraw cash from their business account, use it for other transactions through ATMs and payment gateways.
CBI has a rulebook on its website in which requirements for issuing business debit cards are detailed. As per the rules, banks should demand the legal entities' documents like the articles of association and ID of beneficiaries and those with authorized signatures. 
In the past the central bank had prohibited banks from issuing business debit cards for governmental and state-owned entities. 
Embassies, representative offices of international organizations, and agencies of the United Nations can also own business debit cards albeit by providing documents related to authorized signers confirmed by the Foreign Ministry in Tehran. 
Business debit cardholders can transact only in rials and banks will issue only one card for each business account. 
Iranian banks issue credit cards, debit cards, and gift cards. Debit cards are the most common accounting for 95.2% or 111.7 million of the total cards. Credit cards have 0.21% share of the total.  
Banks have been instructed to exercise extra caution in upholding anti-money laundering regulations when issuing debit cards for legal entities. Companies or those with authorized signatures whose names are on the AML blacklist cannot request debit cards, the CBI said. 
In recent weeks the regulator has intensified control over bank transactions to curb money laundering and speculative activity in asset markets.  
It recently banned transactions by "unidentified" customers whose IDs were not registered with banks. The restrictions caused problems as banks blocked the accounts of millions of foreigners residing in Iran, mostly Afghans.
In a similar move earlier in the week the CBI announced rules for issuing payment cards to foreigners domiciled in Iran.
As per rules, banks can at the most issue one card to adult foreigners 18 years old and above. Foreign cardholders can pay a maximum of 150 million rials a day using the card. The daily transaction limit is for foreigners with temporary residence permits.  

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