Economy, Business And Markets

CBI Told to Rethink POS Decision

CBI Told to Rethink POS Decision
CBI Told to Rethink POS Decision

The Rouhani administration has reacted to a wave of public objections raised in the past week over a decision by the Central Bank of Iran to charge shopkeepers a fee for using POS terminals, calling on the bank to rethink its controversial decision.

Last week, the central bank announced a decision to charge POS terminal holders a 1,000-1,500 rial fee per transaction. The law was supposed to be implemented as of October 23, 2014. The administration has now ordered central bank to review the issue thoroughly and submit their report to the Money and Credit Council for a final decision, according to MNA.

The central bank has not yet officially announced its retreat from the decision, which triggered anger among shopkeepers, who criticized the banking system for what they called charging “extra” fees.

The central bank earlier said the fees were to be incurred by shopkeepers only, and that customers should not worry about possible implications on prices.

Shopkeepers also argued that the set fee (1,000-1,500 rials) for each transaction would be too high for the myriad everyday retail sales.

Critics argue that the services offered on POS terminals are free of charge in many parts of the world.

However, in many other countries 1.5% to 2% of the transaction amount is charged as fees on POS terminal holders, proponents of the plan said. Apart from that, shopkeepers are charged extra costs for paper and maintenance, while in Iran they are exempted from all such costs.