The Central Bank of Iran has developed long-awaited guidelines for reforming bank commission systems, according to sources familiar with the matter. The guidelines are to be announced soon.
Reportedly, the new rules will require merchants to pay a small commission fee.
So far banks receiving and making payments bear the bulk of payment 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 on top of the amount banks pay as rent and support fees for each POS device to payment service providers.
This upcoming move follows calls from market players for reforming the fee system -- a subject under discussion for several years. In late 2022, Mehran Mahramian, CBI's deputy for innovative technology, said reforming the commission system was a CBI priority.
Fereydoun Inanloui, a representative of private banks who attended a recent meeting on the issue, told way2pay website: "I have not yet seen the circular related to the commission reform. But as far as I know, the CBI has taken a step forward in reforming the fee system after 15 years. Although we expected more meaningful reforms, it seems traders will have to pay a small fee based on the new guidelines."
The reform of the commission system is expected to have a significant impact on the e-commerce sector. The new guidelines are likely to be welcomed by business owners who have long been calling for more transparency and fairness in the commission system.
Government plans to revise upwards bank charges has been in the making for years but was put on hold apparently due to the perceived negative response of the public, particularly at a time when most households at the lower end of the economic ladder are already saddled with high and rising cost of living.
Lenders can charge customers proportionate to the total cost of the services they provide. However, they have waived the fee over the decades to compete in the market saturated with banks.
Last year, Shaparak Company, the supervisory body of the domestic e-payment network, said that the CBI would take the plunge to reset the payment fees system by July 2022. Observers say hesitation in reforming the current system could result in extra pressure on the payment service sector.
This is while, experts are pessimistic about any change in the current model, saying that it benefits stakeholders in the market except for banks and payment service providers.
A review of the average fees acquiring banks must pay for transactions shows that small payment transactions add to their costs.
Data released by Shaparak show acquiring banks pay 98 rials per every 100,000 rials of transactions.
A review of the average value of transactions acquired by banks found that banks with higher number of small transactions incur higher costs.
