Iran issues local credit cards for the first time in decades

TEHRAN: Iranian banks have begun issuing credit cards for the first time in decades, local media reported on Monday.

The report by several newspapers, including the daily Donya-e-Eqtesad or World of Economy in Farsi, said the cards will be for domestic use only and do not involve any sort of partnership with a major international credit card company.

The cards are usable for purchasing products and services from Iranian online shops as well. The move is aimed at helping to boost Iran’s sanctions-damaged economy.

The credit limits and fee per centages will be fixed by Iran’s Central Bank, although individual banks will be responsible for determining if 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 (Dh51,380). Bills that are not paid within a month will be subject to 18 per cent APR fees.

So far, Iranian banks have only issued debit and prepaid cards.