For the first time in decades, Iranian banks issue credit cards

TEHRAN, Iran - For the first time in history, Iranian banks have begun issuing credit cards that customers can use for domestic shopping. 

The country’s local media reported that the move to go plastic with money by Iranian banks did not involve any partnership with a major international credit card company for now.

According to the Iranian daily Donya-e-Eqtesad, customers can now use the cards to purchase products and services from both physical stores and Iranian online shops and said that the move was to boost the country’s economy that took a serious beating due to the international economic sanctions that were placed on it and eventually lifted earlier this year after Iran agreed to curb its nuclear activities.

It further noted that Iran’s Central Bank would fix the credit limits and fee percentages and the right to qualify a customer to receive a card would lie with individual banks. 

The credit cards are being issued under three fixed limit amounts with the highest amount being $14,000 (50 million rials). The two other credit limits have been fixed at $10,000 and $3,000.

The bank said that non-payment of bills within a month would amount to 18 percent APR fees.

This is the first time Iranian banks are issuing credit cards as the system earlier allowed for only debit and prepaid cards.