You might have heard of SHAPARAK, the Electronic Card Payment Network System in Iran, but what does this system do?
Card-based payment is considered a critical infrastructural facility in every country for low-value exchange transactions among the community members. This payment network which is based on payment cards issued to individuals and processes transactions through electronic terminals acclaims a large segment of household consumption payments in developed countries. In effect, this payment service provides the public with a hassle free possibility to originate cash free inter-bank fund transfer.
Alternatively, card-based payment can be defined as a type of payment system which by the use of payment cards on electronic point of sale devices the purchaser of goods or services (cardholder) effects payment to the seller (the merchant) in a no cash exchange environment. Electronic Card Payment Network System (SHAPARAK) is a platform which brings together payment service providers (PSP) and their POS terminals in a highly integrated system. By advocating central management and monitoring functionality this system guarantees the efficiency, effectiveness and the security of payment cards’ network.
SHAPARAK has put in place the required mechanisms for direct connection of payment service providers to the national payment and settlement infrastructure. In fact, the network functions as an advanced switch for accumulating and managing the payment system transactions and routing such transactions to other national networks such as SHETAB and the banking community of the country.
The prominent vision is to replace physical exchange of cash with electronic interchange of funds featuring sustained and smart monitoring by the national payment system. The mission involves the practice of governance and supervisory functions of CBI in areas related to standardization, proper distribution and monitoring the country’s electronic exchanges at trading centers for goods and services.
The card payment system as a highly integrated network, being independent of banks, handles the entire transactions originated by PSPs and settlement with merchants by applying an ad hoc business model.
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