Are you wondering about the banking system which is taking care of card-based transactions in Iran? Read this article to find out more about SHETAB payment system in Iran.
The SHETAB (Interbank Information Transfer Network) system is an electronic banking clearance and automated payments system in Iran. The system was introduced in 2002 with the intention of creating a uniform backbone for the Iranian banking system to handle ATM, POS and other card-based transactions.
Before SHETAB was introduced, few Iranian banks were issuing cards that only worked on the issuing banks’ ATMs and POS machines. Since the introduction of SHETAB, all banks must adhere to its standards and be able to connect to it. Furthermore, all issued credit or debit cards must be SHETAB capable.
In 2002, when the system was introduced there were approximately 2.8 million domestic debit cards in circulation, of those approximately 530,000 were capable of using the SHETAB system. According to the last Persian year’s statistics, nearly 344M debit cards have been issued by banks, but 74M of them were used to make a transaction. This number is the key indicator that Iranians are going toward more a cashless society. And this is not only about the number of debit cards, literally, all the shops in Iran have POS terminals which enable customers to use their debit cards to make their payment.
SHETAB system is basically providing Iranians with greater efficiency, reduces crime money printing costs, and also improves tax collection among other benefits. The system is also helping citizens’ quality of life since they don’t need to spend a significant amount of time organizing things in person. It’s also enabling them to conduct their payments immediately over the internet or over the phone.
What Does It Do?
SHETAB’s functionalities are covering a wide range of transactions including cash withdrawal, electronic purchasing, funds transfer, bills payment and the balance inquiry at ATM, POS, branch-installed terminals, internet, cell-phone and kiosk platforms.
Membership to SHETAB center is governed by the applicable regulations. In fact, by proper investment in the nation-wide POS and ATM networks, the financial institutions can share the benefits derived from such investments. SHETAB is also taking on the functions of all and every required control and more importantly the processing of interbank funds’ transfer settlement.
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