Research and development in private law

Research and development in private law

A critique of the legal nature and performance of the Electronic Card Payment Network Company (Shaparak)

Articles in Press

Document Type : Original Article

Authors
behzad abdollahzadeh 1
javad hosseinzadeh 2
fatemeh ghanad 2
1 University of Science and Culture
2 Associate professor, Faculty of Law, University of Science and Culture, Tehran, Iran
10.22034/jpl.2024.2045465.1136
Abstract
AbstractShaparak, or the Electronic Card Payment Network, is a key institution in the country’s electronic payment system, established with the aim of coordinating and standardizing banking and payment service providers’ activities. Although the company is privately owned, its role in monitoring, regulating, and enforcing governance standards has made it a quasi-governmental entity. Shaparak’s legal nature, in terms of its shareholder structure, statute, and method of establishment, has always been a source of doubt and debate, and many of its practical actions do not fully align with the existing legal framework. With the establishment of Shaparak, the card payment industry became independent of banks and the company became a central player in the field, able to impose binding regulations, disciplinary regulations, and even financial penalties directly on stakeholders, although these actions have in many cases conflicted with legal and statutory restrictions. Shaparak's contracts with payment service providers are mostly unilateral and based on the company's dominant economic position, so that the other party is practically unable to change the terms of the contract; this has led to the emergence of unfair terms, violation of contractual freedom, and conflict of interest between the position of the rule-maker and the executor. On the other hand, incomplete observance of the principles of the rule of law, limited transparency in decision-making, and lack of complete supervision have complicated Shaparak's legal position and created numerous practical and legal problems for stakeholders. The present study, using a descriptive-analytical method, examines Shaparak's history, legal nature, scope of jurisdiction, and performance, and analyzes its weaknesses and legal gaps, emphasizing the need for legal reform, clarification of duties, and redefining the legal nature of the company to ensure justice, healthy competition, and balance of power in the country's electronic payment system. The findings show that without structural review and strengthening operational transparency, Shaparak will not be able to fully comply with legal, economic, and competitive principles and will not sustainably establish its position.
Keywords
Shaparak؛
legal nature of Shaparak؛
electronic card payment network
؛ Central Bank؛
administrative actions؛ electronic card payment
Subjects
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