Everything You Need to Know About the Instant Payment System (PAL)

According to SAEDNEWS,

What is the PAL System?

The PAL System is a modern payment transfer platform that facilitates instant, interbank transfers using the Shaba number. It offers higher security than traditional card-to-card transactions and operates around the clock, allowing you to transfer funds whenever needed.

What’s the Transfer Limit on the PAL System?

Currently, the transfer limit on the PAL System is 15 million tomans. For amounts greater than this, you'll need to use alternative methods like Sata or Paya.

How Does PAL Differ from Paya and Sata?

If a bank customer wishes to transfer 10 million tomans, they would generally use either Paya or Sata.

• Paya allows transfers between 30-50 million tomans, but it only works at certain times of the day, which makes it unsuitable for instant transactions.

• Sata, on the other hand, has two significant limitations:

  1. Sata transfers can only be processed during bank working hours. If you initiate a transfer after business hours, it will only be completed the following day.

  2. Sata transfers charge a 0.2% fee per transaction.

In contrast, the PAL System allows you to transfer up to 10 million tomans at any time, with instant processing and lower fees compared to both Sata, Paya, and card-to-card transfers.

How to Use the PAL System

There are three ways to use the PAL system:

1. In-person visit to the bank branch

2. Internet banking

3. Mobile banking

For remote use, a verification code will be sent to your mobile phone to confirm the transaction. So far, banks like Melli, Mellat, Af future, Saderat, Agriculture, Parsian, Saman, Day, Tose’e Ta’avon, Pasargad, Refah Kargaran, Eqtesad Novin, Gurdashgari, and Kavirmiya have passed the Central Bank's approval tests. Other banks will soon join this money transfer ecosystem.

Differences Between PAL and Card-to-Card Transfers

There are two main differences between card-to-card and the PAL system:

1. With card-to-card, you transfer money to the destination card number. In the PAL system, you can transfer funds either to a card number or a bank account number.

2. The transaction fees for card-to-card transfers are higher compared to the PAL system. For instance, transferring 10 million tomans through card-to-card costs about 3,000 tomans in fees, while the fee for the same transfer using the PAL system is only 1,500 tomans.

Advantages of the PAL System

• Transfer up to 10 million tomans at any time of day or night

• Lower fees than card-to-card, Paya, and Sata transfers

• Transfer funds using bank account numbers instead of card numbers, providing better security

• Instant deposits to the recipient's account

Conclusion

The PAL system, according to the Central Bank, is an intermediate solution for transferring money using either Shaba numbers or card numbers. It stands out in terms of transfer limits, speed, and transaction fees.

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