This paper presents a new compression method (or ECG data using iterated contractive transformations. The method represents any range of ECG signal by piecewise self-afrine fractal Interpolation (PSAFI). The piecewise self-afrine rractal model is used where a discrete data set is viewed as being composed of contractive arfine transformation of pieces of itself. This algorithm was evaluated using MIT/BIH arrhythmia database. PSAFI is found to yield a relatively low reconstruction error for a given compression ratio than conventional direct compression methods. The compression ratio achieved was 883.9 bits per second (bps) - an average percent rms difference (AFRD) of 5.39 percent -with the original 12b ECG samples digitized at 400 Hz.