Saudi Central Bank Updates Credit Card Rules to Lower Costs and Increase Transparency
New SAMA rules limit credit card fees: 3% cash withdrawal, 2% foreign purchases, free e-wallet top-ups.
The Saudi Central Bank (SAMA) has announced updated guidelines for the issuance and operation of credit cards.
The new rules aim to lower costs for customers, increase transparency, and enhance the digital payment ecosystem in Saudi Arabia.
The changes are set to take effect within 30 to 90 days.Under the revised policies, credit card issuers must notify customers via SMS about any alterations in fees, with a 14-day window for customers to terminate their agreement following receipt of notice.
E-wallet top-ups through credit cards are now free of charge.For cash withdrawals below SR2,500, a maximum fee of 3% applies, while larger transactions face a flat fee of up to SR75.
International purchases will be subject to a 2% fee on the transaction value.The updated rules also allow customers to deposit additional amounts above their credit limit without penalty and withdraw them at any time without incurring charges.SAMA collaborated with global payment companies to review and reduce associated transaction costs, part of its broader mission to provide diverse payment options for both residents and visitors.
To boost transparency, issuers must promptly notify customers of financial transactions and send account statements via SMS.
Furthermore, tools enabling customers to estimate rewards and international charges before making a purchase are mandatory.Repayment terms have been relaxed, allowing customers to settle their full outstanding balance without facing late fees, with at least 25 days' grace period required.The updated guidelines also standardize the disclosure templates for all fees, charges, and benefits within credit card agreements, fostering greater clarity for consumers.
Previously, cash withdrawals were subject to a SR75 fee for transactions up to SR5,000 and 3% of the transaction amount above that threshold, with a maximum fee of SR300.
The new cap of SR75 on larger transactions offers more favorable terms.Additional charges under these guidelines include SR25 for invalid transaction disputes and account statement requests.
The new rules aim to lower costs for customers, increase transparency, and enhance the digital payment ecosystem in Saudi Arabia.
The changes are set to take effect within 30 to 90 days.Under the revised policies, credit card issuers must notify customers via SMS about any alterations in fees, with a 14-day window for customers to terminate their agreement following receipt of notice.
E-wallet top-ups through credit cards are now free of charge.For cash withdrawals below SR2,500, a maximum fee of 3% applies, while larger transactions face a flat fee of up to SR75.
International purchases will be subject to a 2% fee on the transaction value.The updated rules also allow customers to deposit additional amounts above their credit limit without penalty and withdraw them at any time without incurring charges.SAMA collaborated with global payment companies to review and reduce associated transaction costs, part of its broader mission to provide diverse payment options for both residents and visitors.
To boost transparency, issuers must promptly notify customers of financial transactions and send account statements via SMS.
Furthermore, tools enabling customers to estimate rewards and international charges before making a purchase are mandatory.Repayment terms have been relaxed, allowing customers to settle their full outstanding balance without facing late fees, with at least 25 days' grace period required.The updated guidelines also standardize the disclosure templates for all fees, charges, and benefits within credit card agreements, fostering greater clarity for consumers.
Previously, cash withdrawals were subject to a SR75 fee for transactions up to SR5,000 and 3% of the transaction amount above that threshold, with a maximum fee of SR300.
The new cap of SR75 on larger transactions offers more favorable terms.Additional charges under these guidelines include SR25 for invalid transaction disputes and account statement requests.
