The Saudi Central Bank (SAMA) has announced updated credit card rules.
The updated regulations will be for credit card issuance and operation, targeting cost reduction for customers whilst increasing disclosure and transparency levels, and will take effect within 30 to 90 days.
Under the updated framework, credit card issuers must notify customers of fee changes via SMS, with customers permitted to terminate their agreements within 14 days of receiving such notices. E-wallet top-ups via credit cards will no longer incur charges.
Saudi Central Bank announces new credit card rules to lower customer fees
The regulations establish new fee structures for cash withdrawals. For amounts below SR2,500, fees are capped at 3 per cent of the transaction value.
For withdrawals of SAR2,500 or more, fees are limited to a maximum of SAR75. This represents a change from previous rules where cash withdrawals carried fees of SAR75 for transactions up to SAR5,000 and 3 per cent of the transaction amount for sums over SAR5,000, with a maximum fee of SAR300.
International purchases will carry a 2 per cent fee of the transaction value under the new system. Customers may now deposit amounts above their credit limit and withdraw them without charges.
SAMA worked with global payment companies to assess and reduce transaction costs, forming part of its mission to enhance Saudi Arabia’s digital payment ecosystem and provide payment options for customers and visitors.
The transparency measures require issuers to notify customers immediately of financial transactions and send account statements via SMS.
Issuers must provide tools enabling customers to estimate rewards and international charges before purchases.
Regarding repayment terms, customers may pay their full outstanding balance without late fees, with a mandatory grace period of at least 25 days guaranteed.
The regulations unify disclosure templates for all fees, charges, and benefits within credit card agreements, promoting clarity for consumers.
Additional charges under the new system include SAR25 for invalid transaction disputes and account statement requests.
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