In an effort to increase disclosure and transparency while reducing costs for consumers, the Saudi Central Bank (SAMA) issued revised guidelines for the issuance and use of credit cards on Thursday. The new rules will come into effect within 30 to 90 days.
One of the most important improvements is that credit card issuers are required to send out an SMS to clients informing them of any charge increases. clients can then cancel their agreement within 14 days of getting the notice. Credit card top-ups for e-wallets are now free.
Fees for cash withdrawals under SR2,500 are limited to 3% of the total transaction value. Fees are restricted at SR75 for withdrawals of SR2,500 or more.
A fee of 2% of the transaction amount will now be applied to international purchases.
Customers are also allowed to deposit and withdraw money at any time without incurring fees, above their credit limit.
As part of its objective to improve Saudi Arabia's digital payment ecosystem and offer a wide range of payment choices for clients and guests, SAMA collaborated with international payment companies to evaluate and lower related transaction costs.
Issuers are now required to transmit account statements via SMS and to promptly inform clients of any financial transactions as part of transparency efforts. Issuers are also required to give consumers the ability to estimate rewards and foreign fees prior to making a purchase.
A transparent 2% cost is now applied to international transactions, and there are further fees of SR25 for account statement inquiries and invalid transaction challenges.
