The Saudi Central Bank (SAMA) has announced a comprehensive update to the Kingdom’s credit card regulations, aimed at improving transparency, lowering customer fees, and supporting the broader shift toward digital payments. The new rules will take effect within 30 to 90 days.
Lower Fees and Greater Clarity for Customers
The updated framework introduces cost-saving measures for cardholders while standardising how fees and charges are disclosed. Credit card issuers must now inform customers of any fee changes via SMS. Importantly, customers will have a 14-day period to cancel their credit card agreements without penalty after receiving such notifications.
SAMA has also eliminated fees on e-wallet top-ups made via credit cards, a move expected to encourage broader adoption of digital payments in line with Saudi Arabia’s Vision 2030.
Cash withdrawal fees have been restructured:
- For amounts below SAR2,500, the fee is capped at 3% of the transaction value.
- For amounts SAR2,500 and above, the maximum fee is SAR75.
Previously, withdrawals up to SAR5,000 were subject to a flat SAR75 fee, with larger withdrawals incurring 3% fees up to a SAR300 maximum. This change marks a significant reduction in potential costs for users.
Additionally, international transactions will now carry a 2% fee of the purchase value. In a customer-first shift, credit card users will also be allowed to deposit amounts exceeding their credit limit and withdraw those funds without incurring fees.
Enhancing Digital Payments and Consumer Tools
As part of a nationwide digital transformation, SAMA has reported that 79% of retail payments in Saudi Arabia are now digital. These credit card updates align with ongoing efforts to make digital financial tools more accessible and affordable.
To strengthen consumer confidence and transparency:
- Credit card issuers must immediately notify customers of all financial transactions.
- Monthly account statements must be delivered via SMS.
- Tools must be provided to help customers estimate international charges and rewards before purchases.
The rules also guarantee a minimum 25-day grace period for repayments, during which customers may pay their full balances without incurring late fees. All fees, charges, and benefits must now be presented using unified disclosure templates, ensuring clarity across financial institutions.
Additional Fees and Consumer Protections
While the reforms reduce many charges, a few standard service fees remain in place:
- SAR25 for invalid transaction dispute filings.
- SAR25 for printed account statement requests.
SAMA collaborated with international payment companies to benchmark fees and identify cost reductions, reinforcing its goal to modernise the Kingdom’s financial services sector.
The revised credit card regulations are part of SAMA’s ongoing mission to enhance the user experience, foster innovation, and build a secure and transparent payment ecosystem for both residents and visitors.
