The Saudi Central Bank (Sama) released updated regulations (pdf) for credit card operations on Thursday, introducing new fee caps and enhancing customer protections. All authorized credit card issuers in the Kingdom must apply the new regulations within 90 days, with few exceptions — including the new caps for credit card fees — set to take effect within 30 days’ time.

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New caps for fees: Banknotes withdrawal fees are capped at 3% of the transaction, with a maximum of SAR 75. This is a large decrease from the old maximum fee, which charged SAR 75 for transactions up to SAR 5k and 3% (going as high as SAR 300) for larger amounts.

ALSO- A maximum 2% fee will also be applied to all international purchases, and issuers cannot charge more than SAR 25 fee for invalid transaction disputes and account statement requests.

An array of services is now free of charge, including depositing funds that exceed the credit limit and withdrawing them at any time, as well as topping up e-wallets via credit cards.

Regarding repayment, the mandatory grace period is now at least 25 days, with credit card holders entitled to pay off their full outstanding balance at any time without incurring late fees.

AND- Immediate SMS notifications are now required for all financial transactions, with issuers obliged to notify customers of any fee changes via SMS, allowing the customer 14 days to terminate their agreement. Issuers must also inform credit card applicants of approvals or rejections via SMS within three business days, providing reasons and an appeal mechanism for any rejection.

The regulations also unify disclosure templates for all fees, charges, and benefits within credit card agreements, and require issuers to provide tools for customers to estimate rewards and international charges before making a purchase.

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