The Saudi Central Bank (SAMA) has announced an overhaul of the Kingdom’s credit card regulations, aimed at improving transparency, reducing costs for consumers, and supporting the national transition towards digital payments.
The new rules will be implemented within a period of 30 to 90 days.
Under the revised framework, credit card holders can expect lower fees and clearer information on charges. Issuers are now required to notify customers via SMS of any changes to fees or charges.
Customers will also have a 14-day window to cancel their credit card agreements without incurring penalties once notified of such changes.
As part of efforts to encourage digital adoption, fees on e-wallet top-ups made through credit cards have been removed.
Cash withdrawal fees have been adjusted to reduce costs.
For withdrawals below SAR2,500, the fee is capped at 3% of the transaction value, while withdrawals of SAR2,500 and above are subject to a maximum fee of SAR75.
Previously, a flat fee of SAR75 applied to withdrawals up to SAR5,000, with higher amounts attracting a 3% charge capped at SAR300.
The updated structure represents a notable reduction in potential charges for users.
A fee of 2% will now apply to international transactions based on the purchase value.
Additionally, credit card users will be permitted to deposit sums exceeding their credit limit and withdraw those excess funds without additional charges.
These changes are designed to improve flexibility and align with evolving customer needs.
As part of its broader digital transformation agenda, SAMA noted that 79% of retail payments in Saudi Arabia are now conducted digitally.
The credit card regulation updates reflect this shift, aiming to make digital financial tools more accessible, affordable, and secure.
Card issuers are now required to notify customers of all financial transactions in real time and to deliver monthly statements via SMS.
Furthermore, customers must be provided with tools to estimate international charges and rewards prior to making purchases.
The regulations also introduce a minimum 25-day grace period for repayments, allowing cardholders to pay their full balance without incurring late fees.
All fees, charges, and benefits must now be disclosed using standardised templates, promoting consistency and clarity across financial institutions.
While several fees have been reduced or eliminated, a few standard charges remain in place.
These include a SAR25 fee for filing invalid transaction disputes and a SAR25 fee for requesting printed account statements.
In developing the revised framework, SAMA collaborated with international payment companies to benchmark costs and identify areas for reduction.
