The Saudi Central Bank (SAMA) has announced new credit card regulations aimed at reducing costs for customers while increasing transparency in the credit card sector. These updated rules will come into effect within 30 to 90 days and focus on improving the issuance and operation of credit cards.

Under the new framework, credit card issuers are required to notify customers of any changes in fees via SMS. Customers will also have the right to terminate their agreements within 14 days of receiving such notifications. Additionally, customers will no longer face charges for topping up their e-wallets using credit cards.

The updated regulations establish specific fee structures for cash withdrawals. For amounts below SAR 2 500, fees are capped at 3 percent of the transaction value. For withdrawals of SAR 2 500 or more, the maximum fee is limited to SAR 75. This marks a significant change from previous rules, where cash withdrawals incurred fees of SAR 75 for transactions up to SAR 5 000 and 3 percent for larger sums, with a maximum fee of SAR 300.

International purchases will now incur a 2 percent fee based on the transaction value. Customers will also have the flexibility to deposit amounts exceeding their credit limit and withdraw those funds without incurring any charges.

SAMA collaborated with global payment companies to evaluate and lower transaction costs, supporting its mission to enhance Saudi Arabia’s digital payment ecosystem and improve payment options for both customers and visitors. The new regulations also require issuers to provide immediate notifications of financial transactions and send account statements via SMS.

Moreover, issuers must offer tools that allow customers to estimate rewards and international charges before making purchases. In terms of repayment, customers have the option to pay their full outstanding balance without facing late fees, with a mandatory grace period of at least 25 days guaranteed.

To further promote clarity, the regulations standardize disclosure templates for all fees, charges, and benefits included in credit card agreements. Additional fees under the new system will include SAR 25 for invalid transaction disputes and requests for account statements.