Regulatory Alerts2020-06-06
Charging Fees on Mada Claims
The Saudi Arabian Monetary Authority (SAMA) mandates that banks and financial institutions refund customers for incorrect or incomplete ATM, POS, and e-commerce transactions within two working days. To enforce compliance, SAMA imposes tiered settlement fees ranging from 5 to 25 Saudi Riyals per claim, scaled by the total number of claims submitted. This circular, effective from 20/7/1443 AH, applies to all domestic banks, financial institutions, payment service providers, and Saudi Payments Company to strengthen banking sector confidence and reduce customer claims.
In the name of Allah, the Most Gracious, the Most Merciful
ARABIAN MONETARY AUTHORITY (SAMA)
Headquarters
Banking Policy Department
No.:
Attachments: None
Circular
To the Esteemed,
Peace, mercy, and blessings of Allah be upon you,
Subject: Charging Fees on Mada Claims.
Based on the authorities vested in the Authority under its system issued by Royal Decree No. 23 dated 1377/5/23, the Banking Control System issued by Royal Decree No. 5/M dated 1386/2/22, and Council of Ministers Resolution No. (266) dated 1440/5/2, which confirms that the Saudi Arabian Monetary Authority is the competent authority by law to operate, monitor, and supervise payment systems, financial settlement, and their services in the Kingdom, and to issue rules, guidelines, and licenses according to the standards applied by the Authority in this regard; and referring to the regulatory controls on ATM operations, point-of-sale (POS) transactions, and related procedures communicated via Circular No. 1993/M/T 102 dated 1419/2/13; and aiming to strengthen confidence in the banking sector generally and Mada services specifically, while striving to reduce customer claims against card-issuing banks and encouraging banks to maintain their devices and provide the best tools for completing banking transactions fully and correctly, it has been decided as follows:
First: Banks and financial institutions are committed to refunding the monetary amounts to their customers for incorrect and incomplete transactions across all services ("ATM, Point of Sale, E-commerce operations") within two working days from the transaction date.
Second: Financial fees are imposed on banks and financial institutions that fail to refund amounts to their customers within the period stated above, according to the following table:
| Settlement Fee per Claim | Number of Claims |
|---|---|
| 5 SAR | From 1 to 200 |
| 10 SAR | From 201 to 400 |
| 15 SAR | From 401 to 600 |
| 20 SAR | From 601 to 800 |
| 25 SAR | From 800 and above |
Effective and to be acted upon as of 20/7/1443 AH,
Yours sincerely,
Fahd bin Ibrahim Al-Shathri
Deputy Governor for Supervision
Distribution Scope:
- Banks and financial institutions operating in the Kingdom
- Payment service providers operating in the Kingdom
- Saudi Payments Company
P.O. Box 2993, Riyadh 11169, Postal Address: Central, Telex 404400, Phone 463200, Fax 4662414
No.: 41059555
Date: 1441/10/15
Attachments: None