Readiness of Banks and Payment Service Providers to Receive Requests for Electronic Payment Methods for Personal Service Activities

In the Name of Allah, the Most Gracious, the Most Merciful

Saudi Central Bank Headquarters Office

Office of the Deputy Governor for Supervision

Reference No.: 41049697 Date: 17/07/1441 Attachments: None

Circular

To: Respected [Recipients],

Peace, mercy, and blessings of Allah be upon you.

Subject: Readiness of Banks and Payment Service Providers to Receive Requests for Electronic Payment Methods for Personal Service Activities.

Building on the Saudi Central Bank's payment systems strategies and sector development program, aimed at enhancing electronic payments and reducing cash transactions, and continuing the Bank's efforts to activate electronic channels through implementing the Integrated Digital Payments Strategy Program to elevate the level of provided electronic services, in addition to the National Program for Combating Commercial Concealment's efforts to gradually mandate the retail sector to provide electronic payment methods.

The Program, in cooperation with the Bank and the Ministry of Municipal and Rural Affairs and the Ministry of Commerce, has mandated all personal service activities in the Kingdom to provide electronic payment methods starting from 08/08/1441 AH (corresponding to 01/04/2020 AD). To ensure the success of efforts to activate this decision and guarantee full readiness to keep pace with the expected volume of requests, banks and payment service providers are required to adhere to the following:

First: Readiness to receive requests for opening bank accounts and e-wallets for merchants operating in personal service activities.

Second: Readiness to receive requests for providing electronic payment methods authorized by the Bank (Point of Sale devices, or Quick Response "QR" codes) and responding to them through all various channels such as branches, the official website, and the unified number to facilitate this requirement for merchants operating in personal service activities, and adhering to the regulatory and operational rules of these services.

Third: Adherence to using the specific Merchant Category Codes (MCCs) designated for this sector when providing payment methods, as follows: 7210, 7211, 7216, 7217, 7230, 7251, 7276, 7278, 7296, 7297, 7298.

Fourth: Internal circulation of this decision to the staff of banks and payment service providers to ensure their adequate understanding when receiving requests and inquiries regarding this matter.

For information and necessary action.

Yours sincerely,

Fahd bin Ibrahim Al-Shathri Deputy Governor for Supervision

Distribution Scope:

• Banks operating in the Kingdom.
• Payment service providers operating in the Kingdom.
• Saudi Payments Company.

P.O. Box 2992, Riyadh 11169, Tel: 4662300 - Fax: 4662543