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2021-08-29

Amendments on E-Wallets Recharge on MADA Cards

The Saudi Central Bank (SAMA) has amended the fee structure for e-wallet recharges on MADA cards processed through the e-commerce pathway, replacing percentage-based charges with fixed caps of SAR 1.5 for Merchant Service Charges and 0.5 halala for Interchange Fees. Banks and payment service providers are required to restrict these new fixed rates exclusively to e-commerce e-wallet recharges, apply the designated Merchant Category Code (MCC), and update or clarify all relevant Merchant Service Agreements to reflect the changes prior to execution. These amendments take effect on October 1, 2021, and apply to all domestic banks, payment service companies, and Saudi Payments operating within the Kingdom.

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Saudi Central Bank

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Saudi Central Bank (SAMA)

Reference No.: 43006158 | Date: 21/01/1443 (H) | Attachments: None

Circular

To Whom It May Concern,

Subject: Amendment of E-Wallet Recharge Fees on MADA Cards via the E-Commerce Pathway.

Pursuant to the authorities granted to the Saudi Central Bank under its system issued by Royal Decree No. M/36 and dated 21/05/1440H, and in reference to Circular No. 750000391 dated 21/07/1439H regarding the availability of online purchasing services via MADA cards, which included a standard template for MADA e-commerce transactions.

We wish to inform you that the fees for e-wallet recharge transactions on MADA cards via the e-commerce pathway have been amended, as follows:

  • Amendment of the Merchant Service Charge to a fixed fee capped at SAR 1.5, instead of the previous fees set at 1.75% of the transaction value.
  • Amendment of the Interchange Fee to a fixed fee of 0.5 halala, instead of the previous fees set at 0.7% of the transaction value.

The Saudi Central Bank confirms that banks and payment service providers must comply with the following instructions:

  • Restricting the use of the aforementioned fees to e-wallet recharge transactions on MADA cards via the e-commerce pathway.
  • Adhering to the use of the Merchant Category Code (MCC) when providing e-wallet recharge services on MADA cards via the e-commerce pathway.
  • Clarifying the details of all fees in new Merchant Service Agreements and updating existing agreements accordingly, and ensuring acceptance by the other party ("the merchant") prior to signing.

For your information and action, effective as of 01/10/2021. Yours sincerely,

Fahd bin Ibrahim Al-Shathri Deputy Governor for Supervision

Prepared by / Zaid bin Bandary Al-Yousef Deputy Governor for Development and Technology

Distribution Scope:

  • Banks and financial institutions operating in the Kingdom.
  • Payment service companies operating in the Kingdom.
  • Saudi Payments.

P.O. Box 2992, Riyadh 11169, Kingdom of Saudi Arabia | Tel: +966 11 463 3000

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