Declined Bank Card Transactions at ATMs

Saudi Arabian Monetary Authority
Head Office

Deputy Governor
Ref: 18667/M/W/813
Attachments:
Riyadh: 1/12/1420 AH
Corresponding to:

Circular to All Banks Operating in the Kingdom

Dear Sir,

After greetings,

We would like to highlight the role played by the Saudi network in providing advanced banking services to citizens and residents, assisting them in obtaining cash easily and conveniently, which has significantly contributed to customers' reliance on the banking sector. The Authority appreciates the role performed by Saudi banks in providing these services, whether through issuing cards or installing ATMs and point-of-sale terminals. The Authority is currently studying the Saudi network fees to reach a direction that satisfies all parties.

Although the Authority previously issued Circular No. SAMA/4593 dated 5/8/1420 AH, a copy of which is attached, stipulating the obligation to refrain from imposing restrictions on the issuance or use of Saudi Payment Network cards, it has been observed that some banks have imposed restrictions on network usage. This has affected the network's credibility and caused complaints from many customers.

Therefore, we inform you that the bank must commit to refraining from imposing any restrictions on network usage and remove any existing restrictions. Please note that the Authority will, effective from 5/12/1420 AH, impose a fee of 6.4 Saudi Riyals on each declined transaction exceeding the normal rate determined by the Authority, if the bank fails to remove the existing restrictions.

For your information and necessary action.

Yours sincerely,

Deputy Governor
(Signature)
Jamaz bin Abdullah Al-Suhaimi

104
Riyadh 11169 - Telegram Address: Markazi - Telex: 401736 - Phone: 463 3000 - Fax: 463 3223