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2018-07-04

POS Payment Service of GCC Net

The Saudi Central Bank (SAMA) issued Circular No. 7039/41 to mandate all local banks and financial institutions to coordinate with Saudi Payments (Mada) on technical and operational readiness for the newly launched POS Payment Service of GCC Net with Bahrain. The circular requires banks to enable their store terminals to accept purchases from Bahraini-issued cards regardless of international payment networks, and to establish direct connections with Benifit’s Bahraini payment system while updating customer agreements and providing SMS notifications for cross-border transactions. Banks must conduct necessary testing, inform merchants and customers about the service pricing and benefits, and ensure all operational guidelines reflect these cross-border payment capabilities.

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Saudi Arabia

Saudi Central Bank

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Saudi Central Bank (SAMA) Headquarters

Banking Policy Department

Ref. No.: Attachments:

Circular

Ref. No.: 7039/41 Date: 1439/10/20 Attachments: None

To: Respected Banks,

Peace, mercy and blessings of Allah be upon you,

Subject: POS Payment Service of GCC Net.

With reference to the agreement reached during meetings of His Excellency the Governors of the Central Banks of the Gulf Cooperation Council (GCC) countries regarding linking POS terminal transactions among GCC states through coordination between their payment systems, and in continuation of SAMA Circular No. 371000100598 dated 14/09/1437 AH concerning the POS payment tariff for GCC Net.

We inform you that Saudi Payments (Mada) has completed system readiness in preparation for launching the POS Payment Service of GCC Net with the Kingdom of Bahrain on 22/07/2018 AD.

Therefore, the Bank confirms to all banks and financial institutions the need to communicate and coordinate with the Mada team regarding technical and operational aspects, and to conduct necessary tests to enable acceptance and processing of transactions on their systems and affiliated POS terminals, as follows:

  • Enabling its terminals in stores to accept purchase transactions executed by cards issued by Bahraini banks, regardless of the international payment systems these terminals accept, taking into account any commercial agreements signed with stores such as merchant service agreements and specific pricing for the service.
  • Enabling its customers to complete purchase transactions in the Kingdom of Bahrain through direct connection with the payment system of the Kingdom of Bahrain operated by Benifit, without the need to use international systems, and informing its customers about benefiting from this service and updating customer agreements accordingly.

We wish to highlight considering the above within agreements and guides for providing the service to merchants and customers, informing them about this service, and notifying them of executed transactions via SMS according to the requirements mentioned in SAMA letter No. 38100060893 dated 07/06/1438 AH regarding the transaction type "POS Payment" with the host country mentioned.

Yours faithfully,

Fahd bin Ibrahim Al-Shathri Deputy Governor for Supervision

Distribution Scope:

  • Banks and financial institutions operating in the Kingdom.
  • Bank departments.

P.O. Box 2992, Riyadh 11169, Telegram: MARKAZI, Telex: 404400, Tel: 4633000, Fax: 4662414

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