Regulatory Alerts2000-03-06
Declined Bank Card Transactions at ATMs
The Saudi Arabian Monetary Authority mandates all banks operating in the Kingdom to immediately remove and refrain from imposing any restrictions on Saudi Payment Network card usage to restore network credibility and address customer complaints. Effective 5/12/1420 AH, non-compliant banks will be charged a 6.4 Saudi Riyal fee for each declined transaction that exceeds the Authority's normal threshold. This directive reinforces previous circulars and aligns with the Authority's ongoing review of network fees to ensure a balanced approach for all stakeholders.
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