Raising the Purchase Limit for Mada Debit Card Transactions at POS Terminals

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

Saudi Arabian Monetary Authority
Head Office

Banking Policy Department
No.: 391000062299
Date: 02/06/1439 AH
Attachments:

Circular

To the Respected,
Greetings,
Subject: Raising the Purchase Limit for Mada Debit Card Transactions at POS Terminals.

Reference is made to the Authority’s strategy, which primarily aims to reduce cash transaction volumes and support the spread of electronic payment culture through bank cards, particularly via POS terminals in stores. It also highlights the Authority’s role in monitoring and encouraging all concerned parties to strive toward achieving the main objectives of this strategy, aiming to realize the Kingdom’s aspirations under Vision 2030 regarding financial sector development initiatives. Furthermore, this circular follows the Authority’s Circular No. 35100073726 dated 08/06/1435 AH regarding the increase of the daily limit for POS transaction amounts.

We inform you that the Authority has decided to allow banks to raise the maximum payment limit via POS terminals to SAR 200,000 based on the customer’s request and the bank’s assessment, subject to the following conditions:

1. Completing the necessary technical requirements in coordination with Mada Center under the General Department of Payment Systems, conducting required tests in advance, and submitting monthly reports for the first three months on the results of implementing the regulation.
2. All banks must provide a fee-free purchase limit adjustment feature via at least one of the bank’s electronic channels, enabling customers to access the service both within and outside the Kingdom. These channels must be indicated in the terms and conditions agreements when establishing a banking relationship with customers after the date of this circular.
3. Banks must conduct awareness campaigns via all electronic channels for their individual and merchant customers regarding the ability to raise the purchase limit.

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

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

Saudi Arabian Monetary Authority
Head Office

Banking Policy Department
No.:
Date:
Corresponding Date:
Attachments:

4. All banks must develop financial fraud monitoring and detection systems in compliance with these new amendments.

Furthermore, all banks may, starting from 30/9/2018 AD, control raising this limit to more than SAR 200,000 for customer segments wishing to increase it, according to their assessment and evaluation of potential risks, and notify the Authority regarding the approved purchase limits for each customer segment at the time.

For information, implementation, and notification to all concerned departments and branches, and sharing the Authority with the action plan to complete the limit increase requirement via the following email address (bd.btd@sama.gov.sa).

Yours sincerely,

Ahmed bin Abdullah Al-Sheikh
Deputy Governor for Supervision

Distribution Scope:

• Banks operating in the Kingdom.
• Authority departments.

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