Regulations for the Handling of Bankcard Refunds

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

Saudi Central Bank
Headquarters

Banking Policy Department

No.: 17078/67
Date: 15/03/1441 AH
Attachments: None

Circular

To the Esteemed,

Peace, mercy, and blessings of Allah be upon you,

Subject: Regulations for the Handling of Bankcard Refunds.

Pursuant to the Banking Control System issued by Royal Decree No. M/5 dated 22/02/1386 AH, and the powers granted to the Authority to apply the provisions of the Banking Control System pursuant to Resolution No. 2149/3 dated 14/10/1406 AH by the Minister of Finance, and with reference to the updated regulations for the issuance and operation of credit cards and monthly debit cards communicated via Circular No. 361000090389 dated 26/06/1436 AH, and the Authority's instructions communicated via Circular No. 1990/M.A.T/9006 dated 18/04/1432 AH regarding the provision of immediate automated notification services via short message service (SMS).

Please be advised that all banks and financial institutions operating in the Kingdom must, when processing bankcard refunds, comply with the following:

First: Credit Bankcards:

1. Processing and settlement of incoming refund transactions within three business days from the date of receipt in the Acquirer Bank system.
2. Processing and settlement of refund transactions on credit card accounts within three business days from the date of receipt in the Issuer Bank system.
3. Notifying customers via short message service (SMS) immediately upon crediting the refund amount to the card account.

Second: Direct Debit Cards (Mada):

1. Processing and settlement of incoming refund transactions immediately upon receipt in the Acquirer Bank system.
2. Processing and settlement of refund transactions on the card account immediately upon receipt in the Issuer Bank system.
3. Notifying customers via short message service (SMS) immediately upon crediting the refund amount to the card-linked account.

For your information, and to be effective as of 01/01/2020 AD.

Yours sincerely,

Fahd bin Ibrahim Al-Shathri
Deputy Governor for Supervision

Distribution Scope:

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

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