Circular

To: Distinguished Sirs,

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

Subject: Rules of Issuance and Operation of Credit Cards.

Based on the Central Bank's authorities under its system issued by Royal Decree No. (36/M) dated 11/4/1442H, and other related systems, and with reference to the controls on the issuance and operation of credit cards and the monthly installment, communicated via Circular No. (36100090389) dated 26/7/1436H,

Attached are the Rules of Issuance and Operation of Credit Cards, which replace the controls on the issuance and operation of credit cards and the monthly installment communicated via the aforementioned Circular.

For your information and implementation within (90) days from the date of publication on the Central Bank's website,

Except for Paragraph (3) of Article (Seventeen) included in Chapter (Fourth) on Repayment, and Article (Forty-Eight) included in Chapter (Eighth) on Fees and Costs Associated with Credit Cards,

Which must be implemented within (30) days from the date of publication.

May God have mercy on him, and accept my greetings,

Yazid bin Ahmed Al-Sheikh
Deputy Governor for Supervision

Distribution Scope:

• Banks and financial institutions operating in the Kingdom.
• Financing companies operating in the Kingdom.

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Rules of Issuance and Operation of Credit Cards

(Second Edition – Dhu al-Hijjah/1446H - June/2025G)

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Table of Contents

Page Number	Chapter
3	Chapter One: General Provisions
5	Chapter Two: Issuance of Credit Card
6	Chapter Three: Credit Card Agreement
7	Chapter Four: Repayment
8	Chapter Five: Statement of Account
10	Chapter Six: Credit Card Transactions
12	Chapter Seven: Reporting Unauthorized Use
13	Chapter Eight: Fees and Costs Associated with Credit Cards
14	Chapter Nine: Final Provisions
15	Appendix (A): Model for Disclosure of Fees and Costs Associated with Credit Cards
16	Appendix (B): Model for Disclosure of Basic and Optional Benefits
17	Appendix (C): Guideline Model for Cost of Time Calculation Example

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Chapter One: General Provisions

Article One

The following terms and expressions - wherever they appear in these Rules - carry the meanings indicated opposite them, unless the context dictates otherwise:

Term	Definition
Central Bank	The Saudi Central Bank.
Issuing Institution	Any entity subject to the supervision and oversight of the Central Bank and authorized to issue and circulate credit cards.
Customer	A natural or legal person who submits an application to obtain a credit card from the Issuing Institution or has obtained one.
Credit Card	A card issued by the Issuing Institution that enables the Customer to obtain goods, services, or cash according to the Credit Limit, and subsequently settle the Amount Due according to the agreed repayment arrangements. The definition includes credit cards that require the Customer to settle the full Amount Due on the due date.
Credit Limit	The maximum amount determined by the Issuing Institution for the Customer that can be borrowed via the credit card for use in obtaining goods, services, or cash.
Amount Due	The total amounts used via the credit card plus any fees or costs payable to the Issuing Institution that the Customer must settle according to the agreed repayment arrangements with the Issuing Institution.
Minimum Amount	The minimum portion of the Amount Due that the Customer must settle on or before the due date.
Due Date	The end date of the repayment period by which the Customer must settle the Amount Due according to the agreed repayment arrangements.
Annual Percentage Rate "APR"	The total cost of the credit card calculated in accordance with the Central Bank's rules for calculating the Annual Percentage Rate.
Grace Period	The period during which the Amount Due can be settled according to the agreed repayment arrangements without incurring any fees or costs.
Cost of Time	The value of the installment on the Amount Due that was not settled during the grace period, as charged to the beneficiary according to the credit card agreement.
Late Payment Fees	An amount charged to the Customer after the grace period expires without settling the Amount Due according to the agreed repayment arrangements.
Initial Disclosure	Basic and clear information about the credit card, such as fees and costs, the credit limit, and repayment terms, provided to the Customer before concluding the credit card agreement.

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Article Two

1. These Rules are concluded to establish the minimum requirements that the Issuing Institution must comply with when issuing and operating credit cards; in order to enhance disclosure, transparency, and fair practices, as well as to mitigate credit risks.
2. These Rules apply to Issuing Institutions.

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Chapter Two: Issuance of Credit Card

Article Three

The Issuing Institution is prohibited from issuing a credit card to a Customer without receiving an explicit request from the Customer through any of the verified channels, conducting due diligence towards them, inquiring about their credit record, and assessing their creditworthiness through a scientific approach and clear, written standards and procedures in accordance with relevant regulatory provisions and best practices in this field.

Article Four

The Issuing Institution must notify the Customer via Short Message Service (SMS) upon accepting or rejecting their application to issue a credit card, within (3) working days from the date of the decision. The rejection notification must include the reasons for rejection and the objection mechanism.

Article Five

1. The Issuing Institution must, under any circumstances of re-issuing a credit card, notify the Customer of the card issuance via Short Message Service (SMS).
2. The Issuing Institution must enable the Customer to accept or reject the re-issued credit card. The Customer may be deemed to have consented to its issuance if they do not object within (14) days from the date of notification or upon activating the card.
3. The re-issued credit card must maintain the same terms, prices, fees, and costs as the first card, except if the issuance is based on the Customer's request to upgrade the card to a higher tier or downgrade it to a lower tier.

Article Six

1. Upon receiving a request from the Customer through any of the verified channels, the Issuing Institution may issue an additional credit card in addition to the one held, in the Customer's name or another party's name (Additional Cardholder). The Issuing Institution must notify the Customer of their responsibility for all obligations related to the use of this card.
2. The Issuing Institution must conduct due diligence towards the Additional Cardholder and notify the Customer via any of the verified channels about transactions conducted through the additional card. The Customer also has the right to request notifications for the additional credit card.

Article Seven

The Issuing Institution is prohibited from issuing a credit card to customers under the age of (18) Hijri, except if the card is additional in accordance with the requirements for issuing an additional credit card outlined in these Rules.

Article Eight

1. The Issuing Institution must not allow the use of the credit card until it is activated by the Customer through any of the verified channels.

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Chapter Three: Credit Card Agreement

Article Eleven

The Issuing Institution must provide the Customer through any of the verified channels with the best initial disclosure containing the contents outlined in Article (Thirteen) of these Rules, and obtain the Customer's acknowledgment of having read and understood the disclosure.

Article Twelve

The Issuing Institution must obtain the Customer's signature on the credit card agreement in writing, whether electronically or on paper, in accordance with relevant regulatory provisions.

Article Thirteen

The credit card agreement must be in Arabic (or in English if the Customer requests), and must include all terms and conditions for card usage, including the following:

1. Fees and costs associated with using the credit card, according to the model provided in Appendix (A) of these Rules.
2. Statement issuance date.
3. Due date.
4. Credit limit.
5. Minimum amount.
6. Repayment terms during the grace period.
7. Default in repayment terms.
8. Credit card risks and how to avoid them.

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Chapter Four: Repayment

Article Fourteen

1. The Issuing Institution must set the due date on the 15th of each month, and treat amounts paid until midnight on the due date as settled without delay.
2. The Issuing Institution must review cases where the Customer may face repayment difficulties due to technical glitches or system updates.
3. The Issuing Institution is prohibited from imposing late fees without granting the Customer a grace period of at least (25) days from the statement issuance date to settle the Amount Due.
4. The Issuing Institution is prohibited from reducing the monthly minimum payment to less than 5% of the Amount Due.
5. The Issuing Institution is prohibited from forcing the Customer to pay only the minimum amount. The Issuing Institution must also provide all repayment options to the Customer, including the option to settle the full Amount Due.
6. The Issuing Institution is prohibited from changing the agreed repayment method without a request from the Customer, except to enable the Customer to pay the minimum amount in case the full Amount Due is unavailable.

Article Fifteen

The Issuing Institution must clarify the consequences associated with paying the minimum amount on the card when repayment is offered, and its relationship to the guarantee in the credit card agreement and statement.

Article Sixteen

As an exception to the provisions of collection controls and procedures: The Customer is considered in default if the minimum amount is not paid for more than (90) consecutive days. In this case, the Issuing Institution may suspend the use of the credit card and work with the Customer to collect the Amount Due, provided that appropriate settlement solutions are proposed before proceeding with regulatory actions.

Article Seventeen

The Issuing Institution is prohibited from increasing the Cost of Time on the Amount Due due to delay or default.

Article Twenty-One

The Issuing Institution must enable the Customer to cancel the credit card at any time, without requiring their physical presence at the Institution's office, after settling the Amount Due and submitting a cancellation request through any of the verified channels. In this case, the Issuing Institution must issue a clearance letter and update the credit registry within (7) working days from the date of card cancellation.

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Chapter Five: Statement of Account

Article Twenty-Two

The Issuing Institution must provide the Customer through any of the verified channels with the statement of account, which must include:
1.1. The time period covered by the statement.
1.2. Opening balance (credit card account balance at the beginning of the statement period).
1.3. Closing balance (credit card account balance after the last statement transaction).
1.4. Financial transaction details (transaction type, date, amount, merchant details), ensuring that international transaction details include the base foreign currency amount, the exchange rate used for conversion to the local currency, the equivalent amount in the local currency after conversion, and any fees charged for this transaction.
1.5. Total financial transaction amounts.
1.6. Payments and credited amounts (any payments collected or credit balances recorded in the account, including the amount paid or refunded).
1.7. Total payment amounts.
1.8. Fee and cost details.
1.9. Total fee and cost amounts.
1.10. Amount Due, with clarification of the amount subject to Cost of Time and the calculation method.
1.11. Due date.
1.12. Annual Percentage Rate "APR".
1.13. Objection mechanism for the statement, including the available deadline.
1.14. A red-highlighted illustrative example including the following information:
a. The time period required for the Customer to settle a (700) Saudi Riyal amount or statement balance if they pay only the minimum of the total amount. b. The total amount with the cost the Customer pays when settling at the end of the period due to choosing to pay the minimum.
2. The Issuing Institution must adhere to the terminology used in the statement.

Article Twenty-Four

The Issuing Institution must enable the Customer to object to the statement within a period of no less than (30) days from the date of notification of its issuance, by:

1. Designating a specific location to receive objections.
2. Providing a form to submit objections, including the Customer's name, the disputed data, and the reasons for objection.
3. Contacting the Customer to complete any information or documents verifying the objection within a period not exceeding (7) days from the date of objection submission.

Article Twenty-Five

Provide the Customer through any of the verified channels with a reference number to track the objection, with a specified processing period, at least:

• Exceeding (90) days from the date the objection is completed,
• And the Issuing Institution may extend the period to (120) days from the date the objection is completed if necessary, provided the Customer is notified.

5. Provide the Customer through any of the verified channels with the result of the objection review, stating the reasons for the result and escalation procedures.
6. Do not request the Customer to pay any amounts related to the objection from the date of submission until the objection is processed.

Article Twenty-Six

If the objection is proven invalid, the Issuing Institution must add the reasons for invalidity along with any necessary evidence.

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Chapter Six: Credit Card Transactions

Article Twenty-Seven

The Issuing Institution must use the Saudi Riyal as the basis for accounting and disclosing credit card transactions, except for cards issued in non-Saudi currencies.

Article Twenty-Eight

Without prejudice to relevant provisions: The Issuing Institution may allow cash withdrawals up to a limit not exceeding 3% of the credit limit.

Article Twenty-Nine

The Issuing Institution must enable the Customer to deposit additional amounts onto the credit limit, provided that:

1. The added amount is used to settle subsequent transactions without incurring Cost of Time or any fees (except fees borne by the Issuing Institution on behalf of a third party), not exceeding the maximum fee limits outlined in Article (Forty-Eight) of these Rules.
2. The Customer is enabled to refund the added amount at any time, without imposing fees on the refund process.
3. The added amount is clearly stated within the credit card statement.
4. The terms and conditions related to the added amount are stated within the credit card agreement.

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Chapter Seven: Reporting Unauthorized Use

Article Forty-One

The Issuing Institution must provide a 24/7 toll-free telephone number alongside other verified channels to receive Customer reports from within or outside the Kingdom regarding loss, theft, or unauthorized use of the credit card.

Article Forty-Two

The Issuing Institution must suspend the credit card immediately upon receiving a Customer report of loss, theft, or unauthorized use, and notify the Customer via Short Message Service (SMS) while providing them with a reference number to track the report status.

Article Forty-Three

The Issuing Institution must suspend transactions pending the results of the report on unauthorized use by the Customer or Additional Cardholder, in addition to:

1. Investigating the unauthorized use.
2. The Issuing Institution may request clarifications and necessary documents to verify the report's validity and review and study the duration of unauthorized use, including:
3. Reversing the transaction amount and crediting it to the credit card account, and considering reactivating or reissuing the card after taking appropriate precautionary measures.

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Chapter Eight: Fees and Costs Associated with Credit Cards

Article Forty-Five

The Issuing Institution must include in the initial disclosure and credit agreement a detailed table of all fees and costs associated with the credit card; according to the format provided in Appendix (A) of these Rules.

Article Forty-Six

The Issuing Institution must provide an approximate calculator on the Customer's electronic website and application through which the approximate cost of an international transaction using the credit card can be calculated, considering all operations used in cost calculation, exchange fees, and stating that this cost is approximate and may vary slightly with exchange rate fluctuations.

Article Forty-Seven

The Issuing Institution must include in the initial disclosure and credit agreement a statement and illustrative example regarding the calculation of the Cost of Time, and the Issuing Institution may follow the format provided in Appendix (C) of these Rules.

Article Forty-Eight

The Issuing Institution is prohibited from exceeding the maximum limits for fees, operations, and procedures associated with the credit card in the table below for individual customers.

Operation/Procedure	Maximum Fee (excluding VAT)
1. Cash withdrawal (ATM withdrawal)	Not exceeding 3% of the transaction amount after deducting 75 SAR.
2. Cash withdrawal (transfer to current account)	Free.
3. Cash withdrawal (e-wallet top-up)	Free.
4. Objection on transactions and statement	25 SAR.
5. Credit card inquiry via ATM	1.5 SAR.
6. Local use of credit card via POS or online purchase	Free.
7. Re-issuance of credit card (lost, wrong PIN)	15 SAR.
8. Late payment	50 SAR.
9. International purchase transaction fees	2% of the transaction amount.

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Chapter Nine: Final Provisions

Article Forty-Nine

1. The provisions of these Rules do not prejudice the provisions contained in related instructions issued by the Central Bank, including but not limited to:
   1.1. Principles and rules for protecting customers of financial institutions.
   1.2. Responsible financing principles for individuals.
   1.3. Collection controls and procedures.
   1.4. Advertising controls for products and services by financial institutions.
   1.5. Rules for calculating the Annual Percentage Rate "APR".
   1.6. Disclosure rules for pricing of financing and savings products.
   1.7. Conduct and business ethics principles in financial institutions.
   1.8. Consumer financing controls.
   1.9. Financial fraud prevention guide.
   1.10. Regulatory guide for information security in the financial sector.
   1.11. Regulatory guide for business continuity management.
   1.12. Instructions for services provided to persons with disabilities in financial institutions.
2. In case of conflict between the provisions of these Rules and the rules issued by international payment card companies, the provisions of these Rules shall prevail.

Article Fifty

These Rules shall be implemented within (90) days from the date of publication on the Saudi Central Bank's website, and shall replace the controls on the issuance and operation of credit cards and the monthly installment, communicated via Central Bank Circular No. (36100090389) dated 26/7/1436H.

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Appendix (A): Model for Disclosure of Fees and Costs Associated with Credit Cards

No.	Fee Name	Fee Value
1	Annual Percentage Rate "APR"	The discount rate at which the present value of all installments and other payments due from the beneficiary, representing the total Amount Due to be settled by the beneficiary, equals the present value of the first payment or a series of payments taken by the beneficiary, on the date the financing amount becomes the available financing for the beneficiary, in accordance with the Central Bank's rules for calculating the Annual Percentage Rate "APR".
2	Cost of Time	The value of the installment on the Amount Due not settled during the grace period.
3	Annual Fees	An amount charged annually for using the card.
4	Cash withdrawal fees (ATM withdrawal, transfer to current account)	An amount charged for cash withdrawal from the available balance in the credit card via ATM or transfer to the Customer's current account.
5	Cash withdrawal fees (e-wallet top-up)	An amount charged for topping up the Customer's e-wallet from the available balance in the credit card.
6	Objection fees on transactions and statement	An amount charged when submitting an objection to a transaction or statement after review and verification of its accuracy.
7	International purchase transaction fees	An amount charged for using the credit card to purchase goods or services that differ practically from the card transaction or outside the Kingdom of Saudi Arabia.
8	Late payment fees	An amount charged to the Customer after the grace period expires without settling the Amount Due according to the agreed repayment arrangements.

The Issuing Institution must distinguish the Annual Percentage Rate "APR" and Cost of Time data with a different font and color from the rest of the data.

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Appendix (B): Model for Disclosure of Basic and Optional Benefits

No.	Details
1	Benefits based on promotional offers - if any: The details of the temporary or permanent promotional offer provided to the Customer must be clarified, including any benefits, discounts, or fee waivers, its duration, and all related terms and conditions in a manner easily understood by the Customer. <br> Illustrative example:
	Type of Promotional Offer	Offer Details	Target Category	Duration and Eligibility Conditions
	e.g., Travel Miles	e.g., Granting the Customer 1,000 miles for membership	e.g., New Customers	e.g., One thousand miles upon card activation.
	e.g., Annual Membership	e.g., Waiving the Customer's annual fees for the first year	e.g., Customers / Coding / Specific Category	Or one thousand miles upon activation, and 50,000 miles upon using the card for 50,000 SAR within 90 days of activation.
	e.g., Annual Membership	e.g., Waiving the Customer's annual fees for the first year	e.g., Customers / Coding / Specific Category	e.g., Free upon using the card for 5,000 SAR within 90 days of activation.
	The promotional offer is not binding, and the Customer will be notified before its expiration by no less than (14) days.
2	Rewards programs - if any: The program details, terms, and all benefits to be derived from it must be clarified in a manner easily understood by the Customer. <br> Illustrative example:
	Program Name	Earning and Eligibility Mechanism	Benefit Method	Validity
	e.g., Cashback	e.g., Merchant category renewal, cashback rate, and upper limit	e.g., After 24 months from the booking date.	e.g., Duration of 12 months.
	The Customer will be notified via Short Message Service (SMS) before the program expires by no less than (14) days.
3	Basic and Optional Benefits - if any: The details of any optional benefits for the credit card, including their specific terms and conditions, must be clarified in a manner easily understood by the Customer. <br> This appendix serves as the official disclosure for basic and optional benefits, and the Issuing Institution must inform the Customer regarding those benefits.

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Appendix (C): Guideline Model for Cost of Time Calculation Example

First Month

Upon your purchase of an amount of (...) Saudi Riyals on date (...), and the issuance of statement (A) on date (...) with the due date set on date (...), and your settlement of only the minimum amount by this date: The following will result:
Amount Due
Amount Paid on Due Date
Cost of Time Addition Mechanism
Amount Carried Forward to Next Month with Added Cost of Time

Second Month

Upon your cash withdrawal of an amount of (...) SAR on date (...), and the issuance of statement (B) on date (...) with the due date set on date (...), and your settlement of only the minimum amount by this date: The following will result:
Amount Due
Amount Paid on Due Date
Cost of Time Addition Mechanism
Amount Carried Forward to Next Month with Added Cost of Time

Third Month

Upon your international and local purchases totaling an amount of (...) SAR on date (...), and the issuance of statement (C) on date (...) with the due date set on date (...), and your settlement of the Amount Due by this date: The following will result:
Amount Due
Amount Paid on Due Date
Cost of Time Addition Mechanism
Amount Carried Forward to Next Month with Added Cost of Time Details provided taking into account the results of the previous month regarding fees and operations - if any.