The Saudi Central Bank (SAMA) has recently introduced new regulations for the issuance, operation, and fees of credit cards. These updated rules aim to improve transparency and reduce the cost of credit cards for consumers in Saudi Arabia. The new regulations will replace the ones set in 2015 and are expected to come into effect within 30 to 90 days.
Key Highlights of the New Regulations:
- Cash Withdrawal Fees:
- Withdrawals below SAR 2,500 will be charged up to 3% of the transaction amount.
- Withdrawals of SAR 2,500 or more will be subject to a maximum fee of SAR 75.
- International Transaction Fees: Purchases made internationally using a credit card will now include a 2% fee on the transaction value.
- Excess Fund Withdrawals: Customers can deposit amounts above their credit limit and withdraw the excess at any time without extra charges.
- Repayment Rule: Customers can avoid late fees if they pay their full balance within a 25-day grace period.
These changes are part of SAMA’s efforts to enhance consumer awareness, increase transparency, and make credit cards more accessible and affordable for everyone.