The Saudi Central Bank (SAMA) has introduced a new framework governing credit card transactions, fee structures, and consumer rights. The new rules, effective 30–90 days post-announcement, aim to boost transparency, protect consumers, and support Saudi Arabia’s digital shift.
The move supports Saudi Arabia’s drive to modernise finance, with 79% of retail payments now digital. As a close GCC neighbour with a shared vision for cashless ecosystems, the UAE is closely watching these developments.
What Are the Key Changes in the New Credit Card Policy?
Withdrawal Fees Capped
Under the revised framework, cash withdrawals through credit cards will now carry limits on charges. Withdrawals below SAR 2,500 will incur a fee of no more than 3% of the amount, while withdrawals at or above SAR 2,500 will be capped at SAR 75. Previously, the structure allowed significantly higher charges depending on the withdrawal size.
International Transaction Fee Standardised
One of the most impactful changes is the standardisation of fees for international credit card transactions. SAMA has now fixed this at 2% of the total transaction value, creating more predictability and fairness for cardholders.
E-Wallet Top-Ups Now Free
In a major win for digital payment users, SAMA has abolished fees for credit card top-ups made to electronic wallets. This measure is expected to encourage further adoption of contactless and cashless transactions—a trend also gaining momentum in the UAE.
Grace Periods and Minimum Payments Redefined
The new regulations mandate a minimum grace period of 25 days before any late fees are applied. Additionally, consumers can now repay the full outstanding balance during the grace period without incurring interest. This move brings credit terms closer to international standards and offers greater flexibility for cardholders.
Over-Limit Deposits and Refunds Clarified
The new rules also address situations where consumers exceed their credit limits with additional payments. Cardholders will now have the right to request a refund of the excess amount without being charged a processing fee.
Transparent Fee Structures and Alerts
All financial institutions are now required to provide clear, standardised templates outlining all associated fees. Moreover, credit card holders will receive SMS alerts for fee updates, real-time transaction notifications, and monthly summaries—ensuring they remain informed and in control.
Additionally, consumers have the right to cancel their credit card agreement within 14 days of any change in terms, offering a level of flexibility and consumer protection previously lacking.
UAE Residents and Expats Should Pay Attention to?
While the changes are being implemented in Saudi Arabia, they carry implications for UAE-based residents—especially those who frequently travel, work, or conduct transactions across borders.
For professionals using multi-national credit cards or managing cross-border business expenses, capped foreign transaction fees and standardised e-wallet structures could reduce financial friction. Moreover, as both Saudi Arabia and the UAE strive towards financial transparency and user empowerment, such reforms could set a precedent for similar changes across the GCC.
Analysts say these consumer-first moves may prompt similar UAE reforms, especially on fee clarity and grace periods.
Next Step for Cardholders
- Review Your Card Agreement: Whether your credit card is UAE- or KSA-issued, revisit the terms of use, especially related to cash advances, international spending, and interest-free periods.
- Track Bank Alerts: Expect a wave of updated notifications and alerts from card issuers. Ensure your contact details are current to receive important updates.
- Embrace Digital Wallets: With fees scrapped for wallet top-ups, consumers can now make the most of digital payment platforms.
- Know Your Rights: Understanding fee structures and your right to cancel agreements within 14 days of changes puts you in control of your finances.
Consumer-Friendly Financial Systems
The new credit card rules introduced by the Saudi Central Bank represent more than just regulatory reform—they signal a regional shift towards more transparent, equitable, and user-centric financial ecosystems.
For UAE residents and businesses with ties to Saudi Arabia or interests in Gulf financial policy, these reforms are worth monitoring. As the region continues its digital and regulatory evolution, similar consumer-centric policies could soon find their way into the UAE’s financial frameworks.
Read More:
- Saudi Arabia introduces major national Road Code reform – Social Kandura
- RTA and Emaar Announce Major Burj Khalifa Dubai Mall metro expansion – Social Kandura
Stay updated on GCC banking reforms and what they mean for your wallet. Follow Social Kandura for the latest financial updates and all things happening in Dubai and the UAE.
