Out of SAMA's keenness on the interest of bank customers and the protection of their personal information and in line with the internationally applicable security policies and standards, which work to preserve banking information to reduce fraud and reduce potential risks, and as you know, the current receipts for POS operations show all the card number used, whether on debit or credit card receipts, as SAMA believes that this is a leak of customer card information, which may be misused in fraudulent operations. 

Therefore, it was decided that the Bank will coordinate with POS suppliers to amend the POS operations receipts printing form so that it shows the last four digits as follows: 

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Therefore, the bank must take this procedure to modify all current devices before the beginning of Ramadan 1429 H and inform SAMA of what the bank will take in this regard within two weeks from its date, taking into account the evaluation of the current service and solving all obstacles that may face users of POS machines.

Based on the powers vested to SAMA under the relevant regulations and instructions, and based on its supervisory and regulatory role over the financial institutions under its supervision.

I would like to inform you that banks operating in the Kingdom must disable point-of-sale devices for the frozen bank accounts of Juristic Persons, while ensuring that all accounts and transactions of Juristic Persons are frozen upon the expiration of the necessary documentation to conduct business.

For your information and action accordingly as of its date.

Further to SAMA's instructions issued by Circular No. 7039/41 dated 20/10/1439 H, and Circular No. 371000100598 dated 14/9/1437 H regarding GCC POS Pricing Policy and its associated fees, and in continuation of ongoing work between monetary institutions and central banks in the Gulf Cooperation Council (GCC) countries aimed at integrating payment systems among the GCC states, and referring to what was agreed upon in the periodic meetings of the governors of monetary institutions and central banks in the council to link the POS networks of the GCC countries with the Gulf Payments Network, as this is a vital aspect of integrating payment systems among GCC countries, enhancing and supporting cooperation among the GCC countries.

I would like to inform you that it has been decided to activate the Point of Sale (POS) service for the Gulf Payments Network in the State of Kuwait to accept POS transactions starting from 01/01/2020, and accordingly banks are required to adhere to the following:

First: Take the necessary technical and operational measures to accept and process transactions on their systems and on their point-of-sale (POS) devices to complete purchase transactions via POS between the Kingdom and the State of Kuwait.

Second: Take the necessary commercial measures with their customers holding Gulf Network cards and merchants accepting Gulf Network cards to ensure that transactions are processed in accordance with the approved pricing.

Third: Notify and educate customers holding Gulf Network cards that purchase transactions in the State of Kuwait will be processed through the payment network of (K-Net), which is connected to the Gulf Network.

Fourth: Process and accept all Gulf network transactions using cards bearing the Gulf Network logo, and also accept Gulf network cards on their point-of-sale devices.

 For your information, and action accordingly from the activation date mentioned above.

Referring to the strategic directions of the Financial Sector Development Program in reducing cash transactions and enhancing electronic payments in order to reach a cashless society, and to complement the efforts of SAMA in support of activating the use of electronic channels through the implementation of the Integrated Digital Payments Strategy Program to improve the level of electronic services provided, and to enhance the efforts of the National Program to Combat Commercial Concealment by gradually obliging the retail sector to provide an electronic payment method.

I inform you that in cooperation with the Ministries of Municipal and Rural Affairs and Commerce and Investment, car workshops and related services have been obligated to provide the "Mada Point of Sale" service starting from 18/3/1441 H corresponding to 15/11/2019 G, and in order to succeed in the special efforts to activate this decision, and to ensure the readiness of the banking sector to keep pace with the expected volume of demands, banks must verify the following:

 For your information ana action accordingly, and communicate it to all concerned departments and branches.

Referring to the strategic directions of the Financial Sector Development Program in reducing cash transactions and enhancing electronic payments in order to reach a cashless society. I inform you of SAMA's cooperation with the Ministry of Commerce and Investment and the Ministry of Municipal and Rural Affairs, leading to a decision to oblige all gas stations in the Kingdom and their affiliated service centers to provide point-of-sale services through the national payment system (Mada), starting from Sunday, 11/11/1440 H.

I would like to emphasize the importance of this decision and its alignment with the general strategies of institutions aimed at enhancing the principle of financial inclusion and reducing the percentage of cash transactions in order to achieve the goals of Saudi Vision 2030.

To ensure the success of efforts to activate this decision and to guarantee the banking sector's readiness to meet the expeted volume of demands, it is necessary for banks to verify the following:

First: Readiness to receive applications for opening bank accounts for gas station owners and their affiliated service centers, and to respond quickly to these requests.

Second: Readiness to receive requests for providing point-of-sale devices and responding through various bank channels, such as branches, online banking, and phone banking, to facilitate this requirement for gas station operators and their affiliated service centers, and to adhere to the specified maintenance times as stipulated in the Mada standards document and service level agreements.

Third: Limiting the use of the reduced pricing model for gas stations mentioned in SAMA's instructions issued under Circular No. 361000111820 dated 18/8/1436 H should be limited to fuel sales services only, and should not be used for any other services related to gas stations.

Fourth: Internally circulate this decision to bank employees to ensure they have a sufficient understanding when receiving requests and inquiries in this regard.

For your information, please act accordingly and inform all relevant departments and branches.

In reference to the agreements made during the meetings of the governors of the central banks of the Gulf Cooperation Council (GCC) countries regarding linking point-of-sale operations between the member states through the coordination of their payment systems, and further to SAMA's circular No. 371000100598 dated 14/09/1437H regarding the pricing policy for point-of-sale payments for the Gulf Payment Network.

We would like to inform you that the Saudi Payment Network (MADA) has completed the system readiness in preparation for the launch of the point-of-sale service for the Gulf Payment Network with the Kingdom of Bahrain on 22/07/2018G.

Therefore, SAMA emphasizes that all banks should communicate and coordinate with the MADA team regarding the technical and operational aspects and conduct the necessary tests to enable the acceptance and processing of transactions on their systems and on their point-of-sale devices, as follows:

- Enabling its devices in stores to accept purchase transactions executed with cards issued by Bahraini banks, regardless of the international payment systems accepted by these devices, while considering any commercial agreements signed with the stores, such as merchant service agreements and specific pricing for the service.

- Enabling its customers to complete purchase transactions in the Kingdom of Bahrain through direct integration with the Bahrain payment system operated by (Benifit), without the need to use international systems, and educating its customers about the benefits of this service while updating customer agreements accordingly.

We would like to emphasize the importance of incorporating this into the agreements and guidelines for providing the service to merchants and customers, educating them on how to benefit from this service. Furthermore, customers should be notified of the transactions conducted via SMS messages, in accordance with the requirements outlined in SAMA's letter No. 381000060893 dated 07/06/1438H regarding the transaction type "Payment via Point of Sale," including the host country.

In line with the Kingdom’s Vision 2030 to support small and medium enterprises as a vital sector contributing to the prosperity of the Kingdom's economy, and with SAMA's commitment to support banking initiatives related to this important sector.

We inform you that SAMA has recently activated certain technical settings on its Central Management System (Terminal Management System – TMS) to support small, medium, and micro enterprises by enabling banks operating in the Kingdom to finance these enterprises based on the volume/value of cash flows executed through point-of-sale devices (Mada) only during the period specified in the contract. SAMA has introduced a new feature that allows all banks to check the status of the enterprise (store) regarding any financing obligations linked to cash flows executed through point-of-sale systems with another bank before contracting to provide it with the point-of-sale service (Mada).

Therefore, we hope TO adhere to the following:

1. Utilize the feature applied to the TMS for financing contracts for small, medium, and micro enterprises that rely only on cash flows through point-of-sale systems (Mada).
2. Banks must not use this feature for other financial obligations that require multiple guarantees, even if such service is mentioned in the contract and obliges the enterprise (merchant) to benefit from it.
3. When granting the aforementioned financing, it should be considered whether there are existing financings based on the cash flows of the enterprise.

In reference to the strategy of SAMA, which primarily aims to reduce cash transaction volumes and support the spread of electronic payment adoption through bank cards, especially via point-of-sale devices in stores, and the role of SAMA in monitoring and encouraging all stakeholders to strive toward achieving the main objectives of this strategy, with the aim of fulfilling the aspirations of the Kingdom under Vision 2030 regarding initiatives to develop the financial sector, and to meet the requirements of the local market, particularly for commercial sectors with high-ticket purchases, and further to SAMA’s circular No. 351000073726 dated 08/06/1435H concerning increasing the daily limit for purchase transactions through point-of-sale devices.

We would like to inform you that SAMA has decided to allow banks to raise the maximum payment limit via point-of-sale devices to 200,000 SAR based on customer requests and the bank's assessment, provided that the following is taken into consideration:

1. Complete the necessary technical requirements in coordination with the Mada Authorization Center in the General Directorate of Payment Systems and conduct pre-testing, as well as submit monthly reports for the first three months on the implementation results.
2. All banks must allow the purchase limit adjustment without additional fees through one of the bank's electronic channels, enabling customers to access the service from within and outside the Kingdom. These channels should be mentioned in the terms and conditions agreements at the start of the banking relationship with the customer after this circular's date.
3. Banks should conduct awareness campaigns across all electronic channels for their customers in both individual and merchant categories regarding the possibility of raising the purchase limit.
4. All banks should develop (fraud monitoring and detection systems) in accordance with these new amendments.

Additionally, starting from 30/09/2018G, all banks can control increasing this limit to more than 200,000 Riyals for customer segments wishing to increase it based on their risk assessment, and they must notify SAMA regarding the approved purchase limits for each category of their customers accordingly.

For your information and to act accordingly, please inform all relevant departments and branches, and share the plan of action with SAMA to meet the requirement of raising the limit at the following email address: (bd.btd@sama.gov.sa).

Further to SAMA's Circular No. 351000152594 dated 25/12/1435H regarding the tariff for the Saudi Payments Network (Mada) services, and as part of SAMA's efforts to support and promote the use of electronic channels in the local market for various commercial activities,

we would like to inform you that a commercial model (Pricing Model) has been developed for the Point of Sale (POS) service in the remittance centers sector for transactions conducted using Mada cards. The implementation of the pricing model for the remittance centers sector has been decided as follows:

Phase One – For a duration of two months (starting from 27/10/1437H, corresponding to 01/08/2016G):

  2. The second phase (starting from 30/12/1437 H corresponding to 1/10/2016 G):

SAMA also emphasizes the need for banks to adhere to the following instructions:

Adhere to the definition of the Merchant Category Code (MCC) assigned to identify and classify the POS devices used for the financial transfer centers sector, which is the code (4829), and limit their use to these devices.

Ensure the correctness and accuracy of the device data available in the Terminal Management System (TMS).

The bank shall clarify the terms of the mentioned service through the Merchant Service Agreement (MSA) and ensure that the other party (merchant) accepts it before signing the agreement.

All legal procedures and financial and administrative penalties will be taken against the service provider bank for each device in case of non-compliance with the restriction of using the codes mentioned in paragraph (1) of this circular for POS devices that are installed and operated in financial transfer centers.

SAMA also emphasizes the need to adhere to the Mada tariff policy and not to impose any additional fees (such as installation fees, monthly fees, maintenance fees, communication fees or others) on all POS devices in various commercial activities. Note that this pricing applies exclusively to Saudi Network 'Mada' cards. The bank may use it as a reference if it wishes to apply it to other cards

Referring to SAMA Circular No. 341000076614 dated 20/6/1434 H regarding the Saudi Payments Network Operating Rules and Regulations (Mada), which include the Refund service on POS terminals.

Attached is the updated document detailing the technical and operational rules and procedures for the Refund service for banks wishing to implement it and sign the agreement to activate the service for their merchant customers. Compliance with the outlined provisions is mandatory, and no fees should be imposed on the customer, merchant, or bank for this service.

For more information and coordination regarding this service, please contact the Mada team via their official website (mada.com.sa).

In reference to the Direct Authorization Service on Point of Sale Devices “POS Offline Authorization” using Saudi Payment Network (Mada) cards.

Attached is the updated version of the technical and operational procedures document for banks wishing to implement this service and offer it to their customers. Emphasis is placed on the importance of adhering to the content of the document. For more information and coordination regarding this service, please contact the Mada team via the website (mada.com.sa).

Based on the Saudi Arabian Monetary Authority Law issued by Royal Decree No. 23 dated 23/5/1377 H and the Banking Control Law issued by Royal Decree No. M/5 dated 22/2/1386H, and based on Cabinet Resolution No. 59 dated 28/3/1420 H which empowered SAMA to grant licenses for issuing All Electronic Bank Cards in addition to SAMA Circular No. (341000076614) dated 20/6/1434 H issuing the SPAN Operating Rules and Regulations, and the subsequent workshops with banks to discuss the draft POS Service Level Agreement.

Please find attached the Point of Sale Service Level Agreement (POS-SLA) aimed at improving the service provided, which is one of the main electronic channels to reduce cash handling in the retail sector, and SAMA hopes that banks will do the following:

Apply the accompanying agreement to the POS service as of 1/3/2015 G, and adhere to it and any updates from time to time.
Print and sign two (2) Arabic copies by the bank's CEO or his representative and return them to SAMA within a period not exceeding two weeks from the date of this report. (Attachments - Arabic and English version of the POS Service Level Agreement on a CD).

In reference to the five-year strategy for the Saudi Payment Network System (SPAN2016) and its initiatives aimed at enhancing the efficiency and quality of point-of-sale (POS) service in the local market to increase electronic payments, one of which includes developing specific service standards to improve the user experience for cardholders and merchants, particularly with the launch of the new identity of the Saudi Payments Network, "MADA".

We inform you of the development of the Mada Service Standards Document for Point of Sale (POS) (attached: a copy of the document on CD), after sharing it with local banks during the development stages. This document includes the following:

The implementation of these standards will contribute to enhancing the service level and increasing its adoption by bank cardholders and merchants. This is considered one of the key pillars of the Saudi Payments Network strategy, which supports the expansion and use of Point of Sale (POS) systems as an alternative electronic channel to cash. Therefore, SAMA requests directing the bank's specialists to adhere to the following:

1. Begin implementing the accompanying POS Service Standards Document.
2.  Provide SAMA with the bank's timeline for full compliance with these standards using the template available in the document (outlined in Appendix I). The timeline must be submitted within two weeks from this date.
3. Submit monthly reports to SAMA – within the first five working days of each calendar month starting from November 2014 – detailing the bank's performance using the template available in the document (Appendix I).
4. Send the bank's timeline and all monthly reports to SAMA via email address at:  bd.btd@sama.gov.sa.  with the subject line formatted as: Bank Name: MADA PoS Standard – Progress Update.

 For inquiries, you can contact SAMA.

Based on the Banking Control Law issued by Royal Decree No. M/5 dated 22/02/1386 H, and with reference to the powers vested to SAMA under the Minister Council Decision  No. (226) dated 2/5/1440 H, confirming that it is the competent authority to operate, monitor and supervise payment and financial settlement systems and services in the Kingdom, and may issue rules, instructions and licenses according to the standards it applies in this regard, and based on Article III of the Payment Services Providers Regulations , which stipulates that "invites or induces a person located in the Kingdom to enter into, or offer to enter into, an agreement in relation to a Payment Service, or markets or otherwise promotes any Payment Service is considered a practice of payment services in the Kingdom and requires obtaining a license from SAMA; and according to what is stipulated in Article Eight of the regulations, regarding the obligation to put in place policies and procedures for detecting fraud cases and handling them, in addition to informing the relevant authorities in the State and notifying SAMA in according to the format specified by it.

SAMA would like to emphasize the importance of verifying the effectiveness of the procedures in place to comply with the 'Know Your Customer' (KYC) principle before initiating the sale or operation of point-of-sale (POS) devices. The entity entrusted with the marketing and  the devices must be licensed by SAMA. Additionally, it is important to verify the comprehensiveness and appropriateness of the internal policies and procedures set by the company for all categories of customers benefiting from these services. These policies should include the identification of potential risks and the mechanisms for monitoring, managing, and reporting them. Furthermore, we emphasize the importance of ensuring that the POS terminal is only linked to the customer’s bank account and that transfers to another person’s account are not accepted.