Article [88]

Date(g): 13/6/2023 | Date(h): 25/11/1444

Status: In-Force

Effective from Jun 13 2023 - Jun 12 2023
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1.

Without prejudice to the provisions contained in the Paragraphs [2, 3 and 4] of this Article, the payment service provider responsible under Article [87] of the Regulations may request that the payer be held responsible - up to a maximum of one hundred and fifty riyals - for any losses incurred in connection with unauthorized payment transactions arising from the use of a lost, stolen or embezzled payment instrument.

2.

The provisions of the foregoing paragraph shall not apply to the following cases:

A.	If the loss, theft or misuse of the payment instrument could not be detected by the payer prior to the payment being executed, except in cases where the payer acts in a fraudulent manner.
B.	If the loss results from the act or negligence of an employee, agent or branch of the payment service provider or an entity conducting business on behalf of the payment service provider.

3.

The payer shall bear responsibility for all losses resulting from unauthorized payments in any of the following cases:

A.	The payer has acted in a fraudulent manner.
B.	The payer has intentionally breached or been grossly negligent in its obligations to maintain the security of the payment instrument and personal security features.

4.

Excluding cases where the payer acts on a fraudulent manner, the payer shall not be liable for any losses incurred in connection with unauthorized payment transactions in any of the following cases:

A.	The unauthorized payment transaction arises after the payer notifies the payment service provider of the loss, theft or exploitation of its payment instrument or unauthorized use of the payment instrument.
B.	If the payment service provider fails - at any time - to provide appropriate means to enable the payer to notify him.
C.	If the payment service provider is obligated under the provisions of the Regulations - or any regulations, rules, circulars or decisions in relation to authentication requirements issued by the SAMA - to apply certain authentication procedures to address any potential risks, and the payment service provider is not obligated to apply the same to the payer.

5.

If the provisions of the Regulations - or any regulations, rules, circulars, controls or instructions issued by the SAMA - require the application of certain authentication procedures to address any potential risks, and the payee or his payment service provider does not accept this authentication, the payee or his payment service provider, or both shall, as the case may be, compensate the payer’s payment service provider for any losses or amounts paid as a result of compliance with the provisions of the Paragraph [1] of Article [87] of the Regulations.