| (1) | Notwithstanding the provision of Paragraph (8) of this Article and Paragraph (1) of Article 79 of the Implementing Regulation, where an executed Payment Transaction was not authorized correctly, the Payment Service Provider must refund the amount of the Unauthorized Payment Transaction to the Payer and, where applicable, restore the debited Payment Account to the state it would have been in had the Unauthorized Payment Transaction not taken place.
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| (2) | The Payment Service Provider must provide a refund to the Payer by crediting a Payment Account under Paragraph (1) of this Article as soon as practicable and in any event no later than the end of the business day following the day on which it becomes aware of the unauthorized transaction.
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| (3) | Paragraphs (1), (2) and (6) of this Article do not apply where the Payment Service Provider has reasonable grounds to suspect fraudulent behavior by the Payment Service User and notifies SAMA (and any other competent authority in the Kingdom) of those grounds in writing.
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| (4) | When providing a refund through crediting a Payment Account under Paragraph (2) of this Article, a Payment Service Provider must ensure that the date on which the amount of a Payment Transaction is credited to a& Payee’s Payment Account is no later than the date on which the amount of the Unauthorized Payment Transaction was debited.
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| (5) | Where an Unauthorized Payment Transaction was initiated through a Payment Initiation Service Provider, the Payment Account Service Provider must comply with Paragraph (1) of this Article, and if the Payment Initiation Service Provider is liable for the Unauthorized Payment Transaction (in relation to which see Paragraph (4) of Article 79 of the Implementing Regulation), the Payment Initiation Service Provider must, on the request of the Payment Account Service Provider, compensate the Payment Account Service Provider immediately for the losses incurred or sums paid including the amount of the Unauthorized Payment Transaction.
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| (6) | Notwithstanding the provisions in Paragraphs (1),(2),(3),(4),and (5) of this Article, the Payment Service Provider must notify the Payment Service User of the conclusion of an investigation and must pay any refund or monetary compensation due to a Payment Service User within seven days of from the completion of any investigation of an error or a complaint by the Payment Service Provider, or on receipt of an instruction from any competent authority in the Kingdom. In case of a delay in payment of any refund or compensation, the Payment Service Provider should notify the Payment Service User of the expected time for crediting the amount due, along with a justification for the delay.
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| (7) | A Payment Service Provider must hold records on the processing of refunds or monetary compensation, including those referred to under Article 87 and Article 88 of the Implementing Regulation, response timelines and reasons for delays, for a period of ten years from the date of the conclusion of an investigation. Additionally, a Payment Service Provider must submit such records to SAMA on an on-going basis, as specified by SAMA, and must record such refunds against the original transaction with the original transaction sequence number.
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| (8) | A Payment Service User is entitled to a refund under this Article if it notifies the Payment Service Provider without undue delay, and in any event no later than six months after the debit date, upon becoming aware of any Unauthorized Payment Transaction, except where the Payment Service Provider has failed to provide the information concerning a Payment Transaction required by Part 6. |
