Rules for Dealing with E-Commerce Payment Service and Support Providers
| No: 42080528 | Date(g): 27/6/2021 | Date(h): 18/11/1442 | Status: Superseded |
Translated Document
Based on the powers vested in SAMA under the Saudi Central Bank Law issued by Royal Decree No. M/36 dated 11/4/1442 H, the Banking Control Law issued by Royal Decree No. M/5 dated 22/22/1386 H, and Cabinet Decision No. (226) dated 2/5/1440 H, emphasizing the competence of SAMA to control and supervise the payments and financial settlement sector and its services in the Kingdom, and based on Article 5 of Payment Service Providers Regulations issued under Circular No. (41071360) dated 27/12/1441 H which defines the activities falling within the scope of payment services, and referring to Circular No. (391000075005) dated 02/07/1439 H regarding the availability of online purchase service via MADA bank cards to target new sectors within the fields of e-commerce and in line with what serves the Kingdom's aspirations within Vision 2030 regarding digital transformation, and given the diversity of business models of companies that provide e-commerce payment services, including linkage services and technical support for payment operations, SAMA would like to clarify the following:
First: Activities and services that require the opening of a pooled account for the purpose of depositing and keeping the funds of the customers of payment service providers are considered as one of the services defined within the scope of payment services as stipulated in Article (5-1) of Payment Services Providers Regulations, and companies practicing these services must obtain a license from SAMA and meet the requirements stipulated in the rules.
Second: Linking and technical support services for e-commerce payments operations Payment Technical Service Provider (PTSP) is considered a support service for payments services, and does not require a license from SAMA at this time, and companies practicing these services must obtain all necessary technical permits from Saudi Payments Company, and their services provided are limited to linking and technical support only, and do not include the following aspects:
| - | Directly contracting with merchants, registering them, carrying out matching procedures and verifying the validity of the merchant's data and information in order to fulfill KYC requirements and requirements related to AML/CFT and Counter-Fraud. | |
| - | Finalizing the financial settlement procedures and depositing the funds in the merchant's bank account. Accordingly, SAMA would like to emphasize the following: | |
| 1. | Banks are required to deal only with companies that are licensed to provide payment services, and to notify SAMA immediately if they discover that an unlicensed company is providing any payment services. | |
| 2. | Banks, and payment service providers may contract with companies practicing linkage and technical support services for e-commerce payments, after verifying that they have obtained all necessary technical licenses from the Saudi Payments Company and taking into account the Rules on Outsourcing and related instructions and controls, including the operational and technical requirements of the MADA system and the MADA Fee Guide. |
For information and action accordingly as of /01/01/2022G, and to provide the Payments Systems and Companies Supervision Department with the procedures that have been adopted in this regard via email (PSCC@SAMA.GOV.SA).