Based on the Banking Control Law issued by Royal Decree No. M/5 dated 22/2/1386 AH, and the powers granted to the Central Bank to apply the provisions of the Banking Control Law under the decision of the Minister of Finance No. 3/2149 dated 14/10/1406 AH, and with reference to the updated regulations for issuing and operating credit cards and charge cards as communicated under Circular No. 361000090389 dated 26/6/1436 AH, and the Central Bank’s instructions as communicated under Circular No. 19901/M AT/9006 dated 18/4/1432 AH regarding the provision of instant notification services via SMS messages.

We inform you that all banks operating in the Kingdom must adhere to the following when processing financial refund transactions for bank cards:

First: Credit Cards

1. Process and settle financial refund transactions within three working days from the date of receiving the transaction in the acquirer bank's system.
2. Process and settle financial refund transactions to credit card accounts within three working days from the date of receiving the transaction in the issuer bank's system.
3. Notify customers via SMS immediately upon crediting the refund amount to the card account.

Second: Debit Cards (Mada)

1. Process and settle financial refund transactions immediately upon receiving the transaction in the acquirer bank's system.
2. Process and settle financial refund transactions to the card account immediately upon receiving the transaction in the issuer bank's system.
3. Notify customers via SMS immediately upon crediting the refund amount to the account linked to the card.

Please take note and act accordingly as of 01/01/2020.