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1.1.1. Acceptance

No: م أ ق/15631 Date(g): 2/5/2012 | Date(h): 11/6/1433 Status: In-Force

Effective from Jan 31 2025 - Jan 30 2025
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Prepaid payment services within these regulatory rules can be used across a range of different acceptance models, or prepaid payment service programmes. These are:

 

Closed loop prepaid Payment Services2. A closed loop prepaid payment service is a prepaid product that is redeemable at a single merchant or at an affiliated group of merchants with the same name, mark, or logo3. The payment device is purchased on a prepaid basis and is honoured upon presentation at such single merchant or affiliated group of merchants. Closed loop prepaid products may or may not be reloadable.

Examples of closed loop prepaid products are:

 

i. Merchant branded gift cards

ii. Merchant branded store cards

 

Restricted loop prepaid payment services: A restricted loop prepaid payment service is a prepaid product that is used to acquire goods and services at a limited network of service providers (e.g. fuel stations), either within a clearly limited area or alternatively that can be used to pay for a limited range of goods and services. Restricted loop payment products may or may not be reloadable.

Examples of restricted loop prepaid products are:

Prepaid payment services that are accepted at different merchants located within a clearly defined area such as shopping cards or mall cards. Other examples include University or campus payment devices, Conference cards, Stadium cards, and other cards that are only accepted within a specific closed venue;

Prepaid payment services that are accepted at different merchants, located in different locations but that can only be used to purchase a limited range of goods and services such as Petrol cards, Meal vouchers or Public transport cards4.

 

C. Open loop prepaid payment services. Open loop prepaid products are payment instruments that are redeemable at all merchants or service providers where the payment brand is accepted without restrictions.

Open loop prepaid products may or may not be reloadable.

 

 

 

 

 

 

 

 

 

 

 

 


2 While closed loop prepaid payment services may be issued under these Rules in the Kingdom of Saudi Arabia, it is not anticipated that they will form the bulk of the programmes on offer

3 Where the prepaid payment service can be used to purchase or access a range of goods or services that are not predetermined at the time the prepaid account is loaded with value (e.g. airtime)

4 For example, transport cards that are accepted by transportation companies (cars, trains and others).