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2.12 Merchant Dispute Resolution for Prepaid Payment Services

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

Effective from Jan 31 2025 - Jan 30 2025
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The prepaid dispute resolution process is as defined in the SPAN Scheme Standard. For avoidance of doubt these are as follows.

2.12.1 Merchant Dispute Resolution

a. The term “statement error” represents a posting to the merchant’s account which gives rise to an error in the overall balance. Statement errors include:
 
 
 		1)A failure by the Operator to credit or debit properly a transaction to the merchant’s account;
 
 
 		2)An error of computational or accounting nature that is made by the acquirer, so that a charge is either over or under stated, including application of fees or penalty charges that are not in accordance with the Terms and Agreement in force.
 
b.A statement error notice is a written or oral message from the Merchant that:
  
 
 		1)Is received by an Operator at the address or telephone number provided in the Terms and Conditions in force no later than 90 days from the transaction date;
 
 
 		2)Enables Operator to identify the merchant’s name and account number, and, to the extent possible, indicates the merchant’s reasons for believing that a statement error exists, the type of error, the date and amount of the error.
 
c.The Operator (bank) shall handle statement errors as follows:
 
 
 		1-Once the Operator receives a complaint from merchant, the operator has to inform the customer by either an oral or a written message of the process by which the bank will deal with the statement error;
 
 
 		2-The Operator shall conduct a reasonable investigation and comply with the appropriate resolution procedures no later than 30 working days, after receiving a statement error notice;
 
 
 		3-If the Operator determines that a statement error occurred as asserted, it shall correct the statement error and credit or debit the merchant’s account with any disputed amount and related commission or other charges and mail or deliver by other means a correction notice to the merchant;
 
 
 		4-If an Operator determines that a different statement error occurred from that identified in the statement error notice, the Operator shall inform the merchant with an explanation of the reasons for the bank’s belief that a different statement error occurred and the reasons for the belief that the statement error alleged by the merchant is incorrect, correct the statement error and credit or debit the merchant’s account with any erroneous amount and related commission or other charges as applicable; and provide the merchant with the relevant documentary evidence if the merchant so requests;
 
 
 		5-If an Operator determines that no statement error occurred the Operator shall mail or deliver by other means to the merchant an explanation of the reasons for the bank’s belief that the statement error alleged by the merchant is incorrect, furnish copies of documentary evidence, if the merchant so requests.
 
  6- The Operator has to resolve the issue within these 30 working days from the date of receiving the complaint. If the bank does not, then the following will occur:
 
 
 		  a)the bank will be liable to be penalized;
 
 		  b)the bank has to repay the customer (the merchant) the disputed amount;
 
 
 		  c) close this case in the bank system;
 
 
 		7-The complainant (merchant) retains the right to escalate the complaint to SAMA, if unsatisfied with the bank’s treatment of the complaint;
 
 
 		8-The complainant (merchant) retains the right to escalate the complaint to the Committee for the Settlement of Banking Disputes (CSBD), if unsatisfied with SAMA's and the bank’s treatment of the complaint.
 
 
 		9-A bank that has fully complied with the requirements described in this section has no further responsibilities if a merchant reasserts substantially the same statement error.