For prepaid accounts issued within the Kingdom, the closing of accounts must be conducted in accordance with the prevailing legislation.

2.15.1 Account Closure Rules for Reloadable Accounts

If a prepaid payment service account is reloadable, the following closure rules apply:

2.15.2 Disclosure:

The Issuing Programme Manager must provide the accountholder/contracting entity with appropriate methods or options to close their prepaid payment service record (account). Such options must be disclosed to the accountholder at the time of account opening.

2.15.3 Accountholder initiated closure:

The accountholder is permitted to request closure of the prepaid payment service record by advising the issuer directly at an issuers premises or branch (including mobile branches), by authenticated contact through a call centre access, or through written request for record closure to a customer service centre. The issuer must offer the accountholder a mechanism by which they can choose to either transfer any remaining balance to another account/record or withdraw the remaining balance in cash.

The prepaid card(s) associated with the record should be returned to the issuer upon record closure, to be securely destroyed. In the event the prepaid card cannot be provided to the bank during the record closure request, the card should be disabled from further use.

2.15.4 Issuer initiated closure:

Issuer (Bank) can initiate a record closure, at their discretion, after a record has been inactive for at least 180 days and in all cases after 5 years, in accordance with the SAMA ‘Rules Governing the Opening of Bank Accounts & General Operational Guidelines in Saudi Arabia’. If a positive balance remains on the record, the bank must inform the accountholder in cases where the account holder is known, in writing or by other suitable means (e.g. SMS) of their intent to close the record and give the accountholder 30 days prior notice from the date of dispatch of the intent to close.

If after this 30 day period the record remains inactive, the bank must close the prepaid record and disable the associated prepaid card(s). Any remaining balance in the record must be transferred to the Unclaimed Balances Account. Funds will remain at the Unclaimed Balances Account to support any refund in the event the accountholder or his representative was to return in the future and request their remaining funds.

2.15.5 Account Closure Rules for Non- Reloadable Accounts

If a prepaid payment service account is non- reloadable (e.g. Gift Card), the account record expires either:

• When the value on the account record has been exhausted/spent.
• When the expiry date of the card is reached.

2.15.6 Cardholder Balance Refund on Non-Reloadable Accounts

If a cardholder requests redemption of the outstanding balance on a dormant or expired card, the merchant is obliged to honor the cardholder request, upon presentation of relevant ‘proof of ownership’.

Such proof shall include:

           -   Presentation of the relevant Gift Card

           -   A receipt that may have been issued by the Merchant or Card Issuer at the point of buying such card or alike.

Upon presentation of such proof, the cardholder shall be entitled to reimbursement of the ‘net outstanding balance’⁽⁶⁾ on the account. Such reimbursement may be by way of:

            -    A re-issued gift card for (at least) the net outstanding balance

            -    Bankers cheque

            -    Cash

⁽⁶⁾ The net outstanding balance shall be deemed to be the value outstanding on the card following the last recorded purchase transaction, less any legitimate issuer fees (see 2.8.9) that may be applicable up to the time of the ‘redemption’ request.