“Adequate Notice”: Notice to a Cardholder that set forth clearly the pertinent facts so that the Cardholder may reasonably be expected to have noticed it and understood its meaning. The notice may be given by Guaranteed Communication Means reasonably assuring receipt by the Cardholder.

“Advertisement”: A commercial message in any medium that promotes, directly or indirectly, a Credit or Charge Card product.

“Annual Percentage Rate or APR”: The discount rate at which the present value of all payments and instalments    that    are    due from the    Cardholder,
representing    the    total amount    payable by the Cardholder, equals the present value of all payments of the Amount of Credit available to the Cardholder on the date on which the Credit amount is available to the Cardholder, calculated in accordance with Annex 1.

“Authenticated Communication”: Cardholder instructions received through recorded, verifiable and retrievable medium either paper, electronic or verbal.

“Billing Cycle”: The interval between the days or dates of regular periodic statements. These intervals shall be equal and no longer than a quarter of a year. An interval will be considered equal if the number of days in the cycle does not vary more than four days from the regular day or date of the periodic statement..

“Business Card”: shall mean a Credit or Charge Card issued for the purposes of purchasing goods or services on behalf of a Corporate Entity, where the Corporate Entity bears liability for all amounts charged to the Credit or Charge Card.

“Business Day”: A day on which the Card Issuers are open for business to the general public.

“Calendar Day”: Any day in a month, including weekends and holidays and based on the official calendar of Saudi Arabia: Umm Alqura Calendar.

“Card Association”: shall mean VISA, MasterCard, American Express, Union Pay and Diners Club or similar institutions. Also known as “Payment Systems Operators”.

“Cardholder”: shall mean (a) a holder, or an applicant to become a holder, of a Credit or Charge Card issued by the Issuer or (b) a holder, or an applicant to become a holder who has agreed with the Issuer to pay all obligations arising from the issuance of a Supplementary Credit or Charge Card to a Designated Individual. He/She is the Primary Cardholder. A Cardholder may be a natural person or a Corporate Entity as applicable.

“Card Issuer”: An authorized entity that issues a Credit or Charge Card.

“Card Limit”: The credit line made available to a Credit or Charge Cardholder under a Credit or Charge Card Agreement.

“Cash Advance”: a transaction to withdraw cash by the Cardholder against his/her Credit or Charge Card Limit. A Cardholder receives a Cash Advance when they:

• Withdraw cash from an ATM.
• Withdraw cash from any other source.
• Make a wire transfer.
• Receive any other mode of cash advance as stipulated by the Card Issuer.

“Charge Card”: a card similar to a Credit Card but one that requires the Charge Card holder to repay the full outstanding amount upon receipt of the account statement or on the due date as per the account statement.

“Corporate Card”: shall mean a Credit or Charge Card issued to an employee or Officer of a Corporate Entity where, under the terms of use of the card:

“Corporate Entity”: shall mean a corporation, partnership or sole proprietorship,

“Credit”: the right to defer payment of debt or to incur debt and defer its payment. Credit is extended by a Card Issuer under a plan in which:

“Credit Bureau”: A licensed national credit bureau offering consumer and commercial credit information services to respective members in the Kingdom of Saudi Arabia.

“Credit Card”: shall mean a card which is issued by an Issuer in association with Credit Card Associations. The card so issued is used by a card holder to obtain in advance, by virtue of the Issuer’s credit, money, goods, services or other benefits from businesses accepting this card domestically and internationally, and repay the relevant indebtedness thereafter or in accordance with other arrangements. This definition includes Corporate Cards and Business Cards but does not include other types of cards issued such as Debit cards, ATM cards and/or pre-paid cards.

“Credit or Charge Card Agreement”: means an agreement for a Credit or Charge Card between the Card Issuers (as licensed and authorized by Saudi Central Bank) and a "Cardholder".

“Default”: any breach of the terms and conditions of the Credit or Charge Card Agreement and the non-payment by a Cardholder of his/her monthly instalment for 90 Calendar Days from its due date.

“Default Notice”: a notice from a Card Issuer to a Cardholder notifying the Cardholder that he is delinquent in payments.

“Designated Individual”: a natural person who has been nominated by a Cardholder to be a holder, or an applicant to become a holder, of a Supplementary Credit or Charge Card issued at the Primary Cardholder’s instructions.

“Fraud”: a deliberate act to dishonestly obtain a benefit (e.g. money, a product or a service).

“Grace Period”: the date by which, or the period within which, any Credit extended for purchases may be repaid without incurring a Term Cost. If a Grace Period is provided, that fact must be disclosed. If the length of the Grace Period varies, the Card Issuer must disclose the range of days or the minimum number of days in the Grace Period, if the disclosure is identified as a range or minimum.

“Gross Salary”: basic monthly salary (less GOSI and pensions contributions) plus all fixed allowances paid to the Cardholder by the employer on a monthly basis.

“Guaranteed Communication Means”: registered mail, hand delivery, and any recorded, verifiable and retrievable electronic medium.

“Initial Disclosure”: the information required to be provided to the Cardholder by a Card Issuer upon opening a Credit or Charge Card account.

“Optional Feature”: features and services which are not part of the standard features or services of the Credit or Charge Card product, requiring payment of additional fees or term cost by the Cardholder.

“Outsourcing”: an arrangement under which a third party (i.e. the service provider) undertakes to provide to a Card Issuer a service previously carried out by the Card Issuer itself or a new service to be launched by the Card Issuer. Outsourcing can be to a service provider in Saudi Arabia or overseas and the service provider may be a unit of the same Card Issuer (e.g. head office or an overseas branch), an affiliated company of the Card Issuer’s group or an independent third party and is subject to the requirement to fully comply with Saudi Central Bank Rules on Outsourcing.

“Primary Cardholder”: a person in whose name a Credit or Charge Card Account is maintained.

“Profit Rate”: applies to credit extended under Sharia Compliant contracts. It means the rate used to derive profits and is expressed as an annual percentage rate ‘APR’.

“Risk”: the potential of any activity to damage the Issuer entity.

“Central Bank”: the Saudi Central Bank.

“Satisfactorily Resolved”: resolution of the error/dispute in accordance with the procedures and timeframes for resolving disputes.

“Term Cost”: the amount of the Term Cost payable by the Cardholder and it may be represented as a fixed or variable percentage of the outstanding balance on the Credit card account.

“Unauthorized Use”: the use of a Credit or Charge card by a person, other than the Cardholder, who does not have actual, implied, designated or apparent authority for such use, including card skimming.