Regulatory Rules for Prepaid Payment Services in the Kingdom of Saudi Arabia

Definition of an advertisement For the purpose of this Regulatory Framework, an advertisement is a commercial message in any medium that promotes, directly or indirectly, a prepaid payment service product. 2.9.2 Minimum level of detail Advertisement shall clearly state the identity of the issuer making the disclosure (i.e. any public disclosure or communication relating to a prepaid service offering MUST identify the identity of the regulated issuer/IPM notwithstanding any other brand or title under which the service may be offered to market). The minimum level of detail should contain the name of the issuer and the bank address/phone number and specify that the account balance is held by a bank. 2.9.3 Presentation of terms Advertisement shall only state specific terms that actually are, or will be arranged or offered by the prepaid payment service issuer. The terms shall be presented as a whole with charges shown adjacent to the offer. 2.10 Statementing For prepaid payment service products requiring full KYC verification, (see section 2.3.1 ), statement preparation and delivery (either physical delivery by post or notification of electronic statement availability or through branches) must occur, at a minimum, quarterly if requested by the account holder. The statement must include all transactions credited or debited from the account. The statement shall disclose the following items: a. Charges/Fees . A disclosure of the amount, itemised and identified by type, of any charges or fees debited to the account during the statement cycle; b. Address or phone number for notice of statement errors . The address or the phone number to be used for notice of statement errors. In addition, the issuer shall, upon receipt of an enquiry from the cardholder, provide information about the remaining balance on the payment device, in any appropriate form. For prepaid payment service products that use a simpler form of KYC, (see section 2.3.2 ), there are no requirements to issue regular statements. Prepaid payment service customers will be entitled to enquire about the remaining balance on the payment device upon presentment of the payment device at PoS at a participating merchant outlet. 2.11 Cardholder Dispute Resolutions for Prepaid Services 2.11.1 Billing errors In the following the term “billing error” represents a posting to the prepaid payment service account and which gives rise to an error in the overall balance. Billing errors include: a) A transaction that is not made by the primary cardholder or by a person who has authority to use the consumer’s prepaid payment service; b) A transaction for which the primary cardholder requests additional clarification; c) A failure by the issuer to properly post a transaction onto the prepaid account; d) An error of computational or accounting nature that is made by the issuer, so that a charge is either over or understated, including application of fees or penalty charges that are not in accordance with the Terms & Conditions of the Agreement in force. 2.11.2 Billing error notice A billing error notice is an oral or written message from the primary cardholder that: a. Is received by the issuer at the call centre or address provided in the Terms and Conditions in force no later than 180 days after the transaction date of the alleged billing error; b. Enables the issuer to identify the primary cardholder’s name and account number, and, to the extent possible, indicates the primary cardholder’s reasons for believing that a billing error exists, the type of error, the date and amount of the error. c. Such billing error notice shall be taken seriously by the bank (issuer and/or acquirer).