Saudi Central Bank Cuts Banking and Payment Fees | A New Era for Saudi Payments

In December 2025, the Central Bank of Saudi Arabia (CBSA) re-initiated the regulatory effort with the issuance of the Financial Institutions Services Fees Guide, aiming to reshape the landscape for banks and payment service providers in charging customers across the Kingdom. 

This new regulatory regime replaced the old banking fee structure with the intent of providing more favorable fee levels and clearer fee caps, while also standardizing pricing across a wide set of retail banking and payment services in Saudi Arabia.

Overall, this reform is a major step toward strengthening transparency, increasing affordability, and improving access to the financial system of Saudi Arabia. More importantly, this is a signal of the commitment of the Saudi Central Bank to reinforce consumer protection while aiding a full transition toward digital financial services.

The Strategic Role of the Saudi Central Bank in Banking Reform

The Saudi Central Bank, also known as SAMA, is the agency that regulates all banks, financing companies, and payment service providers working in the Kingdom. Besides monetary policy, SAMA protects customer interests, promotes financial stability, and cultivates the national payments ecosystem.

Through this new Fees Guide, SAMA is taking specific and direct steps to regulate pricing practices affecting everyday banking and Saudi payments. With clear disclosures complemented by fee caps, it intends to foster a culture of competition and assist consumers.

Objectives of the New Fees Guide

The updated framework issued by the Saudi Central Bank is built around several strategic goals.

Promoting Fair and Reasonable Pricing

The guide establishes maximum fee limits for many common banking and Saudi payments services. This prevents excessive charges and ensures customers are treated fairly across financial institutions.

Enhancing Transparency and Disclosure

Payment service providers and banks should now communicate their fees in a clearly defined and standardized manner to allow customers to see costs upfront and compare services more easily.

Supporting Financial Inclusion

By reducing the costs of basic banking services and digital transactions, the Saudi Central Bank aims to encourage more people and small businesses to participate in the formal financial system.

Accelerating Digital Saudi Payments

Lower fees on electronic transfers and card transactions are designed to promote cashless behavior and strengthen the adoption of Saudi payments across the economy.

Key Fee Reductions and Changes

The new Fees Guide introduces meaningful reductions across several categories of banking and payment services.

Administrative and Financing Fees

Administrative fees related to consumer and motor financing have been reduced significantly. The maximum allowable fee is now capped at 0.5 percent of the financed amount or SAR 2,500, whichever is lower. This change lowers upfront borrowing costs and makes financing more accessible.

Payment Card and Transaction Fees

Within the Saudi payments ecosystem, the guide introduces new caps on card-related charges:

• Mada card re-issuance fees are capped at SAR 10
• International purchase fees using Mada cards are capped at 2 percent
• International cash withdrawals are capped at 3 percent, subject to a maximum fee
• Dispute-related fees are capped at nominal amounts

These measures make card-based Saudi payments more predictable and affordable for both consumers and businesses.

Digital Transfers and Electronic Payments

To encourage the use of digital channels, the Saudi Central Bank has standardized domestic transfer fees:

• Transfers up to SAR 2,500 are capped at SAR 0.5
• Transfers between SAR 2,500 and SAR 20,000 are capped at SAR 1

These changes reduce friction for everyday Saudi payments and support the transition away from cash.

Checks and Standing Orders

Traditional banking services have also benefited from fee reductions:

• Issuing a bank check now costs SAR 5
• Copies of older checks are capped at lower fees
• Standing order setup fees have been reduced
• Standing order cancellation is now free

These updates ensure that customers using conventional payment methods are not left behind.

Account Statements and Documents

Many account-related services are now free or heavily subsidized, especially when it comes to digital access. Customers can get their latest account statements and certificates, free of cost, through electronic channels, which further strengthens the adoption of the digital way.

Impact on Saudi Payments Adoption

The Saudi Central Bank’s reforms are expected to speed up the acceptance of Saudi payments by making digital transactions cheaper and easier for people. Reduced fees remove one of the critical obstructions that previously dissuaded individuals and small businesses from using electronic means to transact.

The more affordable and transparent costs will encourage more users to adopt bank transfers, cards, and digital wallets. This, in turn, supports the infrastructure for enhanced payments and cultivates a more efficient cash-light economy.

Implications for Banks and Payment Providers

While the new fee caps may reduce certain short-term revenue streams, the Saudi Central Bank’s strategy focuses on long-term growth. Increased transaction volumes, broader customer participation, and higher usage of Saudi payments are expected to offset reduced per-transaction fees over time.

The standardized fee regime affords a level playing field for fintech and payment service providers. It lowers the costs of transactions, making it easy to scale innovative Saudi payment solutions with effective competition against traditional banking services.

Alignment With Vision 2030

The new Fees Guide ties closely with Saudi Arabia’s Vision 2030 in digital transformation, financial inclusion, and private-sector growth. By strengthening the regulatory basis for Saudi payments, the Saudi Central Bank is paving the way for a modern and resilient financial ecosystem.

Digital payments are a key enabler of e-commerce, support for SMEs, and foreign investment attraction. The reforms cement Saudi Arabia’s aspirations to be the regional leader in financial services and fintech innovation.

Implementation and Compliance Timeline

A transition period has been allowed for the financial institutions to update systems, revise pricing schedules, and adjust customer disclosures as demanded by the new requirements. The Saudi Central Bank thus looks forward to full compliance within the stipulated timeframes and would closely monitor implementations therein.

Clear communication of fees to customers by way of proper disclosure is imperative to satisfy regulatory expectations and maintain their trust.

Conclusion

The new Financial Institutions Services Fee Guide of the Saudi Central Bank marks great progress in the Kingdom’s banking and Saudi payments landscape. These aforementioned measures have now reduced fees, standardized pricing, and enhanced transparency, thereby laying a firm ground for consumer protection and digital advancement.

As Saudi payments continue to evolve, these reform measures will go a long way toward earning trust, increasing accessibility, and ensuring sustainable growth for the whole financial sector. The initiative thus represents yet another step in the commitment of the Saudi Central Bank to build a just, efficient, and future-fit financial system for the Kingdom.