Article 8 of the Saudi Payments and Payment Services Law
المادة 8 من نظام المدفوعات وخدماتها
Requires operators of payment systems and providers of their services to give access on fair commercial terms, keep customers' funds separate from their own, and keep data confidential.
Official text (Arabic)
This article has not been amended since the law was issued.
يلتزم مشغلو نظم المدفوعات ومقدمو خدمات المدفوعات -وفقاً لما تفصله اللوائح- بالآتي:
1- إتاحة الاستفادة من النظم والخدمات على أسس تجارية مناسبة وعادلة.
2- فصل الأموال العابرة من خلالهم -لمصلحة الأعضاء والعملاء والمستهلكين- عن أموالهم.
3- المحافظة على سرية معلومات وبيانات الأعضاء والعملاء والمستهلكين.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 8 explained in plain English
This article places three basic obligations on every operator of a payment system and every provider of payment services, which the regulations detail:
- Fairness of access: use of the systems and services must be on appropriate and fair commercial terms.
- Separation of funds: funds passing through them for the benefit of members, customers and consumers must be kept separate from their own funds. Money that passes through the company for the account of others is not mixed with its own.
- Confidentiality: keeping the information and data of members, customers and consumers confidential.
These obligations directly protect those who deal with payment companies. A customer under Article 1 is a person who obtains payment services or uses their systems, and a consumer is the person for whom the final benefit of them is intended. The text states the obligations; how they apply is found in the regulations.
This article works together with Article 7, which gives the Central Bank the power to set the procedures and measures needed to protect the funds and data of customers, consumers and members, and their rights. Anyone who believes a service provider has breached these obligations in his case would do well to consult a lawyer specializing in banking and finance and payment systems.
Practical example
Noura keeps a balance in an electronic wallet offered by a licensed company in Riyadh. This balance is funds passing through the company for her benefit, so the company must keep it separate from its own funds and keep the confidentiality of Noura's data and transactions.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 8 of the Saudi Payments and Payment Services Law
May a payment company mix customers' funds with its own?
No. The article requires it to keep the funds passing through it for the benefit of members, customers and consumers separate from its own funds, as the regulations detail.
Are payment companies bound to keep customer data confidential?
Yes. Among their stated obligations is keeping the information and data of members, customers and consumers confidential.
Must the fees and terms of payment services be fair?
The article requires use of the systems and services to be on appropriate and fair commercial terms, and the details are set by the regulations.
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The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.