There are several types of payment cards issued by banks, but the most common cards are:1. Debit card (ATM card): this card allows a person to directly debit an amount from his current account to pay to a vendor. It can be obtained after opening an account with a bank. The bank issues the card for the customer and links it to his/her account. The customer cannot use it for cash withdrawal from ATMs or POS terminals unless the balance of the account is in a credit position. 2. Credit card: is the card banks issue for their customers in cooperation with international payment companies e.g. Visa, MasterCard, American Express etc. The holder of the card can use it to carry out cash withdrawal transactions or pay the value of his/her purchases at commercial centers accepting this type of card and he/she can repay the amount later. The customer may repay the total amount or repay the prescribed minimum amount, which ranges between 3 percent to 6 percent of the total amount, and, consequently, an interest rate will be added to the remaining amount according to the agreement with the bank issuing the card.3. Debit card is the card issued by banks for their customers in cooperation with international payment companies e.g. Visa, MasterCard, American Express …etc.. The holder of the card can use it to carry out cash withdrawal transactions or pay the value of his/her purchases at commercial centers accepting this type of card. This card is different from a credit card since the customer is required to repay the total due amount immediately upon receiving an account statement. There are other types of cards, but they are less common and are rarely used, such as prepaid cards, smart cards and corporate cards.

One of the reasons behind the widespread and use of those cards at the international level is the special characteristics that these cards offer for the card holder, the vendor accepting the card, or the issuing bank. If it is maintained well and used when necessary in an elaborate way, it will offer many benefits to its holder, the most important of which are as follows: 1. An easy instrument to use and keep.2. A secure instrument that spares the trouble of carrying cash money. 3. You can use it daily to carry out any transaction. 4. All executed transactions can be reviewed and checked through obtaining a monthly account statement. 5. You can benefit from the grace period and repay after a period of 20-50 days from the execution date of the latest transaction.6. A useful financial instrument that helps in financial planning when used in a well deliberated way. 7. Many shops and centers accept those cards (some of those cards are accepted by more than 25 million shops centers at the international level).

Using a credit card in a careless way may lead to significant risks that affect the customer's credit record and his ability to repay and manage his financial liabilities. The most significant risks are as follows: 1. An easy financial instrument that encourages consumption if its use is not controlled. 2. The possibility of being used by others, especially relatives (son, daughter, husband or wife) if it is not safeguarded. The cards can be used to carry out transactions through the telephone. 3. The possibility of being lost, stolen and used by another person. 4. Paying additional amounts as fees in case of default or repaying part of the amount.5. Increased commission and interest rates linked to the use of credit cards. 6. It is considered one of the financial instruments that require ongoing monitoring, sound management and compliance with repayment dates.

Every person wishing to apply for a credit card has to make sure that he/she has an answer for the following questions: 1. Why should I have a credit card? 2. Have I understood the conditions and controls of the agreement for careful use and dealing therewith? For example, do I know the amount of the various fees, card interest rate in case of a delayed repayment, annual issuing fees, default fees, cash withdrawal fees, and fees for exceeding credit limit? 3. Can I repay every month the total amount of purchases by the credit card? Or the minimum amount only? 4. If I did repay the minimum amount, can I repay additional commissions on the existing balance? 5. What is the bank's procedure towards me in case of default?

- The Customer: is the person wishing to obtain a credit/debit card from a bank or a company licensed by SAMA. - Issuing entity: a bank or a company that issued a card for a customer upon his/her request. It has the right to monitor the transactions of the card holder even if the card was issued in cooperation with a licensed commercial shop operating at the Saudi market. - Card issuing agreement: the entity that issued the card shall give the customer a copy of the agreement to be acquainted with conditions and for his approval. The agreement items include the card interest rate and how it can be calculated, various transaction fees and rights and obligations of each party. - Account number: every credit card has a certain account number. The card holder should keep the number all the time and should not disclose it unless he ensures the good reputation and integrity of the company/ vendor he is dealing with. He should always keep the receipt/documents of the executed transactions. - Credit limit: is the total credit amount that a customer can use to carry out purchase transactions. The credit limit for every customer is determined according to several criteria. The most important of these criteria are customer's eligibility, credit record and the internal credit policy of the issuing entity. - Credit information companies: are those companies licensed to monitor credit records of individual customers through establishing a data base to gather, study, and analyze the credit conduct of customers in the Kingdom of Saudi Arabia. - Saudi Company for Credit Information (CIMA): It was established as a limited liability company, operating at the Saudi market under the supervision of SAMA to provide support to banks and companies regarding the users of banking credit services and transactions. The company manages the sources of credit data on behalf of banks/companies to enable them to use the data and help them in providing credit and managing their relationship with individual customers. - The credit report: a report issued by CIMA which is a summary of the credit history of the customer and his/her previous and current transactions. The report includes basic information about the customer, the most important of which are: 1. Customer’s personal data (name, ID number, age, address, job, income, social status…).2. Records of the enquiries made about the customer during the last five years.3. History of customer’s compliance with repayment of his/her liabilities during the last two years. 4. Default records during the last five years. The customer has the right to obtain a copy of his/her credit record from CIMA once every year to review it and ensure the correctness and accuracy of the information mentioned in it. - Commission rate: it measures the credit cost and it is a monthly percentage imposed by the issuing entity on the existing debit balances of the card. It is always recommended to repay the total due amount upon receiving the account statement to avoid paying commissions. - Annual issue fees: annual fees determined based on the type of the card to be paid by the card holder to the issuing entity. - Repayment due date: is the date upon which the card holder must repay the total balance of the card or part of it. In case of non-repayment on the specified date, delay fees will be imposed on the card holder by the issuing entity. - Cash withdrawal fees: when using the credit card to withdraw cash from the ATMs, a commission is imposed on this service. - Default charge: when the amount is not paid on the date specified in the account statement, the card issuer shall calculate a charge on default of payment.- Card activation: before activating the card, most card issuers ask the customer to contact them upon receiving the new or renewed card as a control measure to verify the customer’s ID and then the card is activated.

It is the bank you deal with. In case the matter is not settled, you can object directly at the Saudi Credit Information Company (or Saudi Credit Bureau (SCB)).

The objection must be filed along with supporting documents with the card issuer without any delay. The bank or the company that issued the card is the entity that should examine and settle the objection, and inform the customer about the conclusion.

1. Do not give your credit card to anyone and protect it at all times.2. Sign on the back of your credit card as soon as you receive it.3. Destroy obsolete or expired credit cards.4. Keep an eye on your credit card during cash withdrawals.5. Do not write your PIN on your credit card.6. Never put your PIN in your wallet.7. When you do not wish to tip waiters at restaurants and other places, you must draw a line on the assigned blank spaces of the receipt so that no one can tamper with it.8. Retain the receipt and compare it with your account statement upon arrival from the bank.9. Notify your card issuer immediately once you have found any discrepancies in your account statement or transaction that you did not make.10. When you do on-line shopping, you must deal with a well-known, reputable company or entity, and make sure that they have a Secure Sockets Layer (SSL) when you enter the data of your card.11. Request and review your credit record annually.12. Keep a list of the numbers of your credit cards as a reference when needed.13. Contact the card issuer immediately and report the lost or stolen card, then send a fax to confirm the reporting, and keep these documents.

1. Do not give your credit card to anyone and protect it at all times.2. Sign on the back of your credit card as soon as you receive it.3. Destroy obsolete or expired credit cards.4. Keep an eye on your credit card during cash withdrawals.5. Do not write your PIN on your credit card.6. Never put your PIN in your wallet.7. When you do not wish to tip waiters at restaurants and other places, you must draw a line on the assigned blank spaces of the receipt so that no one can tamper with it.8. Retain the receipt and compare it with your account statement upon arrival from the bank.9. Notify your card issuer immediately once you have found any discrepancies in your account statement or transaction that you did not make.10. When you do on-line shopping, you must deal with a well-known, reputable company or entity, and make sure that they have a Secure Sockets Layer (SSL) when you enter the data of your card.11. Request and review your credit record annually.12. Keep a list of the numbers of your credit cards as a reference when needed.13. Contact the card issuer immediately and report the lost or stolen card, then send a fax to confirm the reporting, and keep these documents.