Authorization Letter For Card Giving Permission Template for Saudi Arabia

When you need to allow someone else to use your banking or credit card in Saudi Arabia, you must create a formal Authorization Letter for Card Giving Permission. This document ensures compliance with SAMA Banking Control Law and provides legal protection for both you and the authorized user while maintaining adherence to Islamic banking principles.

When do you need this document?

You'll need this authorization letter in several common situations. Business owners frequently use it to allow employees to make company purchases with corporate cards. Families often require it when authorizing relatives to use cards for household expenses or emergency situations. If you're traveling abroad or temporarily unable to access your accounts, this document enables trusted individuals to handle necessary transactions on your behalf. International students studying in Saudi Arabia may need their parents to authorize card usage, while expatriate workers might authorize family members back home to access funds through their Saudi-issued cards.

Key legal considerations

Your authorization letter must clearly define the scope of permissions, including transaction limits, specific merchant categories, and the duration of authorization. Under SAMA regulations, you remain fully liable for all transactions made by the authorized person, making it crucial to establish clear boundaries and accountability measures. The document should include provisions for immediate revocation of authorization and specify whether the authorized person can make cash withdrawals, online purchases, or only in-person transactions. You must also consider Islamic banking compliance requirements, ensuring that any transactions align with Sharia principles if using Islamic banking products. Include security measures such as requiring the authorized person to present identification and limiting authorization to specific time periods or transaction amounts.

Legal requirements in Saudi Arabia

Saudi Authentication Law requires proper documentation verification, often necessitating notarization or official stamps from recognized authorities. Your authorization letter must include complete identification details for both parties, including Saudi ID numbers or Iqama numbers for expatriates. SAMA Consumer Protection Principles mandate clear disclosure of all terms and conditions, including the authorizer's continued responsibility for all transactions. The document typically requires witness signatures and may need authentication from your bank or a government authority. Some banks may require additional verification procedures, such as in-person confirmation or biometric authentication. Keep copies of all documentation and ensure the authorized person carries proper identification along with the authorization letter when using your card. Banks may also require periodic reconfirmation of the authorization arrangement, particularly for long-term delegations.