Auto Payment Contract Template for Saudi Arabia

The Auto Payment Contract serves as a foundational document for establishing recurring payment arrangements in Saudi Arabia, essential for businesses and individuals seeking to automate their regular payment obligations. This document is particularly relevant in today's digital banking environment, where automated payments have become increasingly prevalent. The contract must comply with Saudi Arabian banking regulations, including SAMA guidelines, Electronic Transactions Law, and Sharia principles. It is typically used when setting up recurring payments for services, subscriptions, or installment plans, providing legal protection for both the payment service provider and the customer. The document includes crucial elements such as payment terms, processing protocols, security measures, and customer rights, while ensuring all automated transactions are conducted in accordance with Saudi Arabian banking and consumer protection laws.

1. Parties: Identification of the payment service provider and the customer, including full legal names and contact details

2. Background: Context of the agreement and relationship between parties

3. Definitions: Definitions of key terms used throughout the contract

4. Payment Authorization: Express authorization from the customer for automatic debits, including scope and limitations

5. Payment Terms: Specific details about payment amounts, frequency, and timing

6. Duration and Renewal: Term of the agreement and conditions for renewal or extension

7. Modification and Cancellation: Procedures for modifying payment details or canceling the auto payment arrangement

8. Customer Obligations: Customer responsibilities including maintaining sufficient funds and updating account information

9. Service Provider Obligations: Provider's responsibilities regarding payment processing, notifications, and service standards

10. Security and Data Protection: Measures for protecting customer data and financial information

11. Fees and Charges: Any fees associated with the auto payment service

12. Dispute Resolution: Procedures for handling payment disputes and errors

13. Governing Law and Jurisdiction: Specification of Saudi Arabian law as governing law and relevant jurisdiction

14. Execution: Signature blocks and execution requirements