Card Authorization Letter Template for Saudi Arabia

A Card Authorization Letter is a formal legal document that allows you to delegate payment card usage rights to another person while maintaining oversight and control. Under Saudi Arabian law, this document must comply with SAMA Banking Control Law and specific payment card operation regulations established by the Saudi Arabian Monetary Authority.

When do you need this document?

You'll need a Card Authorization Letter when granting temporary or limited card access to employees, family members, or business partners. Common scenarios include authorizing company employees to use corporate cards for business expenses, allowing family members to access your account for emergency purchases, or permitting business associates to make specific transactions on your behalf. This document is essential for international business travelers who need local representatives to handle financial transactions, and for corporate entities managing multiple authorized users across different departments or locations.

Key legal considerations

The authorization must clearly specify the scope of permitted transactions, including spending limits, merchant categories, and duration of authorization. You retain full liability for all transactions made by the authorized user, making it crucial to establish clear boundaries and monitoring procedures. The letter should include specific card details without revealing sensitive information like full card numbers, and must identify the authorized user through proper Saudi identification documents. Consider including termination clauses that allow you to revoke authorization immediately, and ensure the authorized user understands their responsibilities and limitations. Banks may require additional verification procedures, so coordinate with your issuing bank to understand their specific requirements for honoring such authorizations.

Legal requirements in Saudi Arabia

Under SAMA regulations, Card Authorization Letters must include complete cardholder identification as per Saudi ID requirements, detailed card information without compromising security, and clear authorization parameters. The document must comply with Anti-Money Laundering Law provisions, ensuring legitimate transaction purposes and proper documentation trails. Electronic Transactions Law requirements may apply if the authorization involves digital transactions or electronic signatures. Your issuing bank must be notified of the authorization arrangement, and some institutions may require the authorized user to sign acknowledgment documents. The letter should reference relevant SAMA guidelines and include provisions for compliance with Saudi Central Bank Consumer Protection Principles. Maintain copies of all authorization documents for your records, as banks may require verification during transaction disputes or regulatory reviews.