Company Credit Card Agreement Template for Saudi Arabia

A Company Credit Card Agreement is a comprehensive legal document that establishes the terms and conditions for corporate credit card programs in Saudi Arabia. This agreement creates binding obligations between the issuing bank, your company, and individual cardholders while ensuring compliance with Saudi Arabian banking regulations and Islamic financial principles. The document serves as the foundation for managing corporate expenses, controlling employee spending, and maintaining regulatory compliance under SAMA oversight.

When do you need this document?

You need a Company Credit Card Agreement when launching a new corporate credit card program for your employees or updating existing card arrangements to meet current regulatory requirements. This document is essential when your company wants to provide employees with payment cards for business expenses, travel costs, or operational purchases while maintaining proper oversight and control. The agreement becomes crucial when expanding your business operations across Saudi Arabia and need standardized expense management systems. You also require this document when switching banking partners or renegotiating terms with your current issuing bank to ensure continued compliance with evolving SAMA regulations and corporate governance standards.

Key legal considerations

The agreement must clearly define spending limits, authorized transaction types, and prohibited uses to prevent misuse and ensure compliance with corporate policies. Liability allocation provisions are critical, establishing whether your company or individual cardholders bear responsibility for unauthorized transactions, fraudulent activities, or policy violations. The document should include robust security protocols covering card activation, PIN management, and reporting procedures for lost or stolen cards. Payment terms must specify billing cycles, settlement obligations, and consequences of non-payment while adhering to Islamic banking principles that prohibit interest-based transactions. Privacy and data protection clauses should address how cardholder information is collected, stored, and shared in compliance with Saudi Arabian privacy regulations.

Legal requirements in Saudi Arabia

Under the Banking Control Law (Royal Decree No. M/5), all credit facilities including corporate cards must comply with SAMA's regulatory framework and obtain proper authorization from licensed financial institutions. The agreement must incorporate Shariah-compliant terms that avoid interest-based transactions and instead use profit-sharing or fee-based structures approved by the bank's Shariah board. Anti-Money Laundering Law (Royal Decree No. M/20) requirements mandate comprehensive due diligence procedures for cardholder identification, transaction monitoring systems, and suspicious activity reporting protocols. The E-Commerce Law governs electronic payment processing and requires specific security measures for online transactions and digital statements. Companies Law provisions may apply regarding authorization limits and corporate governance requirements for expense management systems, particularly for publicly traded companies or those with complex ownership structures.