As in other modern nations, Saudi Arabia is gradually shifting from cash payments to card payments. This is leading to an increase in credit card theft and fraud, and since the incidents of abuse aren’t being publicised, consumers don’t know that they should be on guard. The first case that came to attention on this subject involved an Eastern Province-based expatriate, whose credit cards had been issued on a European bank. One night the man noticed that two credit cards were missing from his wallet. He reported the theft to his bank, but it was too late. The thief had already spent SR10,000 on the credit cards.
According to the terms of the credit card agreement, the man was responsible for paying most of that money, since the charges to the cards had been made before they were reported stolen.
Reports of credit card fraud are becoming commonplace. One father explained how a supposed friend of his son had removed a credit card from his wallet and then used it to purchase mobile phones, which can be easily resold for cash. A woman forgot her credit card at a store after making a purchase. The card was used by someone else at several shops in the mall, until the card limit was reached.
In both of these cases the credit card holders were held liable for the purchases because they did not comply with the “Terms and Conditions” laid out by the respective card issuers. These terms and conditions vary widely. Many credit cards issued in the Kingdom come with the following stipulation: “The cardholder will be responsible for any unauthorized card transactions affected before written notice of the loss or theft has been received by the bank’s card center.” Some banks also demand police reports in cases of card theft.
The clerks don’t compare the signatures on the credit cards with the signatures on the receipts either, although they do keep the signed receipts. The paper receipts are only turned in to the banks if they are requested or if a bank does not deposit cash for the purchase to the merchant’s account. In this last case, the signed receipt allows the merchant to show that an approved transaction was made.