Central Bank of Kuwait bans extra fees on card payments
The Central Bank of Kuwait has directed all local banks, electronic payment service providers, and e-money service providers to prohibit merchants from charging customers additional fees when using KNET debit cards or credit cards through electronic payment channels, including payment gateways and point-of-sale (POS) devices.
This decision follows complaints from consumers who were being asked to pay extra charges for card transactions. To strengthen its supervisory role and safeguard customer rights, the Central Bank has mandated the inclusion of explicit clauses in merchant agreements, ensuring that final beneficiaries within Kuwait cannot be charged any additional amounts for electronic payments.
Key directives issued by the Central Bank include:
- Mandatory Clause in Agreements – All contracts with merchants must explicitly state that no additional fees can be imposed on customers using electronic payment methods.
- Enforcement of Compliance – Service providers must take action against violators, including suspending services if necessary.
- Review and Update of Contracts – Existing agreements with merchants must be revised to align with these requirements within one month.
The Central Bank also confirmed it will monitor compliance closely and suspend services for any entities that continue to violate the rules.
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