The Central Bank of Kuwait has issued a directive prohibiting merchants from imposing extra charges on consumers using electronic payment methods. The move aims to protect customers and ensure fair practices in digital transactions.
Several electronic payment service providers have formally notified their partner businesses about the new rules. The notices refer to Circular No. 2/RBA/600/2025, issued by the central bank on September 30, 2025.
The circular clearly bans merchants from charging customers any additional fees for payments made using debit or credit cards through electronic payment systems. This includes point-of-sale terminals, payment gateways, electronic wallets, and other digital payment platforms, regardless of technology used.
Payment service providers emphasized that full compliance with the directive is mandatory. Businesses failing to follow the rules could face legal liability and penalties. Companies were also informed that agreements with commercial entities and service users have been updated to reflect the prohibition of extra charges.
The Central Bank of Kuwait has circulated the directive to all banks, electronic payment providers, and electronic money institutions. The directive specifically reaffirms that no fees or commissions may be collected from end-users for payments made with KNET debit cards or credit cards within Kuwait.
Experts say the ban on extra charges is expected to encourage wider use of electronic payments and improve consumer confidence in digital transactions. By removing hidden fees, the central bank seeks to make electronic payments more transparent and accessible to all.
Merchants are advised to review their billing systems and payment processes immediately to ensure compliance. Consumers are encouraged to report any violations of the circular to the central bank or payment service providers.
The Central Bank’s directive marks a significant step toward strengthening digital payment regulations in Kuwait. It reinforces the importance of consumer protection and fair practices in the rapidly growing electronic payment sector.
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