Central Bank Bans Banks and Providers from Charging Surcharges on Card Payments
Oct, 1, 2025: The Central Bank of Kuwait (CBK) has issued a directive prohibiting all local banks, electronic payment service providers, and e-money providers from collecting any extra fees or commissions from customers in Kuwait for using KNET debit cards or credit cards.
This decision applies universally, covering all electronic payment methods, including both point-of-sale (POS) devices and online payment gateways. The move is a direct response to complaints about merchants imposing surcharges on customers for simply choosing to pay with a card.
To protect consumer rights, the CBK is strengthening its oversight by mandating that all agreements with merchants who accept electronic payments must explicitly include a clause forbidding these extra charges.
The CBK has set three key requirements:
- New and existing merchant agreements must clearly state that no additional fees will be charged for electronic payments.
- All existing agreements must be reviewed and updated within one month.
- Entities that violate this rule face strict measures, including the suspension of their payment services.
The CBK stressed its commitment to fairness in the financial sector and warned that non-compliant institutions will face service suspension.
