RIYADH, 25 August 2003 — Total cash withdrawals through automatic tellers reached some SR15 billion in May, according to the latest statistics provided by the Saudi Arabian Monetary Agency. Withdrawals during the previous four months of this year stood at SR13.4 billion, SR12 billion, SR13.6 billion and SR13.5 billion respectively. Al-Rajhi Banking and Investment Corporation accounted for 60 percent of the amount withdrawn.
About 27 million transactions were made through all ATMs and points of sale throughout the Kingdom, reflecting the growing use of ATM cards at the start of the vacation period.
SAMA said the figures showed conclusively that there was a surge in the popularity of ATM cards as a means of settling payments, which was paralleled by a growth of the ATM network, whose number swelled from 2,768 to 3,275.
Part of the reason, bank executives point out, is the incentives offered by the local banks to their customers for the use of credit cards in conjunction with several tourist agencies, airlines and prominent international hotels. Accordingly, the number of cards issued by the local banks reached 5.5 million. The potential for further growth in the credit card market is seen to be high. However, the hidden charge imposed by some establishments on the customer acts as a disincentive.
Speaking on condition of anonymity, a bank employee told Arab News that unlike in the West, where the use of credit card does not entail any additional charge, here in the Kingdom and other Gulf states the customer has to pay a hidden charge of up to two percent despite instructions to the contrary by the credit card companies.
