A guide to interfacing with local bank payment APIs in the Middle East

As a payment platform expert, I provide you with the key steps and considerations for interfacing with bank payment APIs in the Middle East:

1. Preliminary preparations

• Knowledge of local regulations: Ensure compliance with financial regulatory requirements in Saudi Arabia, UAE, etc.
• Obtaining the necessary licences: May need to apply for a PSP (Payment Service Provider) licence
• Selection of target banks: Research local mainstream banks such as Emirates NBD, Al Rajhi Bank, etc.

2. API technical interface process

(a) Application stage

• Contact the merchant services department of the target bank
• Submission of company registration documents and relevant qualification certificates
• Signing of cooperation agreements and determination of rate structures

b) API Integration Steps

1. Get Development Documentation: Obtain the latest API specification and technical documentation (usually REST/SOAP) from the bank.
2. Setting up the test environment: Most Middle Eastern banks offer sandbox environments for developers
3. Realisation of core functions::
   • Payment Initiation
   • Transaction Status query (Transaction Status)
   • Refund Processing
4. Security Authentication Configuration
   • OAuth2/certificate authentication methods are commonly used in the region
   • IP whitelisting settings are usually mandatory

c) Go-Live Preparation

1. PCI DSS compliance check (if processing card data)
2. SHAHRAN gateway compatibility test (Saudi-specific)
3. UAEFTS system integration (transfers within the UAE)

d) Post-Production Monitoring

Establishment of a real-time transaction monitoring mechanism to follow changes in the rules of the Mada card network (Saudi-specific debit card system)

Need more detailed information about specific API interfaces for a particular country or bank?

An in-depth guide to interfacing the Middle East Bank Payments API (continued)

3. Country-specific interface points

(a) Saudi Arabia

• Mada Card Network: Must support the local Saudi debit card system and transactions must comply with the latest SAMA (Central Bank of Saudi Arabia) specifications.
• SADAD payments: Integration of government bill payment systems is an e-commerce necessity
• special requirement::
  • The API response must contain an Arabic error message
  • QR code payments are subject to SARIE standards (Saudi Arabia Instant Payment System)

b) United Arab Emirates

• UAEFTS Integration: Direct access to the federal electronic transfer system could increase the speed of settlements
• NAPS Support: National Automated Clearing House (NACH) system for processing batch transactions
• Dubai Fintech Sandbox: Innovative companies can rapidly test new programmes in a sandbox environment

4. API security best practices

1. dual authentication mechanism

   • IP Whitelisting + MTLS Two-Way Certificate Authentication Combination
   • HSMs (Hardware Security Modules) are mandatory for large transactions in the UAE

2. Data Encryption Standard

   • AES-256 encryption of transport layer data
   • SHA-2 for request signature verification

3. tokenisation strategy

   • PAN tokenised storage is PCI DSS Level 1 compliant
   • KNET Gateway places special emphasis on dynamic token use

5. Solutions to common technical challenges

6. Post-Production optimisation recommendations

a) Performance Tuning::