Come September, UAE Banks To Raise Fees On International Card Transactions; Details Inside

Jetting off soon? Before you finalise those travel plans, take a minute to check how you’re paying abroad. From September 22, using your UAE-issued card for transactions outside the country is going to get pricier. Banks across the Emirates are bumping up international transaction fees on everything from international purchases to overseas ATM withdrawals.

Come September, Using Your UAE Bank Card At International Destinations

Photo Credits: CanvaMessages from banks have already started landing in inboxes. The new rate’s been bumped to 3.14 per cent from the earlier 2.09, and yes, it applies across the board. So whether you’re locking in a cosy hotel in Paris or clicking ‘checkout’ on a US shopping site, that added fee is going to sneak its way onto your bill.

What’s Behind The Increase?

The new structure combines two charges. First is a 1 per cent currency conversion fee, which comes from the card network like Visa, Mastercard, or Amex. Second is a 2.14 per cent processing fee from your bank. Together, they form the new 3.14 per cent surcharge. To put it in perspective, if you spend AED 5,000 abroad, your bank will tag on AED 157 in international transaction charges alone. It might not seem major in isolation, but over a full trip, it adds up fast.

Watch Out For DCC charges

One common trap that many travellers fall into is Dynamic Currency Conversion (DCC). That’s when a foreign shop or hotel offers to convert your payment into dirhams on the spot. While it may sound convenient, the reality is far from it.

DCC tends to carry inflated exchange rates, with some merchants adding 5 to 7 per cent on top of your purchase. Worse still, even after accepting DCC, you could be hit with the full international transaction fee from your UAE bank. The better option? Always choose to pay in the local currency.

How To Keep Spending In Check

While the 3.14 per cent charge might be hard to avoid entirely, there are ways to manage the blow:

• Opt for a travel-friendly card: Some UAE banks offer credit cards that waive international transaction fees. These can be a good fit if you travel often.
  
• Use cash wisely: Instead of small, frequent withdrawals, consider taking out a larger amount once. Fewer ATM visits mean fewer charges.
  
• Say no to DCC: Always go with the local currency when paying at stores, restaurants, or ATMs abroad.
  
• Try prepaid travel cards: UAE-based fintech platforms now offer multicurrency cards with fixed rates and no extra fees.
  
• Know before you go: Check your bank’s fee policy in their app or online banking portal before you fly.
  

Also Read: No OTP Via SMS Or Emails! UAE Banks Urge Residents To Use Mobile App

A Local Solution Could Be On The Way

The UAE is expected to launch the Jaywan card for global use later this year. If successful, this homegrown payment option might bring lower fees and better exchange rates for overseas spending. It’s not active internationally yet, but it’s one to watch.

For now, smart spending can make a difference. A few choices before and during your trip could save you hundreds in avoidable fees. Whether it’s choosing the right card or skipping the currency conversion offers, it pays to stay informed.

Cover Image Courtesy: CanvaPro/photobyphotoboy