UAE Shoppers Could Face Card Refusals After New US Visa And Mastercard Decision

A major legal settlement in the US is shaking up how Visa and Mastercard treat premium credit cards in the UAE & beyond. Now, that may sound like something happening “far away”, but it’s not. When the biggest payment networks tweak their systems in one country, the effects often travel, and the UAE is one of the most rewards-heavy markets in the world.

How Global Credit Card Changes Could Affect You In The UAE

In simple terms, changes made in the US today could make your daily card spending in Dubai or Abu Dhabi a little more expensive tomorrow. Not yet, but the pressure is building as reported in Gulf News.

How These Changes Spread Globally

Credit card systems don’t stay local. Once the US changes rules, other countries usually adjust. That can lead to:

• Higher processing costs for premium cards
• New limits on expensive reward tiers
• Increased fees for banks that issue cards
• Stricter acceptance rules for merchants

For shoppers, these shifts often show up in the form of higher annual fees, weaker rewards, or even new charges at checkout.

What UAE Residents Need To Know About Visa And Mastercard

Here’s what could reach the UAE if global trends continue:

1. Some Premium Cards Might Get Rejected
   Retailers in the US can now refuse high-tier cards like Visa Infinite or World Elite Mastercard. These are the same cards many UAE residents use for miles, cashback, and lounge access. If the trend spreads, acceptance rules here could tighten too.
2. Premium Cards Are the Costliest to Process
   These cards carry high interchange fees. If banks lose money in one region, they often try to recover it elsewhere, which could mean adjustments in the UAE.
3. Extra Charges for Using High-Fee Cards
   Surcharges are now allowed in the US. If that model spreads, you might see:

• A 1% to 1.5% extra fee for using certain cards
• Reduced value from cards offering cashback
• Higher final bills on big purchases
  

4. Rewards Structures Could Get Rebuilt
   If banks earn less from fees abroad, they may redesign rewards here. That may include new earning rules or cuts to premium perks.
5. Rewards Might Shrink
   Banks may reduce:

• Cashback rates
• Points multipliers
• Lounge access
• Annual benefit bundles

So your AED 1,500 annual-fee card could deliver less value than before.

No Change Yet, But Pressure Is Rising

Nothing has officially changed in the UAE so far. But historically, when major markets adjust fee systems, the effects usually show up here through:

• Lower cashback
• Higher annual fees
• Stricter lounge access
• Merchant limits on premium card acceptance

What Should UAE Shoppers Do Next About Visa Mastercard Situation

1. Re-check High Annual-Fee Cards

• If you pay over AED1,000 a year, make sure the benefits still make sense.
  

2. Keep a Backup Mid-Tier Card

• Use premium cards for travel or large payments.
• Use standard cards for groceries, fuel, and daily spend.
  

3. Follow Updates from UAE Banks
   Watch for announcements from:

• Emirates NBD
• FAB
• ADCB
• Mashreq
• And others
  

Look out for changes to rewards, fees, and acceptance rules.

4. Don’t Depend on One Card

• Spread your spending across different cards.
• This protects you if one card suddenly loses perks or faces new limits

Also Read: AI To Shop And Pay For UAE Visa & Mastercard Users; No Checkout Needed!

So keep an eye on these updates to save yourself from refusals and increased credit card fees in the UAE & beyond.

Cover Image Courtesy: CanvaPro/ Khwanchai Phanthong’s Images