UAE to increase card fees for foreign transactions: It is mentioned here how expats can avoid additional fees. world News
TL; Dr.
- From September 22, UAE banks will increase fees on the use of international cards, affect travel and global online procurement, up to 3.14%.
- Sending exeets home or spending abroad will see high fees on every swipe.
- There are ways to reduce costs, but only if you know where to see.
Staying in UAE often spreads the boundaries of your life, you earn dirhams here, but spend and support at home or other places. Whether she is booking flights, sending gifts to the family, or shopping online in any other currency, using the card issued by her UAE is part of the routine.But from 22 September, this routine becomes more expensive. Many UAE banks are updating their international transactions fees. The current will increase from 2.09%to 3.14%, on the purchase of every card (debit and credit card) or on ATM withdrawal outside the country, or in a foreign currency. It is a complete percentage point that currently pays most expats.For many people, this is not just one charge, it is a recurring cost on everything from remittances to travel expenses.
Why it matters to expand the most
For UAE exits, international expenses are going to be more expensive. This fee increase may look like a small number on paper, but over time, it regularly makes hard hits for expats:
- Book flights for family trips
- Use UAE cards for school fees abroad
- Make online shopping in foreign currencies
- Send money through platforms using card payments
- Withdraw cash while traveling or going home
If you are sending AED 3,000 to a relative using a platform that charges your card in dollars, AED 94.20 is expected to be lost with card fees alone. It adds.
What is behind the increase in fee?
3.14% charge includes two parts:
- 1% – taken by global card network like Visa or MasterCard for currency conversion
- 2.14% – Added as a processing fee by your local bank
These rates are not new globally, but the adjustment brings closer to the UAE fee to suit the international benchmark. Banks say the change reflects increasing operating costs. But for cardholders, exclusion exclusion of expenses, especially the border expenses, means just more money than the door.
How can you cut these allegations
While you may not be able to avoid completely new fees, there are ways to spend smarter
- Use a multicuously card or wallet: Some UAE Fintech platforms provide prepaid travel cards where you can lock in exchange rates and avoid foreign fees. These are constantly easy for travelers or expats that divide the time between countries.
- Choose the right bank card: Some premium credit cards in the UAE waive international transactions fees, but you will need to check the eligibility, as they often require high income or annual fees.
- Avoid paying in AED abroad: In shops or ATMs abroad, always choose to pay in local currency. The option for AED may seem easy, but usually more cost due to bad exchange rates and hidden fees (known as)
Dynamic money conversion Or DCC). - Reduce card-based remittance: If you are using cards for cross -border payments, see direct bank transfer or licensed exchange houses with low overall fees.
What is coming next?
Later this year, a UAE-based payment option globally is a matter of Jaywan. It is designed to offer smooth and possibly cheap international transactions. But for now, it is still in the early stages and does not increase the encroachment of immediate cost increase in 2025.questions to ask1. Will this affect online shopping from abroad?Yes. At any time your card is charged in non-dirham currency, including international websites, 3.14% fee will apply.2. Are debit cards also affected?Yes. Most UAE banks’ debit and credit cards will take this new fee structure.3. What if I use the UAE Exchange House or Transfer App?It depends. If the app charges your card in a foreign currency, you will still pay the fee. Direct bank transfer is usually a safe condition.
