UAE bank cardholders to pay more when travelling abroad

Time Out Dubai

a day ago

Travelling abroad? Your next holiday might cost more than just flights and hotel bookings – especially if you're swiping a UAE-issued card.
Starting September 22, UAE banks will raise the foreign transaction fee to 3.14 percent on all international purchases and ATM withdrawals made using credit or debit cards.
Whether you're shopping on a U.S.-based website or booking a boutique hotel in Rome, the fee will apply – and it's a noticeable jump from the current 2.09 percent.
What's actually changing?
Customers across the UAE have begun receiving notices from their banks confirming the change. The new fee structure typically includes:
1 percent currency conversion fee (charged by Visa, Mastercard, or Amex)
2.14 percent bank processing fee
That adds up to a total 3.14 percent surcharge – so if you're spending Dhs5,000 abroad, expect to pay an extra Dhs157 in fees alone.
The hidden fee trap: DCC
One sneaky charge to avoid? Dynamic Currency Conversion (DCC). It might seem helpful when a foreign merchant offers to convert your purchase into dirhams on the spot, but it's rarely a good deal.
DCC often comes with inflated exchange rates – sometimes adding 5-7 percent extra – and you may still be charged the full foreign transaction fee.
Tip: Always choose to pay in the local currency, not AED, when using your card overseas.
How to dodge the worst of the fees
The 3.14 percent fee may be unavoidable for many travellers, but there are ways to cut the cost:
Use a travel-friendly or 'no foreign fee' credit card: Some UAE banks offer cards that waive these fees entirely.
Withdraw cash strategically: Pull out larger amounts at once rather than frequent ATM visits, which can each trigger fees.
Say no to DCC: Stick with local currency whenever you're asked at a store, restaurant, or ATM.
Try multicurrency prepaid travel cards: Some UAE fintechs offer these with fixed exchange rates and no added foreign transaction charges.
Know your fees: Check your bank's app or fee schedule before you travel so you're not caught off guard.
A homegrown alternative may be coming
Later this year, the UAE is expected to roll out its Jaywan card internationally – a new payment system that could offer lower foreign transaction fees and better rates. It's not available globally just yet, but watch this space.
The upcoming fee hike means UAE travellers will need to be more strategic with how they spend overseas. From choosing the right credit card to dodging costly conversions, a little prep could save you hundreds of dirhams on your next trip.
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