UAE Banks Set to Raise Card Fees for Overseas Transactions

The new structure combines a 1 per cent currency conversion fee charged by Visa, Mastercard or Amex with a 2.14 per cent processing fee from issuing banks. For example, a purchase worth Dhs5,000 overseas will incur an additional Dhs157 in fees.

Travellers are also being advised to avoid Dynamic Currency Conversion (DCC), where foreign merchants offer to charge transactions in dirhams. This often comes with inflated exchange rates of up to 7 per cent on top of bank fees.

To minimise costs, customers are encouraged to use travel-friendly cards that waive foreign transaction fees, withdraw larger cash amounts less frequently, and opt for payment in local currencies. The UAE’s Jaywan card, expected to expand internationally later this year, may offer an alternative with lower charges once available.

‍