Travellers and online shoppers brace for higher international card charges amid sharp jump in fees
If you’re heading overseas with a UAE-issued card in your wallet, get ready to pay more. Starting 22 September 2025, banks across the Emirates are bumping up their foreign transaction fees to 3.14%, affecting everything from shopping in Paris to withdrawing cash in Mumbai—or even buying from an international website while sitting at home in Dubai.
The new rate includes a 1% fee from global card networks like Visa, Mastercard, and American Express, plus a 2.14% charge by UAE banks. It replaces the current 2.09% fee structure that travellers and expats have long grown accustomed to.
From 2.09% to 3.14%: What This Really Means
It’s a noticeable jump—and it adds up fast.
For example, say you spend AED 5,000 while travelling. Under the new rate, you’ll cough up AED 157 in fees. That’s AED 52 more than what you’d pay today under the 2.09% structure.
It doesn’t sound like much until you do it over and over again.
Smaller online purchases from foreign e-commerce platforms? Still hit. ATM withdrawals in another currency? Also affected.
One banker from a leading Emirati retail bank, speaking anonymously, said the increase reflects “international settlement cost pressures and FX volatility,” but customers see it for what it is: more expense at a time when travel is already pricier.
Who Pays and Where?
The new rate applies universally across:
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All international point-of-sale transactions
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Online purchases from non-UAE merchants
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ATM withdrawals abroad
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Recurring subscriptions with foreign-based services
It doesn’t matter whether you’re in London, Lahore, or logging into Netflix U.S.—if the merchant is foreign, you’re paying the 3.14%.
And it won’t matter if your purchase is in euros, rupees, dollars, or yen. The bank’s 2.14% cut sits on top of the network’s 1%, giving the total charge.
That’s pretty standard now.
UAE Banks Not Alone, But Still Among the Highest
To put it into perspective, here’s a snapshot of how UAE’s new fee compares globally:
| Country | Avg. Foreign Transaction Fee | Notes |
|---|---|---|
| UAE | 3.14% | New rate from Sept 22, 2025 |
| United States | 2%–3% | Varies by card issuer |
| UK | 0%–2.99% | Many UK cards offer 0% abroad |
| India | 1%–3.5% | Higher on prepaid forex cards |
| Australia | 2%–3% | Some cards waive foreign fees |
So yes, UAE will be at the upper end of the global range. And unlike in the UK or Australia, very few UAE banks offer cards with 0% international charges—unless you’re in private banking tiers.
The Hidden Danger: Dynamic Currency Conversion (DCC)
Here’s where it gets even trickier.
Many travellers assume they can avoid surprise fees by choosing to pay in dirhams when offered the option overseas. That service is called Dynamic Currency Conversion, or DCC.
But while it looks harmless—”Pay AED instead of USD?”—it almost always comes with an inflated exchange rate, often worse than what your bank would offer.
And yes, you’ll still get charged the 3.14% foreign transaction fee in most cases. Why? Because the purchase still involves a non-UAE merchant, regardless of the displayed currency.
As a result, you’re hit twice:
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Once with a poor exchange rate
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Then again with the standard foreign transaction fee
One Dubai-based travel advisor put it bluntly: “DCC is where good intentions go to die.”
Consumer Reactions Are Mixed, But Mostly Frustrated
For people who live internationally—expats, frequent fliers, business owners—the new rate feels like a nickel-and-dime move.
A British expat working in Abu Dhabi said, “I’m already paying high annual card fees. Now I get dinged every time I order something from Amazon UK or book flights with BA.”
Some travellers said they’d now carry more cash, though that carries its own risks. Others are already exploring digital banks or fintech cards that charge zero for international use.
A few UAE residents have even started opening overseas bank accounts just to avoid local fees.
Workarounds Exist—But They’re Not for Everyone
If you’re looking to avoid the 3.14% sting, there are options, though none are one-size-fits-all.
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Use Multi-currency Cards: Some UAE banks offer preloaded forex cards, but they come with load fees, expiration risks, and limited flexibility.
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Try Fintech Alternatives: Global services like Wise, Revolut, or Niyo offer low-fee conversions, but onboarding from the UAE can be tricky.
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Open Offshore Accounts: Legal, yes—but paperwork-heavy and not practical for most consumers.
Ultimately, the average customer is stuck with the new rate, unless banks start offering 0% fee options—which, so far, no one in the UAE has rushed to do.
