UAE banks will soon raise charges on international card payments. Starting September 22, foreign transaction fees will increase to 3.14%, up from the current 2.09%. This rise means higher fees for residents who spend abroad.
For example, a Dh5,000 overseas purchase will now carry an extra Dh157 in charges. Moreover, frequent travelers and online shoppers will feel the impact most. Consequently, fees are becoming an unavoidable cost for many UAE residents who rely on cards for international purchases.
In addition, financial experts urge consumers to review their options. Brijesh Kumar, Chief Business Officer at Paisabazaar.ae, highlighted that residents should focus on hidden costs in card terms. He explained that avoiding unnecessary fees begins with choosing low or zero-forex cards. Therefore, being informed helps consumers save money while spending abroad.
Furthermore, UAE banks already provide solutions for such needs. Cards such as FAB Infinite Travel, FAB Low Rate, and ADCB Traveller Cards are designed to minimize costs. These products come with low or zero forex charges, making them attractive to frequent international spenders. Additionally, such cards provide travel benefits that add extra value.
Another way to limit losses is through cashback. Some cards, including Citi Cashback and Al Hilal Cashback, reward users for spending abroad. These rewards can partly offset higher charges. Therefore, picking the right product allows customers to balance fees with savings.
Importantly, travelers should also avoid paying in AED when abroad. Dynamic Currency Conversion often inflates bills by 5–7% on top of bank charges. Always pay in the local currency to prevent duplicate fees. Moreover, this small step protects cardholders from unnecessary costs.
Likewise, ATM withdrawals overseas also carry high charges. Withdrawing larger amounts less frequently reduces repeated deductions. Furthermore, prepaid multicurrency travel cards offer fixed exchange rates and avoid forex fees altogether. These tools provide security and flexibility for travelers.
Finally, the Jaywan card, expected to expand globally later this year, could provide lower international charges for UAE residents. Alongside fintech solutions and multi-currency wallets, it offers more options to manage costs. Ultimately, while fees are rising, consumers who plan carefully can still save money abroad.
