UAE cardholders face 3.14% overseas fee from September – here’s how to save
New foreign transaction fee applies to both debit and credit card use
DUBAI: From 22nd September 2025, UAE-issued debit and credit cards will carry a new, higher charge for overseas use.
Whether you’re travelling for leisure, booking services online with international merchants, or withdrawing cash abroad, a 3.14% fee will now apply. That’s a significant jump from the previous 2.09% rate – and enough to impact your travel budget if you're not prepared.
The increase follows notifications sent by several UAE banks to their customers. The updated fee structure includes a 1% currency conversion fee from card networks like Visa, Mastercard, or Amex, plus 2.14% in bank processing charges. This means every Dh5,000 spent abroad could cost you an additional Dh157 in fees alone.
If you frequently use your UAE cards while travelling or shopping internationally, here's a breakdown of what’s changing, what to watch for, and how to protect your wallet.
What’s changing for travellers?
The updated foreign transaction fee will be triggered whenever a UAE-issued card is used outside the country or with non-UAE-based merchants. The total 3.14% surcharge will be automatically applied to:
- In-store purchases abroad
- Online shopping on international platforms
- ATM withdrawals outside the UAE
The surcharge comprises:
- 1% currency conversion fee (applied by the card network)
- 2.14% bank transaction fee (charged by your UAE bank)
Even if you’re billed in US dollars or another currency rather than dirhams, these charges still apply.
What is Dynamic Currency Conversion?
One hidden pitfall many cardholders fall into is Dynamic Currency Conversion (DCC). This occurs when a foreign merchant offers to convert your transaction into dirhams at the point of sale.
While it may appear more convenient, DCC usually comes with inflated exchange rates – adding 5% to 7% on top of your bill. And despite being charged in AED, you could still face the full 3.14% foreign transaction fee.
Tip: Always opt to pay in the local currency – not dirhams – when asked abroad. This ensures you avoid unfavourable exchange rates and possible duplicate charges.
How can travellers reduce fees?
While the new fee is set, there are several ways UAE cardholders can lower or avoid additional costs during their travels:
- Use a travel-optimised credit card: Some UAE banks offer cards designed for international use, waiving foreign transaction fees entirely. Look for cards with added perks like cashback or travel rewards.
- Withdraw cash less frequently: Minimise ATM fees by withdrawing larger amounts instead of making several small transactions. Check if your bank refunds overseas ATM charges.
- Say no to DCC: When paying abroad, always choose the local currency at checkout or ATM machines.
- Try a multicurrency prepaid card: Several UAE fintechs and banks offer travel cards that lock in exchange rates ahead of time, often with no foreign usage fee.
- Check your fee schedule before travelling: Review your bank’s mobile app or online banking portal to understand exactly what fees apply. Fee structures may vary between cards.
What’s the Jaywan Card and when is it coming?
The UAE’s Jaywan card, launched domestically in 2023, is expected to roll out internationally later in 2025. While still in limited global use, this homegrown payment system may eventually offer lower foreign transaction fees and better exchange rates for UAE travellers.
Once available abroad, Jaywan could provide a competitive alternative to Visa or Mastercard for residents looking to avoid high surcharges during travel.
Example fee comparison
Spending Dh7,000 abroad over a 10-day trip could now cost:
- Old fee (2.09%) = Dh146.30
- New fee (3.14%) = Dh219.80
That’s an extra Dh73.50 in charges – with no added benefit.
Despite the hike, using a credit card internationally still offers advantages, such as fraud protection, travel insurance, and emergency card replacement. Just make sure your card is optimised for overseas use, and know the charges ahead of time.