Dubai: UAE retailers are not allowed to slap extra fees on credit card or debit card payments, Omar Bu Shahab, CEO of the Commercial Compliance and Consumer Protection Division (CCCP) in the Department of Economic Development in Dubai, told Gulf News.
Bu Shahab was commenting on an announcement made by a private school in Dubai requesting parents to pay two per cent extra fees on credit card or debit card payments for anything related to school fees.
The circular said: “We write to inform you of a change regarding payment methods at Our Own High School, Al Warqa’a Dubai, UAE. With effect from November 1, 2013 any and all payments made by credit card or debit card at the school or online will be subjected to a two per cent processing fee.”
“Retailers who are charging extra fees on the credit card or debt card payments are violating the consumer protection law and will be subject to penalties,” he said.
The Supreme Committee of Consumer Protection in the UAE has issued certain regulations banning all retailers across the emirates from charging extra fees on bank debit cards.
While the school justified this regulation by saying that this will be charged by the bank to process all payments made by credit card or debit card, Bu Shahab said that these fees go to the retailers and not to the bank.
“In this case the school is violating the rules,” he said.
Bu Shahab added: “The card processing payment should be offered as a free service across all UAE retailers and slapping an extra two per cent charge is illegal.”
He called upon consumers to submit a formal complaint at the department as they can take quick action by sending notice to the retailer, imposing heavy fines and it could even end with the closure of the outlet.
The school also provides other choices to the parents who do not wish to pay the two per cent processing fee. They can choose other payment methods such as cash, cheque or the GEMS NBAD Co-branded card, the school said.
