Dubai: Jewellery, air tickets and even utility bills are still costing UAE customers extra when paid by credit card, despite repeated warnings against the illegal practice.
The latest warning on Sunday was accompanied by a threat of a fine of up to Dh100,000 for those caught imposing a swipe fee on customers paying by credit card.
The Abu Dhabi Department of Economic Development said the Ministry of Economy will take action following a decision by the national Supreme Committee for Consumer Protection.
Trade authorities in various emirates have over the years been calling for an end to the practice. Vendors say they pay their bank a processing fee whenever a customer pays by card, which is passed on to the buyer.
However, customers continue to complain they are still being charged extra in many cases, including when buying a car in certain instances.
Undeterred payment takers even display a sign about the extra fee or mention it on their website.
“I paid around Dh100 extra — 2.5 per cent — when I bought a Dh4,000 ticket for [a UAE-based airline] using my card online. The website said I would be charged extra right in the end, after I had checked all available options and decided this ticket was best for me,” a British traveller said.
Indian gold shopper Joby George, 30, added that he paid a similar percentage as a surcharge on a purchase from Karama Shopping Centre last month.
“I didn’t know what they were doing was illegal. I won’t let it happen to me next time,” George added.
A shopkeeper at the centre said: “I think one solution is to make it mandatory to mention the ban on every receipt, as a standard. This will force vendors to comply and spread awareness among customers.”
Another Indian expat said he paid Dh12.50 extra on a Dh1,000 utility bill payment.
“I told the cashier it’s clearly not allowed to charge customers extra. She said they have their rules and they will charge me extra. I had cash but I deliberately used my card to prove a point — that there are still entities that openly take more money from you if you pay by card. It even mentions that on their receipt. This has got to stop,” he added.
Meanwhile, many reputable businesses have welcomed the latest warning against what is known as the “swipe fee”.
“We welcome the decision by the authorities to strictly implement the rule. It is certainly going to be beneficial for the consumers and will provide them additional convenience when it comes to shopping and making payments like utilities, etc. Such consumer-friendly policies will only help to boost the retail sector,” said Shamlal Ahmad, managing director — International Operations, Malabar Gold & Diamonds.
Joy Alukkas, chairman and managing director, Joyalukkas Group, said: “We believe in making every purchase for our customers very convenient and easy, so we don’t charge any service fee if a customer wants to use his or her credit card for a purchase.
“Also, as per UAE government’s dictate, retailers are not allowed to charge a service fee on credit card purchases. We don’t simply not charge a service fee, but we also offer interest-free instalments schemes on credit card purchases through our tie-ups with major banks in the UAE, to make it very convenient and easy for our customers.”
