I have regularly invested my personal savings in Dubai National Bonds. I recently used my Abu Dhabi Islamic Bank (ADIB) credit card for online purchases, available on the Dubai National Bonds website. It provides a convenient way to purchase bonds while sitting at home, instead of going to an exchange house.
After a review of my bank statement, I noticed that the bank had treated my online purchase as a cash withdrawal, and charged me a cash withdrawal fee, despite the fact that it was an online purchase. I called up ADIB’s call centre. They were initially hesitant to register a complaint and when they did register it upon my insistence, they refused to reverse these charges and closed the case. I was told that I had been charged as per the terms and conditions available on the website. However, I could not find any clear statement that said that the purchase of national bonds would be treated as cash withdrawal. I could only find the information that reward points would not be given on the securities’ broker/dealer transactions.
I would appreciate it if Gulf News could get feedback from the relevant stakeholders, for the benefit of customers of Dubai National Bonds.
From Mr Hammad Ali
Dubai
The management of ADIB responds:
Thank you for bringing this to our attention. The customer has used his card for the purchase of National Bonds online. It is clearly stated in our schedule of charges (SOC) that it would be treated as a cash withdrawal since it is classified as a brokerage, hence the fee is applicable.
This is part of the terms and conditions. Please refer to point (4):
“(4) Whichever is greater. Includes cash withdrawal at ATMs, Exchange Houses or similar, transfer of the original cover of the Card to any ADIB Account. This will also include all Transactions at merchants classified as “Security Brokers/Dealers” (under Visa Merchant Category Code 6211) including but not limited to National Bonds Corporation Transactions. The new ATM Cash Withdrawal fee (3 per cent of the Transaction amount or Dh90, whichever is greater) shall be applicable on these Transactions from 1st December 2016, and until such date the existing ATM Cash Withdrawal fee (3 per cent of the Transaction amount or Dh75, whichever is greater) shall continue to be applicable on these transactions. Additionally, such Transactions will not qualify for Etihad Miles, Cashback or any other reward scheme.”
We have contacted the customer and explained the terms to him once again, including the fact that the fees cannot be reversed. He is now clear about the terms.
Mr Ali responds:
My issue was not resolved, as they refuse to reverse the charges.
The management of ADIB responds:
As previously highlighted and according to our terms and conditions, which were explained to Mr Ali, the online transaction that the customer has done with National Bonds is considered a cash withdrawal. This is as highlighted in our terms and conditions, hence the bank is not in a position to reverse the valid charges.
(Process initiation: December 19, 2016. Response from organisation: December 21, 2016. Process completion: December 28, 2016.)
Editor’s note: Do you have similar issues that you would like to raise with us? You can write to us at readers@gulfnews.com.
