They know it’s illegal
I stay in the Meena Bazaar are of Bur Dubai, which is a massive shopping district (‘‘Swipe fee’ continues for UAE credit card users’, Gulf News, July 27). Every time I go out to buy gold, all the branded stores and even small stores ask for a percentage fee. Just a month ago, I purchased something from a gold store and they immediately charged me extra on the credit card. I told the salesperson that this was not legal. He gave me the excuse that he had already lowered the making charges on the gold item, and this was the only way they could cover their costs. This goes to show that every shop owner knows that the practice is illegal, but they are still charging customers. If customers don’t want to pay the charge, they tell us to go to the nearest ATM to get cash. Most people end up paying the extra fee because they don’t have so much cash in hand, or don’t want to go all the way to the ATM. Shopkeepers are just taking advantage of the situation. I have been in Dubai for over 10 years and know about this rule and practice, but what about tourists who visit? They would be completely fooled by shopkeepers. Most people buy the item and don’t think of raising a complaint. But I think they have every right to. After Gulf News’ report, I have noted down the Ministry of Economy - Department of Economic Development’s consumer protection hotline. My plan is to tell the shopkeeper next time that if he doesn’t remove the charge, I will call the authorities right then and there.
From Mr Prashant Bhatia
Dubai
What about the merchants making a living?
I am a gold jewellery merchant in Dubai and would like to raise a few questions with Gulf News regarding credit card swiping fees. With millions invested in a jewellery store, what is a reasonable return on investment (ROI) that one should expect? Have you tried to look from the perspective of a merchant? Do you know how much bargaining a customer does? After bargaining and bringing the price down to the lowest margin with the ever increasing rents, increase in staff expenses and municipal fees, how can a merchant afford to pay the bank 2.25 per cent of merchant fees with such thin margins remaining after incurring all the above costs? I do understand this as a practice for fixed prices, with shops such as supermarkets or businesses that have high profit margins, where the prices are already marked up for credit card payments. We have been in the UAE for over 40 years and in this business for 20 years. All I can say is that survival is difficult right now, so please do not put more pressure by imposing fines and calling merchants unscrupulous and reminding us of consumer rights. I ask you: What are a merchant’s rights? Ask customers not to bargain for cash discounts and then show us the credit cards. All I ask is to be fair to us. We also have families to support. The story is totally one-sided. I am sure most people in the business community will agree with me.
From A Reader
Name withheld on request
Dubai
Start paying with cash
The argument continues about the fees charged by merchants or banks. Instead of clamping down on merchants and banks for charging extra fee, the authorities should start pushing for cash transactions, especially for transactions less than Dh100. In many countries across the globe, the merchant offers you an on-the-spot discount up to 2.5 per cent if you are willing to pay in cash. Today, even the merchants are feeling the heat because of online discount stores who can play with prices and smaller stores who do not accept cards.
We, the consumers, should demand better pricing if we are paying cash. Numerous surveys and studies have shown that cash is always the winner.
From Mr Kamal Asif
UAE
Lead by example
This is a practice that is also being followed by some government entities. They should lead by example, as others follow these practices. Perhaps the authorities could encourage some of the service departments to adhere to this rule.
From Mr Hemant Patel
UAE
Didn’t know
The district cooling company at my residence charges me a fee whenever I pay with my credit card. I have always paid the extra charge without questioning. I never knew that there is no such thing as extra fees on credit card payments.
From Ms Pushpa Mahtani Zhouand
UAE
Facebook comment
Charged at airport
When I was paying excess baggage fee at the airport, they charged me extra for paying through my credit card!
From Mr Ahmad Bijith
UAE
Facebook comment
Pay cash instead
Some hospitals in Dubai still charge a two per cent service charge on credit and debit cards. I wouldn’t like to mention the name of the hospital, but just say that when I went to the cashier to pay with my credit card, he mentioned that there would definitely be a service charge. So I paid in cash. This happened just last month.
From Mr Roni Thadathil Raju
Dubai
Facebook comment
Paid more online
A fine of Dh100,000 for swipe fee sounds excellent. This will hopefully stop shopkeepers from charging unsuspecting shoppers. My experience with this extra charge happened online, when I was trying to purchase a flight ticket. I found the cheapest airfare for my journey to India and filled in all my details. But just when I was about to pay, a notification appeared, stating that I would have to pay a two per cent credit card fee. With the extra charge, my ticket price rose to about the same as it was on other airline websites. So I felt like my discounted ticket wasn’t really cheaper at all, as I eventually had to pay over Dh100 for this fee. But fearing other websites would ask me to pay it too, I went ahead with my purchase. I hope the authorities will monitor online transactions, too.
From Ms Sarita Vaidya
Sharjah
Paying more for no reason
I have been booking online tickets from a national budget airline since two years, and have been paying extra credit card processing fees to them. This is despite that fact that ticketing companies and travel agents are charging 2.5 per cent extra charges if we book the ticket through them. I paid Dh30 extra on my ticket from the UAE to Pakistan, which I think I shouldn’t have had to pay.
From Mr Qaiser Ajaz
UAE
Facebook comment
No explanation
I read Gulf News’ report about illegal credit card fees, and I would like to complain about the new charges added by my district cooling service provider. I reside in Mirdif, Dubai, and I was astonished to find that since May or June of this year, I have been paying an extra Dh18 on top of my service charges every month, which I pay online. I went to their offices to ask them about this matter, and they could not explain it! Who is the beneficiary of this extra fee and why are customers paying for this?
From Mr Hussam Saleh
Dubai
Still being charged
I completely agree that swipe fees do exist in the UAE. Just try booking a ticket with an airline website and pay with a credit card. You will see the difference, in terms of additional fees. Also, I disagree with the comments of jewellery store owners in the report. Yes, they may not be charging credit card fees, but try buying a gold coin or 24 carat gold jewellery from them, it will cost you 2 per cent to 2.5 per cent more, just as in credit card fees.
From Mr Jitu Singam
UAE
Pay fee or lose discount
Thank you Gulf News, for highlighting this issue. I am a regular shopper of gold jewellery. I have found that many gold shopkeepers don’t charge fees but they make up for it in other ways. If you tell salespersons that you want to make a payment by card, they do not offer you any discounts, and do not reduce making charges for the item by the same amount as applicable in cash payments.
From Mr Kutub Kagdi
Dubai
People should be more careful
When getting a credit card, you assume it would make it easier for you to buy things. It is an easy transaction; you swipe a card at a store and you’re done. But, after getting a card in the UAE, I realised that it wasn’t as simple. A lot of times, I have been asked by stores to pay an extra fee to just use my credit card. A few days ago, I was at a gold shop in Sharjah and made a purchase of around Dh500. When I handed the shopkeeper my credit card, he casually informed me that I would be charged extra – two per cent on the bill as a transaction fee, which he claimed the Central Bank had asked them to charge, every time a customer uses a credit card to pay for something. This isn’t the first time it has happened. I’ve been asked to pay at many other stores in Sharjah in the past, too. I didn’t realise these charges were not allowed, but found out after reading the report in Gulf News. I am glad that the newspaper is shedding light on such issues that occur in the community on a daily basis. People need to be more careful and not pay extra for no reason. I know I will be more alert from now on.
From Ms Tania Riaz
Sharjah
This is the future
I have paid an extra charge on so many purchases, I’ve lost count! At one point, even movie theatres would charge an extra fee on online transactions — until the authorities put an end to it. Why are shops charging for credit card payments? They should know that this is going to be the future of transactions, as more companies turn to online retail solutions, as that is where the younger generations are. If stores want to ensure the loyalty of their customers, they should be transparent and honest in their practices, and make it easy for consumers to make transactions, not the other way around.
From Mr Ali Akbar Mahmoud
Abu Dhabi
Editor’s note: Have you been charged for using your credit card? Did you raise it with the authorities? Share your experiences at readers@gulfnews.com. You can also post a comment on Gulf News’ Facebook page or tweet us @gulf_news.
