UAE shoppers to face card refusals after new Visa–Mastercard ruling in US?

Dubai: A landmark legal settlement in the US is challenging the way Visa and Mastercard treat premium credit cards — and the decisions being made there could create new cost pressures that eventually filter into everyday purchases in the UAE.

The settlement gives US retailers more power to reject expensive, high-reward cards and to pass certain fees directly to shoppers. That shift matters because the UAE relies heavily on premium credit cards for daily spending, travel, and e-commerce — and any change to the global economics of rewards cards can raise costs for consumers here.

Card fees change with countries

Card fees, acceptance rules and reward-funding models rarely stay confined to one country. When the world’s two biggest payment networks adjust their systems in the US, banks and retailers in other regions often follow.

Several global trends typically spread outward once they gain traction:

• rising processing costs for premium cards

• tighter rules on expensive reward tiers

• higher fees for banks that issue cards

• revised merchant acceptance standards

For UAE shoppers, that combination can translate into higher prices at checkout, costlier annual fees, weaker rewards, or new surcharges on certain card payments.

Global risks for UAE cardholders

1. Rejection of some premium rewards cards

For the first time, US retailers may decline Visa Infinite or World Elite Mastercard while still accepting lower-tier cards. These are the same tiers many UAE residents rely on for miles, cashback and airport lounge access.

2. Premium cards most expensive to process

These cards carry the highest interchange fees — the core issue behind two decades of litigation. If banks earn less in one market, they often adjust fees or rewards in others.

3. Being charged extra to use a high-fee card

Surcharges are now allowed in the US. If such practices spread globally, shoppers using premium cards could see extra fees added to bills. A 1%–1.5% surcharge can instantly reduce the benefit of a card offering 3–5% cashback.

4. Entire card reward structure gets changed

While a U.S. settlement would cut interchange fees for five years, analysts say banks may look to recoup lost revenue in other markets or through changing reward structures.

5. Rewards programmes could be scaled back

If banks collect less revenue from processing fees internationally, they may adjust:

• cashback rates

• points multipliers

• lounge access rules

• annual benefits bundles

This reduces the value you get for the fees you already pay.

No change in the UAE as of now

The US settlement signals a major shift in how premium cards are handled globally — and the UAE is one of the most rewards-driven markets in the world.

When payment networks change fee structures, the first impact usually appears in:

• reduced cashback or points

• higher annual fees

• tighter lounge-access rules

• new limits on premium card acceptance

That’s why the risks for UAE cardholders are real, even if nothing has changed yet.

What UAE cardholders must do next

1. Reassess high annual-fee cards

If you pay Dh1,000+ per year, make sure the benefits outweigh the cost.

2. Keep a lower-tier card in your wallet

Use premium cards for high-value transactions and a mid-tier card for daily spending.

3. Track announcements from UAE banks

Watch for changes from Emirates NBD, FAB, ADCB, Mashreq and others on:

• acceptance rules

• rewards revisions

• fee updates

4. Don't depend on single rewards card

Diversifying protects you if acceptance rules or benefits change.