New 3.14% overseas charge for UAE cardholders: 6 ways to minimise it

From September 22, using UAE-issued debit and credit cards overseas will cost more

Last updated: July 28, 2025 | 15:52

3 MIN READ

Credit card fees, often viewed as a highly intricate web of numbers, can get more complex when factoring in overseas transaction fees.

Shutterstock

Dubai: Travelling internationally is about to get more expensive for UAE residents—at least when it comes to card payments.

From September 22, 2025, UAE banks will increase foreign transaction fees to 3.14% on all purchases or cash withdrawals made using UAE-issued credit and debit cards. That’s a steep jump from the previous 2.09%, and it could quietly inflate your travel budget if you’re not prepared.

What’s changing for UAE travellers?

UAE banks have started notifying customers of the new 3.14% surcharge on international transactions, which applies whether you're spending at a hotel in Paris, shopping online with a US-based website, or withdrawing cash from an ATM in Singapore.

The fee is typically broken down into:

1% currency conversion fee from Visa, Mastercard, or Amex
2.14% transaction fee charged by your bank or card issuer

This means even a modest Dh5,000 overseas spend could cost an extra Dh157 in fees alone.

Also Read: Travelling aboard? 7 must-knows when using your UAE debit, credit card overseas

Foreign vs currency conversion fee

Foreign transaction fee: Charged by your UAE bank for processing payments in a foreign country or currency
Currency conversion fee: Charged by the card network (Visa, Mastercard, Amex) for converting AED to the local currency
These are usually bundled together and deducted automatically.

When are these charges applied?

These fees can hit even if you're charged in USD, not just in euros, pounds, or yen. That's because what matters is where and how the transaction is processed—not just the currency.

Common triggers:

Shopping in-store or online with non-UAE merchants
ATM withdrawals abroad
Dynamic Currency Conversion (DCC) at checkout (more on that below)

Say no to “pay in AED” overseas

Many travellers are caught off-guard by a practice known as Dynamic Currency Conversion (DCC)—when a foreign merchant offers to convert your total into dirhams at checkout.

Sounds convenient? It’s not.

DCC allows the merchant or ATM operator to set their own inflated exchange rate, which can tack on 5–7% to your bill. Worse, you may still be hit with a 3.14% foreign fee on top.

Best practice? Always choose to pay in the local currency, not AED.

Also Read: Going cashless in UAE? Top digital payment options tourists must know

Minimise, avoid overseas card fees

Use a “no foreign fee” credit card:
Several UAE banks offer travel-focused cards that waive foreign transaction fees. Compare terms and choose one before your next trip.
Withdraw cash in larger amounts:
If using ATMs abroad, reduce frequency to avoid repeated charges. Confirm if your bank refunds international ATM fees.
Avoid DCC (Dynamic Currency Conversion):
Never opt for AED when asked at overseas merchants or ATMs. Choose the local currency to get the best rate.
Consider using travel prepaid cards:
Some UAE banks and fintechs offer multicurrency prepaid cards that lock in exchange rates and skip forex fees.
Monitor fees before you leave:
Check your bank’s exact foreign transaction and ATM charges under “fees and charges” or in the mobile app.
Look out for the Jaywan card:
The UAE's new domestic payment scheme, Jaywan, will launch globally in late 2025 and may offer reduced overseas transaction fees when fully rolled out.

How quickly new card fees add up

If you spend Dh7,000 abroad over a 10-day holiday:

Old fee (2.09%) = Dh146.30
New fee (3.14%) = Dh219.80
That’s Dh73.50 more, just in fees—without any additional benefit to you.

Still helps to use credit card abroad

Despite the fees, credit cards offer benefits like:

Fraud protection and zero liability
Travel rewards or cashback
Emergency card replacement or support
Easier refund claims for disputed charges

Just be sure it’s a card that’s optimised for international use—ideally, one with no foreign fees.

Bottom line for UAE travellers

Rising foreign transaction fees mean UAE residents need to travel smarter. A little planning—such as choosing the right card, avoiding DCC, and withdrawing cash wisely—can save hundreds of dirhams per trip.

And with the Jaywan card soon to expand abroad, UAE travellers may soon have a homegrown option that avoids some of these charges altogether.

Justin VargheseYour Money Editor

Justin is a personal finance author and seasoned business journalist with over a decade of experience. He makes it his mission to break down complex financial topics and make them clear, relatable, and relevant—helping everyday readers navigate today’s economy with confidence. Before returning to his Middle Eastern roots, where he was born and raised, Justin worked as a Business Correspondent at Reuters, reporting on equities and economic trends across both the Middle East and Asia-Pacific regions.