Ask the expert: credit card user asked to pay more

I recently went to a branch of a full-service travel agency for my mother’s visit visa. I was paying using my credit card. Before swiping the card, the cashier told me there would be an extra charge of 2.99 per cent of the total value. I had the same problem at a large retail jewellery outlet, and when paying my children’s college fees. Are these outlets legally allowed to charge extra for paying by credit card?

In 2013, the UAE Central Bank issued a Directive prohibiting retail outlets from levying a surcharge on credit or debit card transactions. This prohibition is backed by stringent penalties.

Banks that issue credit or debit cards may levy a charge on retailers in respect of purchases made using such cards. The retailer, however, is not permitted to pass that levy on to the consumer. Some schools no longer accept card payments, unless the parent agrees to pay the transaction charge. Though the school may describe the arrangement as a ‘separate payment facility’, this requirement seeks to circumvent the prohibition and amounts to a levy in contravention of the Directive.

If you have no alternative but to use a particular service or outlet and you only have a credit card, inform the retailer that they have no right to impose a surcharge, and that you propose to report them to the Consumer Protection Department at the Ministry of Economy if they insist on doing so.