UAE Banks to Increase Foreign Card Fees: How to Save on Overseas Spending

Dubai, UAE: Starting 22 September 2025, UAE banks will raise the fees charged on all international transactions made with credit and debit cards. The new foreign transaction fee will be 3.14% of the amount spent abroad, up from today’s 2.09%. The increase affects purchases outside the UAE, payments to overseas online merchants, and ATM withdrawals in foreign currencies.

What’s Changing & Why It Matters

The hike is composed of two parts: a 1% currency conversion fee charged by card networks such as Visa, Mastercard or Amex, and a 2.14% processing or service fee added by banks. This means every overseas transaction will carry a higher cost, which could add up significantly for frequent travellers, online shoppers, and expatriates who often perform transactions in foreign currencies.

For someone spending AED 5,000 abroad in a trip or on online purchases, the additional cost under the new rate would be meaningful—potentially dozens of dirhams more in fees compared to prior charges.

Who Will Be Affected

• Travelers making payments abroad in shops, hotels or restaurants
• Online shoppers dealing with international websites
• Anyone using UAE-issued cards for ATM withdrawals overseas
• Expats sending money or making regular payments in foreign currencies

Even transactions in USD or EUR might incur the fee, depending on where the transaction is processed.

Ways to Minimise the Extra Cost

To avoid getting hit too hard by the new fees, here are some strategies people can use:

1. Use cards with “no foreign transaction fees”
   Some UAE banks offer premium or travel-focused cards that waive or reduce these charges. If you travel often or shop internationally, choosing one of these cards might help you save.
2. Decline Dynamic Currency Conversion (DCC)
   When paying abroad, don’t agree to have the amount converted into AED by the merchant. Choosing to pay in the local foreign currency avoids inflated exchange rates and the extra charges that come with DCC.
3. Make fewer, larger ATM withdrawals
   Instead of multiple small cash withdrawals abroad—which may incur repeated fees—withdraw more at once where safe, to cut down the number of times you pay fees.
4. Use multi-currency or prepaid travel cards
   These cards often let you load funds in foreign currencies or lock in exchange rates, helping to reduce conversions and associated fees.
5. Check fee schedules beforehand
   Before travelling or transacting internationally, review your bank’s current fees via their app or website, so you’re not surprised by the costs.
6. Consider domestic alternatives
   Keep an eye on UAE-based payment schemes or new card services that may offer lower international processing charges. Some are expected to roll out features that will reduce reliance on costly foreign transaction fees.

What This Means for Consumers

With this change, travel budgets, online shopping, and sending remittances may become more expensive. Even small regular overseas transactions could start adding up significantly over time. Consumers will need to plan and choose payment methods carefully to limit avoidable costs.

Banks have indicated that such adjustments are part of reflecting changing operational costs and aligning with global payment processing norms. Still, the increase underscores the importance of understanding fees associated with card use abroad—not just the visible cost of purchases, but the “hidden” fees behind transactions.

Tips Before You Travel or Shop Online

• Inform yourself about the exact fees on your credit or debit card
• Consider using cards designed for travel or international spends
• Avoid paying in AED when overseas, and opt for foreign currency
• Use prepaid cards or multi-currency wallets, where possible
• Combine withdrawal needs to fewer trips to ATMs

Conclusion

As UAE banks raise international transaction fees starting 22 September 2025, overseas spending is about to cost more. But with awareness and smart choices, consumers can still manage expenses and reduce the burden of extra charges. Planning ahead, selecting the right card, and avoiding unnecessary fees will make a real difference for anyone who travels or shops across borders.