UAE Banks to Implement Higher Card Fees for International Transactions

Starting September 22, banks across the United Arab Emirates will increase fees for international card transactions. The new fee structure will impose a 3.14 percent charge on foreign card usage, affecting expatriates who frequently use their cards abroad. This change is expected to impact not only physical transactions but also online shopping and remittances, making it crucial for expats to explore cost-saving measures.

Impact on Expatriates and Financial Transactions

The increased fees are likely to have a significant impact on expatriates living in the UAE, many of whom rely on international transactions for various needs. Whether it’s shopping online from international retailers or sending money back home, the additional charges could add up quickly. This development underscores the importance of understanding the new fee structure and planning accordingly to minimize financial strain.

Strategies to Mitigate Increased Costs

To counteract these higher fees, expats can consider several strategies. One effective approach is utilizing multicurrency cards, which can help avoid conversion fees by allowing users to hold multiple currencies. Additionally, direct bank transfers might offer more favorable rates compared to card transactions. These options can provide significant savings over time, especially for those who frequently engage in international financial activities.

Introduction of Jaywan Payment System

In response to these changes, a new payment system named Jaywan is set to launch soon. While details about Jaywan are still emerging, it is anticipated that this system will offer competitive rates and innovative solutions for managing international transactions. Expats should stay informed about this development as it may present new opportunities for reducing transaction costs in the future.