UAE banks to raise card fees: 7 smart ways to cut overseas spending costs
UAE Banks to Raise Card Fees: 7 Ways to Save on Overseas Spending
Dubai: UAE residents will soon face higher costs when using credit and debit cards abroad. Banks have announced a hike in foreign transaction fees from 2.09% to 3.14%, effective September 22, 2025.
For frequent travellers and online shoppers, this could add up quickly. For example, a Dh5,000 overseas purchase would now incur around Dh157 in extra charges. But there are strategies to minimise the impact.
7 Ways to Reduce Overseas Card Costs
1. Choose zero-forex or low-forex fee cards
Travel-focused cards can eliminate or reduce foreign transaction fees. Experts recommend reviewing the cardās terms for hidden costs, not just perks. Popular UAE options include: FAB Infinite Travel Card, FAB Low Rate Card, and ADCB Traveller Card.
2. Opt for cashback cards
If fees canāt be avoided, select a card offering cashback on international spends, such as Citi Cashback or Al Hilal Cashback Cards, to offset charges.
3. Avoid Dynamic Currency Conversion (DCC)
At ATMs or retail checkouts abroad, you may be asked to pay in AED instead of the local currency. Always choose local currency, as DCC can add 5ā7% extra costs on top of bank fees.
4. Limit overseas ATM withdrawals
Cash withdrawals abroad attract fees and ATM surcharges. Reduce costs by:
Withdrawing larger amounts less frequently
Using cards with low or zero withdrawal charges abroad
Relying more on digital payments
5. Use prepaid multicurrency travel cards
Prepaid travel cards allow you to lock in exchange rates and avoid forex markups. Options include Emirates NBD Go4it Card and fintech wallets like Revolut or Wise, which offer competitive rates and lower fees.
6. Check your card fees before travelling
Log in to your bankās app or website to review:
Foreign transaction fee percentages
ATM withdrawal fees abroad
Hidden charges like currency settlement fees
Planning ahead avoids surprises and helps manage travel budgets.
7. Explore new solutions like Jaywan
The UAEās Jaywan payment card system is expected to expand internationally by late 2025, potentially offering lower overseas transaction costs.
Consumer Trends: Smarter Card Choices
According to Brijesh Kumar, Chief Business Officer at Paisabazaar.ae:
"Younger, digitally savvy UAE residents now prioritise zero-forex cards over reward-heavy options. Rising fees are pushing people toward multi-currency wallets, prepaid cards, and fintech solutions."
Despite higher fees, credit cards remain popular for benefits like:
Fraud protection against unauthorised use
Travel rewards including lounge access and insurance
Refund support for disputes
Bottom line: As foreign transaction fees rise, UAE residents can adopt low-fee cards, prepaid options, and smart payment practices to reduce the cost of overseas spending. Awareness and planning are key to keeping travel and online shopping budgets in check.
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