Travellers using UAE-issued credit and debit cards overseas will soon face higher costs, as banks across the country prepare to increase the foreign transaction fee to 3.14% starting 22 September 2025.

The revised fee will apply to all international purchases and ATM withdrawals.

As reported by Time Out Dubai, the new total fee includes a 1% currency conversion charge by global card networks such as Visa, Mastercard, or American Express, alongside a 2.14% bank processing fee.

This marks a significant jump from the current 2.09%.

The adjustment affects any foreign transaction, including online purchases from international merchants and payments made during travel.

For instance, spending AED 5,000 abroad would result in an added AED 157 in fees under the new structure.

Travellers are also advised to avoid Dynamic Currency Conversion (DCC), a service offered by some foreign merchants to convert transactions into dirhams at the point of sale.

While it may seem convenient, DCC often applies inflated exchange rates and does not exempt users from the foreign transaction fee.

To minimise these charges, consumers may consider using cards that waive foreign transaction fees, limiting ATM withdrawals to fewer, larger amounts, declining DCC by opting to pay in the local currency, or exploring multicurrency prepaid cards offered by UAE-based fintechs.

The UAE’s domestic Jaywan card is expected to be introduced internationally later this year.

While not yet globally available, it may offer a lower-cost alternative for international payments once launched.

Travellers are encouraged to check their bank’s fee schedules and available card options ahead of travel to avoid unexpected charges.

Featured image credit: Edited by Fintech News Middle East, based on image by jcomp via Freepik