UAE may stop credit card fees on govt services

UAE authorities again warned retail dealers against levying extra fees on customers’ credit cards, saying this is an illegal practice that is not enforced in any other country.

They also urged credit card holders to report such offences.

The Ministry of Economy said dealers charging such fees on visa and credit cards are breaking the consumer protection law and are liable to pay a Dh100,000 fine, adding that 121 offenders were fined last year.

Hashim Al Nuaimi, consumer protection director at the Ministry, said payment by credit cards accounts for more than 90 per cent of the total retail transactions in the UAE while the rest covers government services.

“Dealers must not charge any extra fees on credit cards used in any transactions involving goods.

“We urge customers to defend their rights and report any such offences to the Ministry to take action,” he told the 'Emarat Al Youm' daily.

He said the ministry is considering cancelling any fees on credit card payment for government services, but added such a step will take time on the grounds dealing with government services is more difficult that goods.

“Goods normally involve a profit margin set by traders. Therefore, they should not impose any fee on credit cards by clients who do not have cash.

“Charging credit cards is not enforced in any country in the world and there it is considered an unjustified exploitation of consumers,” he said.

ALSO READ:

Apple’s launch ‘gaffe’: Popstar ‘accidentally’ leaks iPhone 5 pics

UAE video debate: Parents' essential back-to-school survival kit

'Dead dummy' triggers panic on Saudi road

Follow Emirates 24|7 on Google News.