In the UAE from September 22, 2025, all the banks will increase foreign transaction fees to 3.14% on all purchases and ATM withdrawals that are made.
Making international purchases with your UAE credit card or when going abroad may occasionally cause additional expenses. Not every cardholder knows that with every international swipe or online payment in a foreign currency is processed through multiple channels. Due to this, banks and card networks impose an additional fee termed as credit card foreign transaction fee. The knowledge of the functioning of this fee can assist you to not spend more than needed. It is also useful in deciding the ideal credit card to use when traveling or buying abroad.
How Much Is the Foreign Transaction Fee in UAE?
Most UAE banks charge around 3.14% per international transaction. This expense is incurred automatically. So even if the price of the product appears to be the same, the real bill is a little more. The payment is shared between the bank and the payment processor. When you are aware of the actual breakdown and options, you will be able to decrease or eliminate these additional charges.
Breakdown of Credit Card Foreign Transaction Fee in UAE
The fee is normally structured in two parts. Every part is implemented each time your card receives a different currency than AED.
1% Currency Conversion Fee: The card network such as Visa, Mastercard or American Express charges it.
Bank Processing Fee: The Bank Processing Fee is 2.14 percent in UAE charged by your issuing bank to complete the transaction.
So the total becomes:
1% + 2.14% = 3.14%
When you spend AED 1,000 money in a different currency, the amount may end up approximately AED 1,031.40. This fee is not usually highlighted during payment. It appears later on your statement.
Why Does This Fee Apply?
Whenever you buy using USD, EUR, GBP, INR, or any other currency, your bank has to exchange the amount into AED. International financial networks are involved in this conversion. All networks have a processing fee. In order to cover these operational and exchange costs, the credit card foreign transaction fee is charged. In simpler terms:
-
You pay in another currency.
-
The bank converts it into AED.
-
The network and bank charges a fee for handling that process.
Where Do You Usually Pay This Fee
This fee will be charged on every occasion when your credit card will be used to transact in a foreign currency. Common situations include:
-
Shopping online in foreign stores such as Amazon Global, AliExpress, eBay, Shein, and others.
-
Making flights or hotel reservations on websites whose prices are in other currencies other than AED.
-
Swiping your card abroad in stores, restaurants, or hotels.
-
Online subscriptions such as Netflix, Spotify, Adobe, or video games that cost USD or EUR.
The fee will be charged even when you are sitting at home in UAE provided the price is in a different currency.
Average Credit Card Foreign Transaction Fee Rates in UAE (Approx.)
|
Bank Name |
Card Network |
Currency Conversion Fee |
Bank Processing Fee |
Total Fee Charged |
|
Emirates NBD |
Visa / Mastercard |
1% |
2.14% |
3.14% |
|
ADCB |
Visa / Mastercard |
1% |
2.14% |
3.14% |
|
FAB |
Visa / Mastercard |
1% |
2.14% |
3.14% |
|
Mashreq Bank |
Visa / Mastercard |
1% |
2.14% |
3.14% |
|
RAKBANK |
Mastercard |
1% |
2.14% |
3.14% |
|
HSBC UAE |
Visa / Mastercard |
1% |
2.14% |
3.14% |
How to Avoid or Reduce Credit Card Foreign Transaction Fees
These fees might be not avoidable, but there are smart strategies:
-
Use Travel Credit Card that has no foreign transaction fee.
-
Select cashback cards on foreign purchases to recoup some of the charges.
-
Use digital wallets such as Wise, Revolut, or Payoneer which use multiple currencies.
-
Exchange money to local currency in competition exchange centers before traveling.
-
Do not pay in AED in a foreign country (do not use DCC) to avoid an additional markup.
Popular UAE Credit Cards with Low or Zero Foreign Transaction Fees
|
Card Name |
Issuing Bank |
Foreign Transaction Fee |
Best For |
Key Benefit |
|
ADCB Traveller Card |
ADCB |
0% |
Frequent Travelers |
No extra cost on foreign swipes |
|
FAB Travel Card |
FAB |
0% on selected categories |
Travel & Hotels |
Miles rewards + lower FX charges |
|
HSBC Premier Credit Card |
HSBC UAE |
Lower than standard rate |
International users |
Global banking access |
|
Emirates NBD U By Emaar Card |
Emirates NBD |
Standard (3.14%) |
Local & occasional global use |
High cashback on lifestyle |
|
Mashreq Cashback Card |
Mashreq |
Standard (3.14%) |
Regular online shoppers |
Cashback helps offset FX fees |
Final Thoughts
Knowledge on credit card foreign transaction fee can save you some money each time you make international payments. As the average rate in UAE is approximately 3.14%, it is good to compare credit cards and select one that will assist to minimize this fee. No matter how frequently you travel, which online shops you visit and which services are subscriptions, it is possible to save unnecessary fees by selecting the ideal method of paying. Also, pay attention to your statements, use local currency payments in foreign countries, and consider low fee travel cards to have a better grip on your finances.
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Emila Hales
My name is Emila Hales. I've been living in the UAE for the past five years, and I absolutely love traveling. Writing about my travel experiences is something I enjoy, and I'm excited to share my adventures with others who are passionate about exploring new places.
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