Most credit cards come with standard fees and charges. However the types of fees and their amounts can vary. It is not enough to simply look at the Annual Fees and choose a credit card. Here’s a list explaining the different credit card fees and charges every card holder in the UAE should know about.
This is the charge known by most credit card holders. It is charged on the outstanding balance payable after the due date. It ranges from 2% to 4% on a monthly basis, aggregating to an annual rate of 24% to 48%.
A standard annual fee is charged on most cards in the UAE. You need to pay this fee irrespective of your usage of the card. Sometimes, banks waive the annual fee for a card for the first year or a designated period chosen at the bank’s discretion.
Duplicate statement fee
Banks usually charge this fee every time you request for a duplicate credit card statement. For banks that issue e-statements periodically, requesting for a physical copy mayincur a processing fee.
Late payment fee
This is usually a fixed figure or a percentage of the outstanding balance that is charged every time a cardholdermakes a late payment.
Cash withdrawal fee
This is again a fixed figure or a percentage of the transaction value, whichever is higher in most cases, that is charged every time a user withdraws cash from the ATM using the credit card.
Every time a credit card user exceeds the credit card limit, he/she is charged with this fee, which is usually a fixed amount or a percentage of the overdrawn amount.
Returned cheque charges
This is a fixed amount which is charged every time a cheque is dishonouredand returned.
Foreign currency transactions
A processing fee is usually charged every time a user uses the credit card outside the UAE. In such cases, the transactions made in other local currencies are converted to the billing currency using current market rates, thus attracting a processing fee.
This is usually a percentage of the monthly outstanding balance which is charged towards insuring your credit card.This fee ensures thatin case of any unforeseen and unfortunate circumstances, your credit card dues will be covered by the insurance firm on the basis of the policy. Some banks offer an involuntary loss of employment cover which will take care of your credit card outstanding in the event that you lose your job.