The National published an article on the personal finance related query of a Dubai resident and Souqalmal CEO Ambareen Musa’s response on the same.

Is it illegal to levy extra charges for payments made by credit card? I was paying for something the other day and didn’t have any cash on me. But when I said I would pay by credit card, the merchant said there would be a surcharge. Is that allowed? KN, Dubai

This is what Ambareen Musa had to say:

This is a common complaint voiced by many consumers in the UAE. While various regulatory agencies have cracked down on commercial establishments charging additional fees on credit card transactions, a definitive law banning all such establishments from doing so is yet to be introduced. Some retailers are still charging an extra fee on credit card transactions, thereby forcing customers to pay in cash to avoid the additional cost.

Current regulations in the UAE authorise banks to levy an additional charge on merchants for both credit and debit card transactions. This is subject to a maximum fee of 2 per cent of the value of goods and services sold. The Ministry of Economy and its Higher Committee for Consumer Protection has been working towards prohibiting merchants from passing on this fee to the cardholder.
For full article go to The National