Monday, Jun 20, 2016

Dubai: Collection of additional fees for all credit card transactions is likely to be banned soon, following the implementation of a similar ban in health, education and aviation sectors.

The Ministry of Economy (MoE) has announced that its supreme committee of consumer protection recently discussed the possibility of banning the collection of additional fees for all credit card services and transactions after approving the decision issued on the health, education and aviation sectors.

The committee has earlier issued certain regulations banning all retailers across the emirates from charging extra fees on debit card transactions.

According to UAE rules, banks are authorised to collect a small fee from the merchants for credit and debit card transactions, which may go up to a maximum of two per cent of the total value of goods and services.

However, the central bank rules strictly prohibit merchants from passing along that fee to customers.

However, the ministry didn’t elaborate when and how the decision will be implemented.

Minister of Economy, Sultan Bin Saeed Al Mansouri, headed the meeting of the supreme committee that discussed several issues, including the credit card fees.

The committee discussed proposals to adopt a certified guidance document and standardised contracts for electronics and criteria for auto garage approvals in the UAE as well as ways to organise training programmes on approved standards and procedures.

Al Mansouri also sought ideas on ways to support the development of the UAE’s consumer protection system.

He emphasised the importance of developing tools and regulations to manage electronic services in a manner that safeguards consumer rights and uses the best international practices.

He added that the Ministry counts consumer protection among its top priorities given its direct impact on market stability.

Staff Report

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