Wednesday, Jun 08, 2011
Gulf News
Dubai: Retailers face a fine of up to Dh10,000 if they charge customers additional fees for credit card usage, a government official told Gulf News.
Retailers will be given a warning at the first instance and will be fined up to Dh10,000 in the second instance, Omar Bushahab, chief executive of Commercial Compliance and Consumer Protection Division at the Department of Economic Development (DED), said.
The directive applies only to purchase of goods for now. Customers who pay their utility bills or other government services using a credit card will still pay fees because any changes to government service fees have to be approved by the ruler’s court, Bushahab said.
While many retailers do not charge for credit card usage, they still pay a 2 per cent service charge to banks and credit card companies, they said.
Although Sharjah Cooperative Society outlets have no credit card surcharges, they pay about Dh20 million a year to banks to retrieve their cash when customers pay by credit card, Majid Salem Al Jenaid, General Manager of the Society, said.
By Deena Kamel Yousef, Staff Reporter
© Gulf News 2011. All rights reserved.
Gulf News
Dubai: Retailers face a fine of up to Dh10,000 if they charge customers additional fees for credit card usage, a government official told Gulf News.
Retailers will be given a warning at the first instance and will be fined up to Dh10,000 in the second instance, Omar Bushahab, chief executive of Commercial Compliance and Consumer Protection Division at the Department of Economic Development (DED), said.
The directive applies only to purchase of goods for now. Customers who pay their utility bills or other government services using a credit card will still pay fees because any changes to government service fees have to be approved by the ruler’s court, Bushahab said.
While many retailers do not charge for credit card usage, they still pay a 2 per cent service charge to banks and credit card companies, they said.
Although Sharjah Cooperative Society outlets have no credit card surcharges, they pay about Dh20 million a year to banks to retrieve their cash when customers pay by credit card, Majid Salem Al Jenaid, General Manager of the Society, said.
By Deena Kamel Yousef, Staff Reporter
© Gulf News 2011. All rights reserved.
