Dubai: Travelling internationally is about to get more expensive for UAE residents—at least when it comes to card payments.From September 22, 2025, UAE banks will increase foreign transaction fees to 3.14% on all purchases or cash withdrawals made using UAE-issued credit and debit cards. That’s a steep jump from the previous 2.09%, and it could quietly inflate your travel budget if you’re not prepared.What’s changing for UAE travellers?UAE banks have started notifying customers of the new 3.14% surcharge on international transactions, which applies whether you're spending at a hotel in Paris, shopping online with a US-based website, or withdrawing cash from an ATM in Singapore.The fee is typically broken down into:1% currency conversion fee from Visa, Mastercard, or Amex2.14% transaction fee charged by your bank or card issuerThis means even a modest Dh5,000 overseas spend could cost an extra Dh157 in fees alone..Travelling aboard? 7 must-knows when using your UAE debit, credit card overseas.Foreign vs currency conversion feeForeign transaction fee: Charged by your UAE bank for processing payments in a foreign country or currencyCurrency conversion fee: Charged by the card network (Visa, Mastercard, Amex) for converting AED to the local currencyThese are usually bundled together and deducted automatically.When are these charges applied?These fees can hit even if you're charged in USD, not just in euros, pounds, or yen. That's because what matters is where and how the transaction is processed—not just the currency.Common triggers:Shopping in-store or online with non-UAE merchantsATM withdrawals abroadDynamic Currency Conversion (DCC) at checkout (more on that below)Say no to “pay in AED” overseasMany travellers are caught off-guard by a practice known as Dynamic Currency Conversion (DCC)—when a foreign merchant offers to convert your total into dirhams at checkout.Sounds convenient? It’s not.DCC allows the merchant or ATM operator to set their own inflated exchange rate, which can tack on 5–7% to your bill. Worse, you may still be hit with a 3.14% foreign fee on top.Best practice? Always choose to pay in the local currency, not AED..Going cashless in UAE? Top digital payment options tourists must know.Minimise, avoid overseas card feesUse a “no foreign fee” credit card:Several UAE banks offer travel-focused cards that waive foreign transaction fees. Compare terms and choose one before your next trip.Withdraw cash in larger amounts:If using ATMs abroad, reduce frequency to avoid repeated charges. Confirm if your bank refunds international ATM fees.Avoid DCC (Dynamic Currency Conversion):Never opt for AED when asked at overseas merchants or ATMs. Choose the local currency to get the best rate.Consider using travel prepaid cards:Some UAE banks and fintechs offer multicurrency prepaid cards that lock in exchange rates and skip forex fees.Monitor fees before you leave:Check your bank’s exact foreign transaction and ATM charges under “fees and charges” or in the mobile app.Look out for the Jaywan card:The UAE's new domestic payment scheme, Jaywan, will launch globally in late 2025 and may offer reduced overseas transaction fees when fully rolled out.How quickly new card fees add upIf you spend Dh7,000 abroad over a 10-day holiday:Old fee (2.09%) = Dh146.30New fee (3.14%) = Dh219.80That’s Dh73.50 more, just in fees—without any additional benefit to you.Still helps to use credit card abroadDespite the fees, credit cards offer benefits like:Fraud protection and zero liabilityTravel rewards or cashbackEmergency card replacement or supportEasier refund claims for disputed chargesJust be sure it’s a card that’s optimised for international use—ideally, one with no foreign fees.Bottom line for UAE travellersRising foreign transaction fees mean UAE residents need to travel smarter. A little planning—such as choosing the right card, avoiding DCC, and withdrawing cash wisely—can save hundreds of dirhams per trip.And with the Jaywan card soon to expand abroad, UAE travellers may soon have a homegrown option that avoids some of these charges altogether.