Here is why buying in local currency is cheaper than in dirham in foreign transactions.
Published: Sat 17 Mar 2018, 2:29 PM
Emirates NBD, Dubai largest bank, has introduced fee on foreign currency transactions on credit cards which are paid in UAE currency.
"Effective 8th March 2018, all foreign currency transactions on your credit card which are paid in dirhams will be charged a fee of 1.15 per cent," the lender said in a statement to its customers.
The bank advised customers to make payments in the local currency during transactions on international e-commerce websites and also while travelling abroad. Because purchasing goods through international e-commerce websites or while travelling abroad in the UAE currency will cost the customers more due to higher processing fees.
"Foreign merchants/international e-commerce websites usually offer the facility to make payments for the purchase directly in AED instead of the local currency. While paying in AED seems convenient, you might actually be paying more!", the leading UAE bank said on a statement on its website.
Citing an example, the bank said customers will be paying 3 per cent processing fee as part of foreign transaction conversion fee in local currency. But customers will have to pay up to 7 per cent on their purchases when transacting in the UAE dirham while buying on international e-commerce website or during travelling abroad.
"So the next time a merchant asks you whether you like to pay UAE dirhams; Say No and choose to pay the currency of the country you are in. Be local," it said in an advisory note on its website.
-waheedabbas@khaleejtimes.com
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