Domestic and international banks in the United Arab Emirates increasingly are looking to raise fees tied to credit cards in the face of sagging loan revenue, local news reports indicated.
A spokesperson for Royal Bank of Scotland confirms the bank this month introduced a 10 dirham (US$2.72 or 1.98 euros) monthly maintenance fee on its “free-for-life” credit cards. “The change is part of our regular review of fees and charges,” the spokesperson says
Another news report indicated that Dubai-based Mashreq Bank will follow Royal Bank’s lead and put a 10 dirham monthly maintenance charge on some of its credit cards starting next month. Officials at the bank were not immediately available to confirm the report.
In December, HSBC UAE began levying a 25 dirham charge on over-the-counter credit card repayments at teller windows.
Customers can avoid the charge by using ATMs to access cash for payments, an official at the bank tells PaymentsSource.
HSBC in September also began levying a 10 dirham charge for receiving paper credit card statements.
“These card issuers are trying to reinvigorate their revenue streams,” which have been affected both by the global crisis and the credit crisis in Dubai, Mrinalini Manral, analyst at Mumbai-based research firm Dassler Business Intelligence, tells PaymentsSource. “A rise in fee and charges is an easily deployed measure to pump up revenues in the face of losses.”
