Retailers in UAE will be penalised for charging extra processing fees on credit card or debit card payments, the commercial compliance and consumer protection division (CCCP) CEO Omar Bu Shahab has said.
Highlighting that the extra fee is in clear violation of the consumer protection law, Bu Shahab was quoted by Gulf News as saying, "The card processing payment should be offered as a free service across all UAE retailers and slapping an extra two per cent charge is illegal."
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According to the Supreme Committee of Consumer Protection in the UAE, regulations were in place that restrict all retailers in the country from charging extra fees on bank debit cards.
Recently, a private school in Dubai requested parents to pay 2% extra fees on credit card or debit card payments for anything related to school fees.
Commenting on the announcement made by the private school, Bu Shahab said that these fees go to the retailers and not to the bank.
"In this case the school is violating the rules," he warned.
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By GlobalDataMeanwhile, Bu Shahab appealed to all consumers to submit a formal complaint to the department so that they can take quick action by sending notice to the retailer.
