Credit card fee at petrol stations abolished

Abu Dhabi: Credit card fees charged at petrol stations for buying fuel has been abolished by the Ministry of Economy’s Higher Committee for Consumer Protection, it was announced on Tuesday.

4 November 2015

The committee called the practice unjustifiable and directed all petrol stations not to add the fee.

A fee of Dh2 was being charged for every transaction at petrol stations.

The Ministry of Economy has discussed with several petrol stations working across the country cancelling credit card fees and adjusting the credit card machines so the fee is not deducted.

Dr Hashim Al Nuaimi, head of the Consumer Protection Department at the ministry, said the fee is unjustifiable especially after the announcement of deregulation of fuel prices.

“The move aims at lowering the burden on consumers and protecting the rights of consumers. Several complaints were received by the ministry on this matter,” he said. He added that a fee of Dh2 was being added for each transaction at some of the petrol stations across the UAE.

Abdullah Salem Al Daheri, CEO of Adnoc Distribution, has confirmed that the company does not charge any additional fee on credit or debit card purchases of fuel products or services and other merchandise at any of its service stations and outlets in the UAE.

Reiterating that Adnoc Distribution has never implemented such charges in the past as well, Al Daheri said in a statement, “We have always placed the interests of our customers as a top priority. Adnoc Distribution will continue to endorse this customer-focused approach for the benefit of all end-users across the UAE.”

Mohanish Agni, Visa’s Head of Merchant Sales and Solutions, Mena (Middle East North Africa), welcomed the directive from the ministry to revoke the credit card fees for fuel purchases.

“This exemplifies the UAE’s progressive leadership and consumer-friendly stance, and aligns with Visa’s objectives in this market — which is to offer easy, secure and convenient payment solutions that enhance the payment experience for consumers.”

“Visa believes that consumers should have the opportunity to choose the most convenient payment method, while surcharges on card transactions curb this freedom of choice and deter efficient cashless payments. We believe this move will be well received by card-holders in the UAE.”

A senior banking executive told Gulf News that petrol stations don’t have the right to add any kind of fees using the credit card. Calling it an illegal practice, he said the contract between the banks and the private businesses who use credit card machines in the UAE does not stipulate imposition of any kind of fee.

“If they [private businesses] do it, card-holders have a right to refuse and file a complaint against them,” he said.

Enoc/Eppco did not get back to Gulf News when asked for a comment. Emarat could not be contacted.

Al Nuaimi asked consumers to contact the Ministry of Economy or Consumer Protection Department by calling 8001222 or 600522225.