Traders said that the fees for money transfers using credit cards or direct debit from bank accounts are high, and reach 3.5% of the total amount transferred, which is a burden on them, especially in the large amounts, asking exchange companies to reduce this fee, especially at the current time The government and institutions have facilities to alleviate the consequences of the emerging coronavirus (Covid 19).
In turn, two officials at the Banking and Financial Transfer Corporation advised against using credit cards when making money transfers via the Internet or smart applications, to avoid fees.
And they confirmed that it is better to transfer from the personal bank account to the exchange company account recorded through smart applications or the site.
Customer complaints
In detail, the customer, Medhat A., said that he used the credit card to transfer money to his family outside the country through the smart application of a money exchange company, but he was surprised to discount 100 dirhams on the total amount of the transfer.
He added that the exchange company informed him that it deducts 2.5% when using credit cards for transfer, while the remaining percentage of the bank issuing the card goes, calling for the abolition of fees, in support of dealers in facing the current conditions and their commitment to the official instructions related to staying at home.
In turn, the customer, Hoda, said that she transferred, through an application to a well-known exchange company, a sum of money, and used the direct debit card number to withdraw directly from her balance, except that the amount of 150 dirhams was transferred to a transfer fee.
She explained: "It became clear after I called the branch of the exchange company that it deducted 2% transfer fees", expressing its surprise at this procedure, as it used money from its bank account directly and not via credit cards.
In the same context, the two dealers called: “Salama A.” and “Mohamed.” The exchange companies to cancel the high fee on the transfer operations, to help the customers to use digital channels without financial burdens, especially in these circumstances.
They explained to «Emirates Today» that they transferred money through the exchange website, and a 3.5% transfer fee, equivalent to approximately 350 dirhams, was deducted. They said that they used to pay only 15 dirhams a transfer fee for the transaction directly in the branch, which shows the big difference between the two fees.
Smart applications
In turn, the Chairman of the Board of Directors of the Banking and Financial Transfer Corporation, Mohammed Al-Ansari, said that exchange companies operating in the country have been providing smart applications for financial transfer, in addition to the "online", for a long time, pointing out that many customers use these channels easily.
He added: "Because of the conditions of the spread of the Corona virus, we urge customers to rely on these methods and not to go to the branches."
Al-Ansari continued: «There is something that must be paid attention to when transferring (online) or over the phone, which is not using credit cards, or a direct debit card, given that there is a commission of up to 2.5% of the total amount transferred, which is a large percentage that appears in large amounts, especially Therefore, it is necessary to resort to either transfer from the bank account to the exchange company account usually recorded on the website directly and this is free of charge, or use the account number instead of the direct debit card number, and this option also has no fees, as the fee in force in the branches is deducted ».
Al-Ansari pointed out that some banks deal with the use of credit cards in financial transfer, as if it were a cash withdrawal from the ATM, and this is costly, in what some banks consider "purchases" and do not impose a fee on it, stressing that exchange companies provided more than one option and alternative For the customer.
Al-Ansari pointed out that, despite the current circumstances related to the Corona virus, the branches are still operating, and are applying procedures and measures for spacing between customers, in addition to providing digital services via the website or smart phones.
Safe transfers
In turn, Osama Al Rahma, Vice-Chairman of the Banking and Financial Transfer Corporation, said that companies provided secure digital transfers through phones and websites, confirming the presence of demand for them due to the conditions related to the Corona virus.
He continued: «You must pay attention to the need not to use a credit card or direct debit in the financial transfer, because there is a commission ranging between 2 and 2.5% that banks and payment companies deduct, whether it is (Visa) or (Master Card), meaning that the discount rate does not go For exchange companies, but for the companies responsible for the payment channels, through contracting processes that take place through the payment gateway, which in turn passes the transfers through the banks, ”pointing out that this is the justification for the exchange companies imposing a percentage on the total amount when using digital channels.
Al Rahma stressed that limiting the use of a credit or debit card is minimal, in order to avoid the fees, pointing out that some banks treat the matter as if it were cash withdrawals, while some deal with the use of the cards as "purchases".
Two options
Osama Al Rahma, Vice Chairman of the Banking and Financial Transfer Corporation, said that dealers have two options under the current circumstances, away from the high fees. The first is to use the transfer from their bank accounts directly to the exchange company account and the details of that are recorded on the companies ’sites, and their fees are equivalent to the amount paid In the branches, or for the customer to go to the socially operated branches, and provide services through safe procedures and measures.