🛫Fees on international transactions

When you use your Pemo card for transactions with foreign merchants, an additional cost is incurred by the card network and the associated schemes (Mastercard or Visa).

These costs ensure seamless connectivity across the network and support cross-border fund movement, helping intermediaries manage transfer and exchange rate risks where applicable.

Pemo applies among the lowest international payment fees in the market. We believe in transparency, so we’ve listed our fees below based on the type of international transaction.

Fee type	Amount
International transaction where the merchant is outside the UAE (Cross border fee)	2%
International transaction in a foreign currency (Foreign Exchange (FX) fee)	1%

Good to know:

• Even if you select to pay in AED currency, the merchant receiving the payment might be outside the UAE, and a International payment fee will apply (common for Meta/Facebook, Google)

• The Cross-border fee is VAT-inclusive and the VAT portion is fully claimable for eligible businesses

• Pemo sends monthly tax invoices (issued on the 3rd of each month) to help you reconcile these charges for bookkeeping and VAT filing

International Transactions FAQS

Why is a international transaction fee charged?

Transactions that happen with foreign merchants would incur additional cost by the card network and the schemes associated. This ensures seamless connectivity across the network and higher risk.

Why was I charged a 2% fee for a transaction in AED?

The fee may apply if the merchant or organization you transacted with a merchant outside of UAE. While the currency is local, the payment may have been routed through an overseas entity (e.g Facebook, Google, Microsoft), triggering the International transaction fee.

Will I be charged an International Transaction fee if I transact in foreign currency?

Yes, a fee is applicable for all out of UAE transactions.

Is the international transaction fee subject to VAT and claimable?

Yes, it's subject to VAT and can be claimed with proper accounting. An invoice will be issued on the 3rd of each month for the transactions from the previous months to facilitate the process.

How do we record international transaction fees in our accounts?

Accounting treatment may differ by company standards but generally they are classified as banking transaction fees. See here for more info

Are these new fees, I have not seen them before.

These fees are not new, but were incorporated before in the transaction amount charged in AED when an international transaction was performed. In alignment with the VAT regulation we have taken steps to give you more transparency and starting July 25.

2% seems to be on the high side, is this competitive?

Yes, Pemo is among the most competitive financial providers in the market with the lowest fees for these types of transactions.

For more info on where to find fee's in Pemo and how they're reflected in your accounting system click below

📇Transactions fees: Where to find how them how they're reflected in your books