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UAE: Dubai waives commission on fees paid with bank direct debit

Issac John /Dubai
issacjohn@khaleejtimes.com Filed on September 19, 2021
Customers’ payments of government services fees through credit cards continue to occupy the largest share among the government-approved smart payment channels. — File photo

The Dubai government allows customers to pay fees for more than 1,200 services through the e-Pay portal.

Dubai’s Department of Finance (DoF) announced on Sunday that it would waive the commission on the payment of all government transaction fees that customers incur when paying the fees from their current and savings bank accounts, through the smart Dubai portal (e-Pay).

DoF said no commission would be collected when government customers pay the service fees of any Dubai government entity through the e-Pay portal, with the bank direct debit, confirming that “the commission collection has now become invalid”.

“Exceeding Dh150 million annually, DoF will bear the costs of commissions paid to the authorised collectors of government fees through smart channels, on behalf of customers, being individuals or companies,” said Abdulrahman Saleh Al Saleh, director-general of DoF.

“Symbolising the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, we want to encourage digital transformation and raise customer happiness.”

Customers’ payments of government services fees through credit cards continue to occupy the largest share among the government-approved smart payment channels, said Jamal Hamed Al Marri, executive director of the Central Accounts Sector at DoF.

"This is attributed to the ease of using credit cards and the privileges that banks offer their holders. We found that many customers, on the other hand, want to pay government transaction fees through direct debit cards linked to their bank accounts, both current and saving. Therefore, we decided to cancel the commission that was imposed on the use of direct debit cards, in order to encourage customers, and provide them with more payment options,” Al Marri, added.

“This step comes in support of the demand for smart payment channels, especially since the Government of Dubai will become completely paperless next December, to achieve the objectives of the Dubai Paperless Strategy,” he said.

The Dubai Paperless Strategy was launched by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council, back in February 2018, with the aim of digitising all internal and external government transactions and making them paperless.

DoF and the Dubai Digital Authority, intends later this year to make the smart payment service available through linking the e-Pay portal with the UAE Central Bank platform for direct debit, which includes more than 14 banks.

The Dubai government allows customers to pay fees for more than 1,200 services through the e-Pay portal, which is managed by the Dubai Digital Authority and is subject to DoF supervision. Payments can be made through credit cards and direct debit cards from bank accounts, in addition to ‘noqodi’ e-wallet.

— issacjohn@khaleejtimes.com

author

Issac John

Editorial Director of Khaleej Times, is a well-connected Indian journalist and an economic and financial commentator. He has been in the UAE's mainstream journalism for 35 years, including 23 years with Khaleej Times. A post-graduate in English and graduate in economics, he has won over two dozen awards. Acclaimed for his authentic and insightful analysis of global and regional businesses and economic trends, he is respected for his astute understanding of the local business scene.





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