DOF waives commission on government transactions paid by “direct debit”
The Dubai Government’s Department of Finance (DOF) announced the cancellation of the commission on the payment of all government transaction fees that customers incur when paying their current bank and savings account fees, via the Dubai smart portal (e-Pay).
The DOF explained that no commission will be collected when government customers pay the service charges of any government entity in Dubai through the e-Pay portal, along with direct debit, confirming that “commission collection is now invalid.” .
“In excess of AED 150 million per year, the DOF will bear the costs of commissions paid to authorized collectors of government royalties through smart channels, on behalf of clients, whether individuals or businesses. “, confirmed His Excellency Abdulrahman Saleh Al Saleh, Director General of DOF. “Symbolizing the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai, we want to encourage digital transformation and increase customer happiness.”
Jamal Hamed Al Marri, executive director of the central accounts sector of the DOF, revealed that customer payments of government service fees by credit cards “continue to occupy the largest share among the smart payment channels approved by the government. This is attributed to the ease of use of credit cards and the privileges that banks offer to their cardholders.
“We have found that many clients, on the other hand, wish to pay government transaction fees through direct debit cards linked to their bank accounts, both current and savings. Therefore, we have decided to ‘cancel the commission that was imposed on the use of direct debit cards, in order to encourage customers and offer them more payment options, “he added.” This step supports the demand for smart payment channels, especially as the government in Dubai will go completely paperless next December to meet the goals of Dubai’s paperless strategy. “
The Dubai Paperless Strategy was launched by His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council, in February 2018, with the aim of digitizing all internal and external government transactions and make them paperless.
Link with the Central Bank
In a related context, the government of Dubai, represented by DOF and the Dubai Digital Authority, intends later this year to make the smart payment service available by linking the e-Pay portal to the direct debit platform. Automatic Central Bank of the United Arab Emirates, 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 operated by the Dubai Digital Authority and is subject to oversight by the DOF. Payments can be made by credit cards and direct debit cards from bank accounts, in addition to the “noqodi” electronic wallet.