Bank of Maldives (BML) has rejected claims circulating on social media that it has increased fees on foreign card transactions, while assuring customers that work is underway to resolve ongoing issues affecting online transactions made using Maldivian Rufiyaa (MVR) cards.
The bank clarified that reports alleging an increase in the existing 30 percent charge to 40 percent, as well as claims that a 30 percent fee is being imposed on all credit card transactions, are false.
Responding to questions regarding the matter, BML said no such changes have been introduced and stressed that customers should rely on official information released by the bank.
The clarification comes amid growing public concern over failed online transactions and confusion surrounding fees applied to foreign purchases made with local bank cards.
What Fees Does BML Actually Charge?
According to the bank, foreign transactions made using debit and credit cards may be subject to a cross-border transaction fee of up to 10 percent when purchases are made in currencies other than US dollars, or when payments are settled through MVR accounts and MVR-linked credit cards.
BML explained that this fee is not a new charge and has existed since the bank first introduced card services. The rate varies depending on the card type and follows international banking practices commonly known as the Optional Issuer Fee (OIF).
The bank further clarified that a separate fee of up to 30 percent applies only to transactions conducted with a limited number of specifically designated merchants.
According to BML, this measure was introduced on July 1, 2024, to discourage the use of personal cards for commercial trading activities on foreign e-commerce platforms.
The bank said the 30 percent charge currently applies to transactions carried out through only six designated online merchants and does not apply to credit card transactions.
BML also emphasized that the two fees are not charged together. Depending on the type of transaction, customers are charged either the applicable cross-border fee or the designated merchant fee—not both.
Why Are These Charges Applied?
The bank said the fees are intended to cover costs associated with international payments, including foreign exchange expenses, settlement charges and operational costs linked to providing foreign currency services.
BML noted that international card transactions involve costs incurred through global payment networks and currency conversion systems, making such fees a common feature of banking services worldwide.
Efforts to Improve Access to Foreign Currency
The clarification comes against the backdrop of ongoing challenges in foreign currency availability.
Last November, BML introduced major revisions to debit card limits, allowing customers to spend up to USD 3,000 per month on travel and medical expenses, in addition to USD 250 for online purchases and USD 150 for ATM cash withdrawals.
Previously, all of these services operated under a combined monthly limit of just USD 250.
The bank said it sold USD 345 million during the first five months of this year alone. Of that amount, USD 147 million was provided to businesses, while USD 198 million was utilized through card-based transactions.
Daily Transaction Budget Causing Interruptions
BML acknowledged that a sharp increase in online purchases made using MVR cards has created significant demand for foreign currency.
To manage available reserves sustainably, the bank currently operates a daily allocation system for certain foreign e-commerce merchants. Once the daily budget is exhausted, additional transactions may fail until the next allocation cycle begins.
The issue has become a source of frustration for customers who frequently use MVR cards for online purchases.
However, the bank said work is underway to find a solution and expressed confidence that improvements will be introduced before the end of this month.
BML also reiterated that these restrictions do not affect transactions made through cards linked to US dollar accounts.
The bank further stated that it currently offers the highest foreign transaction limits on MVR cards among banks operating in the Maldives, while customers requiring unrestricted foreign spending continue to have the option of using dollar-denominated cards.
The clarification follows recent public discussions surrounding card limits, foreign currency shortages and online payment accessibility, issues that have become increasingly important as more Maldivians rely on international digital services and overseas e-commerce platforms.
