UAE Merchant Account and POS Terminal for Free Zone Companies 2026
UAE free zone companies with physical premises or event-based sales need point-of-sale (POS) payment acceptance. This guide covers how UAE free zone companies can get merchant accounts, POS terminals, and payment acceptance in 2026.
Can Free Zone Companies Accept Card Payments?
Yes — UAE free zone companies can accept Visa, Mastercard, and AMEX payments via merchant accounts and POS terminals. To set up card acceptance, the company needs: an active UAE business bank account (with the acquiring bank or a compatible bank), a UAE trade licence, and a physical address (or verified online store URL for e-commerce acceptance).
UAE POS Terminal Providers
- Network International (Dot Pay/Ngenius): UAE’s largest payment processor; terminals available to free zone companies via bank partnership; AED 200–500/month rental
- Mashreq Pay: Mashreq Bank’s POS solution for SMEs; fast approval; AED 150–400/month
- FAB Pay: First Abu Dhabi Bank; good for larger businesses
- Sum Up: global POS provider accepting UAE clients; mobile card reader
- SmartPay: UAE POS provider focused on SMEs and retail
MDR (Merchant Discount Rate) in UAE
UAE merchants pay a percentage of each transaction value to the payment processor:
- Visa/Mastercard domestic (UAE-issued cards): 0.8–1.5% MDR
- Visa/Mastercard international: 1.5–2.5% MDR
- AMEX: 1.8–3.5% MDR (higher, but AMEX users tend to have higher spending)
- UAE Central Bank has capped domestic credit card MDR at 1.5% for most merchant categories
Online Payment Gateway vs Physical POS
- Physical POS: card present, lower fraud risk, lower MDR (domestic); for retail shops, exhibitions, pop-up events
- Online gateway: card not present, higher MDR; for e-commerce, subscription billing, invoice payments
Free Zone Company POS Approval
Free zone companies can get POS terminal approvals but the process may take slightly longer than mainland companies at some banks. Required: active UAE business account (same bank as POS provider preferred), trade licence, 3–6 months’ business bank statements (if established), or initial deposit guarantee (if new). Timeline: 1–4 weeks for approval and terminal installation.