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When you purchase items abroad, a store may present the option to pay in the local currency or in US dollars for American credit cards, called dynamic currency conversion.
Dynamic currency conversion actually builds in a hefty fee to select a cardholder’s home currency, and you still may pay a foreign transaction fee from your credit card for using your card abroad. Always select to pay in the local currency.
And always try to pay with a card that has no foreign transaction fees, such as the Chase Sapphire Preferred® Card, Chase Sapphire Reserve®, Ink Business Preferred® Credit Card, Capital One Venture Rewards Credit Card, Capital One Venture X Rewards Credit Card, Capital One SavorOne Cash Rewards Credit Card, Capital One Spark Cash, Capital One Spark Cash Plus, The Platinum Card® from American Express, The Business Platinum Card® from American Express, and many other options without foreign transaction fees..
Uber recently added a similar US dollar option, and made it the default for Americans using their Uber account abroad. Using this option will add a 1.5% fee to your charge.
To disable that, open the Uber app, click on Account, Wallet, and Preferred Currency. Then select no preferred currency and confirm to always pay in local currency.
That’s a nasty default setting, but perhaps not as bad as what many users allege about Uber charging more to users who have saved Uber gift cards or Uber cash in their account.
That can be avoided by adding the gift cards after a ride, and changing the payment method within 30 days of the ride.
Do you use Uber when abroad? Have you found that Uber charges more when you have gift cards saved in your account?
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21 Comments On "Change Your Uber Account Settings To Avoid Sneaky Foreign Transaction Fees; Avoiding Sneaky Gift Card “Surcharges”"
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Uber starting to flex their duopoly muscles by screwing customers
Do people find that with the Uber vouchers as well?
They don’t let me change to a gift after the ride
Where is the class action lawsuit?
Had the same and their CS were very rude and unhelpful
I’ve had some good experiences with Uber’s customer service but also some of my worst customer service experiences. They’re very closed. They either agree with you immediately or disagree immediately and it doesn’t matter how wrong they are, they have no ability to change it.
I’ve gotten totally the wrong order from the wrong restaurant and they refused to refund me for example.
I just compared my account with gift cards to my wife’s account without gift cards and the prices are the same, if anything I got cheaper on my account with the gift cards which is Uber One (comparing before any discounts)
The gift card issue sounds like a potential class action lawsuit
For those with more basic credit cards, Chase Prime Visa has no foreign transaction fees.
Lyft charges more to Pink subscribers.
Thanks dan
I found the following very interesting:
I was sitting in Brooklyn NY with a visitor from Baltimore. They wanted to take an Uber to the city. The price they got was surprisingly expensive.
So I opened my Uber and checked the for same ride, and… It was almost 20 percent cheaper!
(I had not discount or coupons)
This leaves me suspecting that they may take advantage of customers whenever they are not in their local area, and mag not know that they’re being overcharged.
When out of the US, Uber doesn’t allow using gift cards and the message I get is that the cards can’t be used in this region/country. How can that be avoided?
Since the gift card balance cannot be used in other currencies, this might be the only way to use a GC overseas.
Nope, still can’t use those abroad.
Tx Dan
do they charge more for local rides as well, when using a giftcard?
Gift cards only work in the US.
“That’s a nasty default setting…”
I appreciate the heads-up, and changed mine because I use cards that have no foreign transaction fee. However, many people likely do use cards that would impose a foreign transaction fee, which would seem to make this a good default option for them.
No, with many banks, you still pay a foreign transaction fee for charges made abroad, even if it’s converted into dollars via DCC.
When abroad I always open Grab/Bolt/DiDi rode share apps first – I evne will open GrabyBolt 1st then Lyft/Uber in the US – the apps are aware -I have seen lower prices icomparing with wifes & business phone. I have Lyft cash from my Delta Biz plat ride share credit – sometime one app is cheaper than the other.
We have 2 uber accounts . One w amex plat and loaded w gift cards, one less travel , no gift cards. Recent airport trip was much less on the first. So I wouldn’t say giftcard automatically cost more .
The issue I have w them : 3 drivers accepted ride and canceled after 30 min wait . No reason, now show
Each charged $5.50 cancel fee. Sent note to uber to refund fees (didn’t ask to compensate for my hour time waiting)
Uber responded ” we reviewed, no refund “.