Uber will start charging for currency conversion, where users select to pay in their home currency when using the service abroad – and it will set your home currency as a default.
From Thursday, Uber will automatically set British pounds as the ‘preferred currency’ for UK customers taking a trip in any country that uses the euro, plus Canada and the US. Journeys in other countries aren’t affected at the moment.
This means instead of being charged in the local currency (US or Canadian dollars or euros), you’ll be charged for each ride in pounds sterling.
Uber hasn’t stated the exchange rate it will use when you pay in your home currency abroad – but it has said it will add a 1.5% conversion fee on top.
Uber made the announcement in an email to customers last week about ‘preferred currency pricing’.
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The email said: “Preferred Currency Pricing (formerly Home Currency Pricing) will automatically show prices in your home currency when you travel to select countries to help make your international travel smoother and more convenient. You’ll be charged in your home currency unless you opt out.”
Uber’s move is another form of dynamic currency conversion. This gives customers the option to pay in their home currency when shopping abroad. It’s usually offered by retailers, restaurants and ATMs. When given this choice, you should always opt to pay in the local currency. Paying in pounds means the retailer’s card company does the conversion, not your bank, and this will usually be at an unfavourable rate.
How to opt out of Uber’s new fee
Uber users can adjust the settings on their app to opt out of preferred currency pricing and escape the 1.5% fee.
In your Uber app, click your account details in the bottom right, then select ‘Wallet’ at the top. From there, scroll down below your payment method(s) and you should see ‘Preferred Currency’. In there, you’ll see the option to select US dollars, euros, Canadian dollars, or GBP.
But by selecting ‘No preferred currency’, you’ll continue paying for each ride in the local currency – thereby avoiding the new 1.5% fee.
Don’t worry if you don’t see currency options straight away. As this feature is still being rolled out, it’s not yet showing in all customers’ apps. But make sure you check before you next travel abroad.
