Read this before you use Uber on your next vacation. The rideshare company wants to add a 1.5% surcharge every time you use their service outside of your home country. If you go to Europe and use Uber, they want to charge you 1.5% extra on every ride. If you go to Canada, 1.5% more than prevailing prices. But this charge isn’t mandatory. It’s a tax on people who don’t pay attention. You can opt out, but you need to know how!
Dynamic Currency Conversion is a scam everywhere it’s offered. And Uber is defaulting to it. It may take a little while to roll out to your account, but you can set your own preference not to let them do it.
- They charge you a fee to be billed in your home currency
- And if your credit card imposes foreign transaction fees, you still get hit with those because it is still a foreign transaction (regardless of what currency it is in).
The only reason to do this is for Uber to earn an additional 1.5% on the transaction. It saves you nothing, and you are highly unlikely to get a better rate than what your financial institution provides in doing the conversion (even if they’re hitting you for 1%) since this on top of any foreign currency spread that Uber earns, even if they promise no markup or additional fee.
Here’s how they explain what’s happening, and how you can prevent the surcharge,
By default, Uber may assign your home currency as your preferred currency. The currency may be assigned to users gradually over a period of time but you can make changes to your currency preferences at any time in your Wallet within the Uber app. Your currency change will be reflected starting the next eligible trip.
There’s literally nothing I can conjure that Uber does for your benefit, or for the benefit of drivers. A company that once revolutionized transportation now seemingly spends all its focus trying to squeeze both sides of the two-sided market it created. None of that’s surprising – it’s led by the former CEO of Expedia of all things.
I saw this and thought that’s a con! I usually purchase uber cash before we go on international trips where I am the ultimate payor.
Thank you for the heads up. Made the change 2 weeks before a trip to Lisbon.
Enshitification at it’s finest.
I’m generally against Dynamic Currency Conversion, but I can see two scenarios where it can be beneficial to the Uber customer.
First, many people have credit cards with foreign currency conversion fees. If Uber runs these charges as domestic charges in USD, then the customer might come out ahead. For example, the Citi Double Cash card has a 3% foreign transaction fee. 3% is more than 1.5%.
Second, I have bought Uber credit from Costco at a 25% discount. Assuming Uber runs these as domestic charges, then I would be able to use the discounted credit to pay for the ride. I believe if I charged my Uber ride in local currency I would not be able to use my prepaid credit.
Thanks, Gary. This is helpful. I loathe when companies try to sneak this kinda stuff by us. They manufacture a fake problem, then charge us for the ‘convenience’ of fixing the problem they created. We, as consumers, must to be hypervigilant because hardly anyone is looking out for us, even if it’s an actual scam or fraud.
@rdinsf – US dollar charges incurred in a foreign country are still foreign transactions subject to 3% foreign transaction fees. Uber charges you 1.5% *and* the credit card charges you 3%.
And this doesn’t let you use Uber Cash in a foreign country “Preferred currency pricing is currently unavailable with Uber Cash”
Link to Uber website is broken Gary
@ Gary, your understanding of Dynamic Currency Conversion and, in general, credit cards is dismal.
DCC is always a scam. The exchange rate used by DCC to convert the transaction currency into your home currency is always — yes, always, the retail exchange rate and not the wholesale rate used by the various card associations. The difference can be as much as 3%. Then add the 1.5% that Uber charges.
As for those credit cards with foreign transaction fees (FTF), you failed to read the card’s T&C. The conditions under which the FTF applies is not the same with every credit card company or, indeed, every credit card within a credit card company’s portfolio. about 1/2 of credit card companies charge the fee based on the fact that the charge to your card was initially in a foreign currency. Using DCC completely avoid that issue and results in absolutely no FTF.
Other credit card issuers, though, charge the FTF based on the geographical location of the merchant. There are merchants along the US side of the US – Canadian border why charge in US34, but the FTF applies because their merchant services provider is in Canada. Only if your credit card issuers charges the FTF based upon the merchant’s location will using DCC result in a FTF.
Also, if Uber uses DCC to process your payment and they did not conspicuously and clearly point this out at the moment of sale, you will be successful with a credit card chargeback. All card associations rules require such disclosure at the moment of payment.
Anybody who travels outside the U.S. and doesn’t have a card with zero foreign fees is making a big mistake, even if it’s a once-in-a-lifetime trip. There are numerous cards with no annual fee, no foreign fees, and a rebate of 1 ½% or more.
Yes, can we please say it louder for those in the back
DCC is a scam
Whoever invented DCC deserves to burn in hell as much as OJ Simpson.
Gary, do these AI generated images really add anything to your posts? “uptrate”? “Ubor”? Various other made up words and fake images? Your blog is valuable, why make it look cheap? Looks like the shitty “Sky Skylar” posts.
I love Ubor.
To change
Go to Uber App > Account > Wallet > Preferred Currency > No Preferred Currency > Confirm
You’re welcome!
@ Gary — Please provide instructions on how to turn off DCC in the uber app. I’ve looked hogh and low, and I cannot find anything regarding DCC in the app.
Thanks for the heads up on the latest Uber money-grab.
The link is broken. Do I set the “pay in preferred currency” on the country I’m in at the time and then change it back when I return home or do I press the “no preferred currency” tab.
These corporate crooks need there heads on a stick. It is getting out of hand. Greedy idiots.
Please provide instructions on how to turn off DCC in the uber app. I’ve looked and I cannot find anything regarding DCC in the app. Your link does not work, I think they are hiding the information.
I bet the setting is ‘no preferred currency’ which then says use local currency.
rdinsf – I have never seen less than 2-3% built into dynamic currency conversion. Then there is the 1.5% fee added on.
Uber’s Dynamic Currency Conversion (DCC) can lead to unfavorable exchange rates and extra fees when you’re charged in a foreign currency. To avoid DCC while using Uber, follow these steps:
1. Always Pay in the Local Currency
• When using Uber in another country, the app often gives you the option to pay in your home currency or the local currency.
• Always choose the local currency to avoid Uber’s exchange rate markup.
2. Set Your Payment Method to a No-Foreign-Transaction-Fee Card
• Some credit cards, like those from Chase Sapphire, Capital One, or American Express Platinum, don’t charge foreign transaction fees and use Visa/Mastercard’s better exchange rates.
• If your card charges foreign transaction fees, consider using a different payment method.
3. Use a Local Payment Method
• If Uber offers local digital wallets (e.g., Apple Pay, Google Pay, AliPay, Paytm, etc.), they might bypass Uber’s currency conversion and use the wallet’s exchange rates.
4. Check Uber’s Price Before Confirming a Ride
• If you see the fare listed in your home currency instead of the local one, switch your currency setting in the app or change your payment method.
5. Contact Uber Support If Overcharged
• If you were charged in your home currency without choosing it, contact Uber support via the app and request a refund or adjustment.
Would you like specific instructions based on a country you’re traveling to?
+1 for what Ltl said. Those AI generated cartoons do nothing to enhance the website or the content.
@postnobills @Ltl — Let’s whine about ‘typos’ and grammatical imperfections, too. Let it go, fellas.
THANK YOU! I went into the Uber app and changed my preference to “no preferred currency”. My Gold AMEX and Hilton Honors AMEX cards carry no transaction fees (except ATMs) and are my preferred credit cards when I travel. WHEW! I’ travel to London quite a bit. I note that (I’m guessing due to the high “zone” charges imposed on London drivers) that Uber and London taxis are about the same price. The only advantage to Uber (in London, I guess) is that taxis rarely go down side streets where I can flag one down. Uber is door to door. I’m glad I saw this ripoff!
@ Win — This must not be on everyone’s account yet. I have spent an hour hunting for this online and in phone, and it doesn’t appear anywhere in my account.
@Gary Leff I remain disappointed that you continue to use the AI generated “artwork”. I don’t care whether the images are attractive or not.
Please consider that every single time you post one you are actively supporting the process which is founded on – and depends on – the theft of the work of an actual, human artist (or creator, or photographer, or author, etc).
Maybe you don’t care if people steal the words that you post here (or maybe your own photos?). How about if they got ahold of a copy of a report you made to one of your employers, and passed that work off with a couple modifications as their own work?
Perhaps thinking about it this way will help you to see the nature of this aspect of AI.
+1 @Ltl
+1 @postnobills
For those who can’t find it, I think I read somewhere that it is rolling out incrementally. I use two different Uber accounts on two different iPhones. One account/phone had it and the other didn’t, so just wait a few days and try again.
Even updating the app did not bring up the DCC option yet on one.
They can only get away with this because they have an Arbitration Agreement that makes it impossible to sue them or ever challenge the legality of this unfair and deceptive practice in court, or to bring a class action lawsuit which is the only economically viable way of doing this. Arbitration Agreements make junk fees profitable and incentivize bad behavior like this.
*”US dollar charges incurred in a foreign country are still foreign transactions subject to 3% foreign transaction fees. Uber charges you 1.5% *and* the credit card charges you 3%.”*
@gary Do we know if these transactions are run as foreign transactions in USD or run in the US as a domestic charge? I assumed (perhaps incorrectly) that Uber would run these charges in the US – there is no benefit to Uber in running these USD transactions as foreign charges, and as you pointed out there is a major downside for the customer in Uber doing so.
The email announcement says ” No additional foreign transaction fee”, the word “additional” is certainly ambiguous but seems to suggest that you won’t pay a foreign transaction fee.
Thanks! Just opted our for P1 and P2.
This is really informative. As an aside I got bored pretty quick after retiring at 70 and started driving for Uber and Lyft. The fees that they deduct from my ride or astronomical some of them are imposed by government such as airports and they deduct a pretty hefty insurance fee which I think they are padding. Bottom line I am lucky very lucky to get half of what the passenger paid. Uber and Lyft typically charge 20 to 30% commission on top of all these fees.
Just curious I wonder if using an American Express card with no foreign transaction fee will also negate this bogus charge as American Express does not allow dynamic currency conversion. Since they use their own payment system the merchant cannot override American Express on this issue it won’t even show up on the merchants terminal. I wonder if it’s applies to Uber as well.