Even if you’re knowledgeable about foreign transaction fees and how to sidestep them by using a no-foreign-transaction-fee credit card while abroad, a new feature from Uber might complicate your fee-free spending plans.
Uber is introducing Preferred Currency Pricing in select regions, including the U.S., Canada, the UK, and the EU, a change we learned about after a Flying Frugal team member received an update from Uber.
Starting February 27, residents in these areas will incur a 1.5% currency conversion fee if they opt to pay in their preferred currency rather than the local currency while requesting an Uber ride internationally.
This new preferred currency setting aims to help riders understand their costs while traveling by showing prices in their home currency instead of the local one. It can also mitigate some conversion fees imposed by banks and credit card issuers, which may exceed Uber’s 1.5% charge.
Related: Tips to save on overseas ATM withdrawals
If you pay with a card that has no foreign transaction fees, selecting your home currency effectively gives Uber an additional 1.5% fee when opting for a ride outside your home country.
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When the feature is implemented, Uber will automatically set your home currency to your preferred currency, but you have the option to opt out to avoid this surcharge.
To opt out, open your Uber app, go to “Account,” then “Wallet,” and select “Preferred Currency.” While it should initially set to your home currency, you can change it to “No preferred currency” to pay in the local currency when traveling. By selecting “No preferred currency,” you can circumvent the 1.5% surcharge.
Even if you forget to change this setting prior to your trip, you will still have the option to opt out of paying in your preferred currency during checkout when booking a ride internationally. However, it’s advisable to adjust this setting before your next overseas trip to ensure you don’t miss it.
Additionally, make sure that the card(s) linked in your Uber wallet do not incur currency conversion fees and stay updated on how to maximize your benefits while using Uber.
