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Uber has enabled the “preferred currency” (Preferred Currency Pricing) option by default for many users travelling abroad. This feature automatically displays prices in your home currency rather than in the local currency of your destination.
Although convenient, this service always comes with a 1.5% conversion fee on every ride if you pay in your preferred currency instead of the local currency.
Please note that the option may not be visible or available on all accounts depending on the region, the app version, or the destination market.
For now, the “preferred currency” option is mainly available in Canada, the United States, and the eurozone. If you use Uber outside these areas, you will not have access to this feature and your ride will be charged in the country’s local currency.
In other words, if I’m in Peru and use Uber, for example, my Uber ride will automatically be billed in the local currency, i.e. Peruvian sol. If I don’t use a credit card without conversion fees for payment, a fee of around 2.5% will be included in the total amount.
To avoid these extra charges in the areas mentioned, follow these simple steps:
This often allows you to reduce or avoid Uber conversion fees. Also make sure your card does not charge foreign transaction fees to maximize your savings.
To avoid the extra fees associated with the “preferred currency” option, follow these tips:
The best tip we can give you with these new Uber fees is to use a credit card with no foreign transaction fees, such as the Scotiabank Passport Visa Infinite+ Card. In addition to saving you 2.5% on foreign currency transactions, you will earn 2 points per dollar spent on transit, including your Uber ride.
So, instead of having to pay between 1.5% and 2.5% in fees (depending on whether you decide to keep the option offered by Uber or not), you accumulate the equivalent of 3% in Scene+ points, which you can then use to your best advantage to pay off your trip or buy groceries.
If you do not have a credit card with no foreign transaction fees, it may be more advantageous to leave the “preferred currency” option enabled in Uber. The 1.5% fee charged by Uber is often lower than your current card’s conversion fee for foreign-currency transactions.
However, this is not the most advantageous option in the long run, especially if you travel frequently. The ideal approach is to use a card with no foreign transaction fees, combined with billing in the local currency.
Savings this way:
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