One of my regular travel tips that I share with readers (you can sign up for my newsletter for free at JohnnyJet.com) is that when you’re traveling internationally, to always pay in local currency. It makes my blood boil when I encounter ATMs (see photo below) or stores, like Harrod’s in London, that prompt you to pay in U.S. dollars instead of the local currency when using a U.S. credit card. While they may seem like they’re offering convenience, they’re actually costing you more.
The prompt to pay in US dollars may come across like the seller is doing you a favor when in reality, you’re getting fleeced out of your hard-earned money. Now, it seems like Uber is following suit. Thanks to a tip from my friend Kevin, I came across an email from Uber outlining a new policy that I consider a money-drainer for consumers.
According to Uber: “Starting February 27, 2025, 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.
“Here’s what you can expect:
- 1.5% currency conversion fee included in the trip fare
- No markup on exchange rate
- No additional foreign transaction fee”
In Uber’s Frequently Asked Questions (FAQ) section, they claim that the new policy will ensure “no more exchange rate surprises,” but in my opinion, the only surprise will be the inflated bill for unsuspecting customers.
Also, in their FAQ section they admit if you opt out you may be charged less by your bank or credit card company: “If you choose to pay in a preferred currency instead of the local currency, you’ll be charged a 1.5% currency conversion fee by Uber. If you choose to pay in the local currency, your bank or payment method provider may charge a conversion fee higher or lower than 1.5% and additional foreign transaction fees may apply.”
Uber does give this good advice: “We recommend checking your credit card or other payment method terms to learn more about fees that may apply to foreign transactions to decide which option is best for you.” Here are some credit cards that have no foreign transaction fees.
If you’re a savvy traveler or better yet money manager then you already travel with a credit card that has no (as in zero) foreign transaction fees so Uber would just be making a 1.5% fee for doing nothing more.
This seems like their board sat around and said how can we make more money from our customers without them realizing it?
Here’s how to opt out of Uber’s new Preferred Currency Pricing
To opt out of Uber’s new Preferred Currency Pricing and avoid being charged in your home currency, follow these steps or click this link while on your phone:
- Update the Uber App: Ensure your Uber app is updated to the latest version.
- Open the Uber App: Launch the Uber app on your device.
- Go to Account: Tap the Account icon in the bottom-right corner of the screen.
- Navigate to Wallet: In the Account menu, select Wallet.
- Adjust Currency Preferences: Once in the Wallet section, you should be able to change your currency preferences. If you’re using the app after the update, you can adjust your settings to pay in the local currency instead of your home currency.
Remember, the currency preference change will only take effect starting from your next eligible ride, so it’s best to make the change before booking your next trip.
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