When Americans pay for something in other countries, they ask if they would rather charge their account in local currency or dollars, there is only one right option to save money.
So why does Uber automatically force its customers to make the wrong choices?
This is a question related to currency conversion. We will try to explain this as simply as possible.
Is it better to pay for Euro (or other local currency) or US dollars?
When you travel internationally with your credit card, your credit card issuer has negotiated the exchange rate. Your card automatically converts foreign currency for you as part of its standard service.
Credit card issuers such as Mastercard and visas have so much power in the industry that they can determine the exchange rates they buy, and those rates are not bad. In fact, they are much better than you end up paying at a money exchange stall at the airport.
However, if the transaction screen gives you the option to pay in your own currency, something else is happening even if you are not in your home country. This option is extended to you by the vendor rather than your credit card company.
The service is called Dynamic Currency Conversionor DCC, additional options that vendors can expand to customers. This option seems convenient, but is actually paid by a lower exchange rate that your credit card company already offers. This is a way for the middleman to get and cut it by yourself between you and your credit card bill.
Travelers have poor exchange rates when they agree to pay for credit card fees in this currency rather than in the local currency.
In other words, you lose money. You should just stick to the local currency.
That’s why it’s so disappointing to see Uber pull out such dirty tricks.
How to prevent Uber from charging you DCC fees
As noticed Flight AgreementUber uses dynamic currencies to convert default values in its apps, which allows Uber to automatically and unnecessarily browse the small amount of each transaction that users make when they are abroad.
To disable this option, open the Uber app
first step: Tap accountThen wallet. Once you reach the wallet part.
There, most Uber users don’t even know there are three menu pages, and Americans will find that Uber automatically sets “US Dollar” to the default value.
Your credit card does not set DCC to default. However, Uber quietly (we might add) and masks the configuration for its own purposes.
In a pop-up print at the bottom of this easily overlooked settings page, Uber acknowledges that the choices the app has made for you will actually result in 1.5% of each fare you purchase.
By default, Uber is not allowed to browse your money.
Step 2: At the bottom of the payment method list, click Set preferred currency. This will take you to the final menu, which you need to change.
Step 3: At the bottom of the results list, look for “There is no preferred currency. ”
Only after you click “No preferred currency” will you see previously hidden text to explain that this method allows you to “always pay in local currency for the ride”. Anyway, your credit card can do it without this interference. That’s that environment should It is the default setting in Uber.
But if you click “Not preferred currency”, then Uber suddenly shows you more previously hidden words. This time, it warns you that your choice means you “may charge additional fees from your payment provider.” Presumably, Uber does this to prevent you from entering this better environment, thus making Uber less money.
Don’t let Uber scare you. It’s almost certain that you won’t charge extra fees for this option, especially if your credit card is no longer charged for foreign transaction fees. (For travelers, the best credit cards no longer charge this fee.) If you doubt us, please continue to ask your credit card issuer if payments in local currency will result in additional fees.
Step 4: Confirm Your choice and exit from Uber wallet. Now, Uber will no longer be able to cheat you out of your extra 1.5% and you don’t have to pay at all.
It’s exhausting when the service burys pre-selected options on the rare environment screen, and even more exhausting, Americans have the right to cut down on anyone who is doing this incremental pick-up on the company giant.
But, making Uber’s convenience fee is your education: if paying the least amount is your goal, you should always reject dynamic currency conversions.