Avoid Extra Charges with Uber’s Preferred Currency Pricing Feature

Uber riders traveling abroad may end up paying extra fees unless they disable a new feature in the app. The feature, called Preferred Currency Pricing, automatically converts ride fares into the rider’s home currency but applies a 1.5% conversion fee.

This means that an American in Europe will see prices listed in U.S. dollars instead of euros, or in dollars rather than pesos when visiting Mexico. While Uber claims this helps users understand ride costs more easily, the fee could result in unnecessary expenses for those whose credit cards do not charge foreign transaction fees. The introduction of such pricing adjustments comes at a time when Uber’s Q4 revenue beat expectations, yet its stock performance declined despite strong financial growth.

How the New Currency Conversion Works

Uber’s Preferred Currency Pricing allows automatic fare conversion into the rider’s home currency, charging a fixed 1.5% fee for the service. However, many credit cards offer free foreign transactions, meaning they convert currency at standard exchange rates with no additional charges.

Brian Kelly, a travel expert and founder of The Points Guy, advised:

"The only way this would make sense is if you have a credit card that charges you a 3% foreign transaction fee. In this case, choosing the 1.5% through Uber would make sense. But most credit cards don’t charge a foreign transaction fee."

Disabling Preferred Currency Pricing

Riders who want to avoid the 1.5% surcharge can disable the feature in the Uber app. To do this:

1. Open the Uber app.
2. Navigate to Account → Wallet.
3. Scroll to the Preferred Currency section.
4. Select “No preferred currency” and confirm.

By doing so, Uber riders can prevent unnecessary fees and allow their credit card providers to handle the currency conversion at a potentially lower or zero cost.