HOLIDAYMAKERS who use Uber overseas have been warned that a new charge could see them shelling out more for trips.
From Thursday (February 27) Uber will add a conversion charge to bills when riders pay in their home currency while overseas.
Uber is set to introduce a new charge to overseas journeys from Thursday[/caption]
This means that if you pay for a trip in the US in British pounds the taxi app will add a 1.5% conversion fee to your bill.
So, if ride cost £10, £10.15 will be taken from your account.
And passengers could end up further out of pocket if the exchange rate used by the app is unfavourable.
But there is a way to avoid being caught out.
To check if you’ll be charged log into your settings and see if British pounds is set as your preferred currency for payments.
When abroad change this to the local currency and then use an overseas card or other fee-free payment method to settle your bill and avoid paying more than you need to.
When introduced on Thursday the change will only apply when in Canada, the US or any country using the euro, but it is expected to be rolled out across other areas.
Uber has said that he exchange rate it’s offering will be shown on trip receipts and has confirmed that no conversion charge will be added to tip payments.
Be aware that you will only be able to select the currency you wish to pay in when using on-demand rides such as UberX, UberXL, UberBlack and UberGreen.
With other rides, such as rentals and scheduled rides you won’t be able to select the currency you wish to pay in.
When travelling abroad it’s important to consider the best cards to use when making payments.
Last week a popular bank for spending abroad announced a change to fees ahead of summer and it’s good news for holidaymakers.
Credit and debit cards routinely add fees of almost 3% when used abroad, and ATM charges can be as much as 7.95% which would add £8 to a £100 withdrawal.
The best cards for overseas travel have no fees at all so it’s worth comparing your options to get the best deal.
Remember to always opt to pay in local currency, as paying in sterling usually means getting a dismal rate from the merchant you are buying from.
You may also want to consider that credit cards can offer you extra protections when spending abroad if things go wrong, but make sure to pay off the bill in full to avoid interest.
Options for holiday spending if you don’t want to exchange currency
THERE are several specialist cards that can give you a great exchange rate.
These cards include travel credit cards and pre-paid cards which can let you pay abroad without fees or at a set exchange rate.
Travel credit cards: Travel credit cards allow you to spend money abroad without being hit by any fees or hidden charges.
But, they may still charge you for taking cash out.
We recommend the Halifax’s Clarity Card as it won’t charge you for using it abroad, nor are there any fees for withdrawing cash.
But you will be charged interest if you don’t repay your balance in full at a rate of 19.9 per cent.
And you will be charged interest on cash withdrawals until your balance is paid off too, at a rate of between 19.9 and 27.95 per cent depending on your credit score.
In other words, just because you are using plastic abroad doesn’t mean you don’t have to pay these credit cards off like you normally would.
Always pay off your balance before the end of the month with these cards to make sure that any money you saved isn’t wiped away by paying interest.
For more on travel credit cards you can read our guide here.
Pre-paid cards: An alternative to carrying cash around is to get a pre-paid card.
These cards allow you to put a set amount of cash on the card at a fixed exchange rate.
So if the rate is good at the moment, you can put money on your card and it will stay that rate when you are on holiday.
Just keep in mind that these cards can sometimes have hidden costs and charges so be sure to read the small print.
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