Why am I being charged extra on Uber?

That Extra Uber Charge: Why It’s There and Why You Don’t Need to Panic

Ever looked at your bank statement after an Uber ride and noticed an extra charge that seemed to come out of nowhere? Don’t worry, you’re not alone. This often-confusing charge isn’t actually an extra fee, but rather a temporary authorization hold placed by Uber at the start of your trip.

Here’s the breakdown:

Why the Hold?

Uber uses pre-authorization holds to ensure enough funds are available to cover your estimated fare. It’s a safety measure, like a pre-approval for your ride, that helps avoid any issues when the actual fare is calculated.

The Mechanics:

When you request a ride, Uber places a hold on your payment method for an estimated amount, usually slightly higher than the anticipated fare. This hold is not a charge; it’s simply a temporary reservation of funds.

What Happens After the Ride?

Once your ride is complete, the actual fare is calculated. Uber then releases the hold, returning the unused funds back to your account. In most cases, this process takes a few business days.

The Catch: Cancellation and Pre-Authorization

Even if you cancel your ride before it begins, the pre-authorization hold will still be placed. This is because Uber still needs to ensure that funds are available in case you later decide to re-request a ride. The hold will eventually be released, just as it would after a completed trip.

Common Misconceptions:

• Extra Charge Myth: The temporary hold is not an extra charge, it’s simply a reservation of funds.
• Immediate Release: While the hold is typically released quickly, it can take a few business days to show up on your account.

In Conclusion:

The temporary authorization hold placed by Uber is a standard procedure to guarantee payment for your ride. It may appear as an extra charge on your statement, but it’s not an actual charge and will be released within a few days. Relax, the funds are coming back to you!