How To Avoid Uber’s New 1.5% Fee on International Rides

Uber is rolling out a new “preferred currency pricing” system. At first glance, it might seem helpful, but you’ll pay more in the long run.

Starting February 27, 2025, when you take an Uber in another country, the fare will automatically show in your home currency instead of the local one, as first noticed by View From the Wing. Uber claims this will “make international travel smoother and more convenient,” but there’s a catch: this so-called convenience comes with a 1.5% conversion fee on every ride.

Here’s how (and why) you should avoid this new fee, despite its seeming convenience.

Uber’s New 1.5% Currency Conversion Fee

This fee is nothing more than Uber using dynamic currency conversion (DCC), a well-known move that benefits businesses while costing consumers more. Fortunately, there’s an easy way to avoid it, but you have to know where to look.

Uber’s preferred currency pricing will soon be the default for international trips, meaning that you need to opt-out and choose to be charged in the local currency instead of your home currency. Paying in your home currency will add a 1.5% conversion fee on every ride. Uber has been offering this option for a while, but the key difference now is that you’ll automatically be opted in. Unless you actively change your settings, you’ll be paying 1.5% more on every ride.

Here’s how the fee works:

• Your ride will be displayed and charged in your home currency.
• Uber will add a 1.5% currency conversion fee to the total fare.
• If your credit card has foreign transaction fees, you could still be charged an additional 3% (or more), since the charge is processed in a different country.

Worse, Uber’s currency conversion rate is unlikely to be better than what your bank or credit card provider offers. Even if your bank charges a small foreign exchange fee, it’s probably lower than the 1.5% that Uber tacks on.

There are some restrictions to know with this new fee:

• It’s unavailable on Uber Cash and business profiles, meaning your monthly Uber Credits from some Amex cards can’t be used in other countries, even if you’re choosing to pay in your home currency.
• It only applies to mobility services, so gift cards and Uber Eats aren’t affected.
• You can’t change the currency option after booking a ride.

How To Avoid This Extra Fee

The good news? You can opt out of this unnecessary fee with just a few taps:

• Open the Uber app and go to Wallet.
• Select Set preferred currency.
• Choose No preferred currency to ensure you’re charged in the local currency.

That’s it! Your Uber rides will then be billed in the currency of the country you’re in, avoiding Uber’s 1.5% surcharge.

Final Thoughts

Uber’s preferred currency pricing is just another fee under the guise of convenience, charged to travelers who don’t understand what’s happening in their settings. However, you can easily avoid this 1.5% fee by opting out within the Uber app and paying in the local currency with a credit card that doesn’t charge foreign transaction fees.

Don’t let Uber’s misleading “convenience” cost you more. Take a minute to change your settings now. It will help you keep your travel budget where it belongs: in your own pocket.