Uber to put ‘authorization hold’ on your credit and debit cards before a trip: Here’s how it works

Uber India has started rolling out a new payment authorization hold policy which will enable the company to hold a rider’s upfront fare amount ahead of a trip. This means that the cab-hailing company will authorize your non-cash payment ( made via credit and debit cards) method for each trip, to the amount of the upfront fare. This move, according to Uber, will help the company in confirming that users’ accounts are active as well as available to fund their trips.

That said, the payment authorization hold option will allow Uber authorize hold a user’s upfront fare only before a trip begins and this temporary authorization hold will then show up as a pending charge on the rider’s account. Further, depending on the bank, user’s will also get a message for the same. In simple words, it is just a pending charge which is converted into a full charge after the trip is completed. A user can also check his bank account statements in order to verify whether the final charge is correct or not, Uber noted.

How the ‘authorization hold’ will work for Uber rides?

1. When you request a ride, a temporary authorization hold will be placed on your selected payment method, for the upfront price of your trip.

2. The hold will the show up as a “pending” charge for your account.

3. In case if your account balance in your linked credit or debit card is lower than the fare estimate, the said authorization hold will automatically fail. You will then need to choose a different payment option or add a new payment method to your Uber account for requesting a ride.

4. When your trip is completed, this hold will be converted into a final charge for the trip fare. Your bank will then send you one or more SMS’ in order to notify you of both the authorized hold and the actual charge.

5. If your trip has been canceled or the total fare doesn’t match with the upfront price, the original authorized hold will automatically disappear from your account. However, depending on your respective bank’s policy on authorization holds, the process could take from a few minutes to even a few days for the canceled/void authorizations to be deleted from your statement.

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