Uber Authorisation Hold: What Is It, When Is It Removed, Why It Is Used & More

by Shreya Rathod
Uber Authorisation Hold: What Is It, When Is It Removed, Why It Is Used & More

Apart from the local auto rickshaws and taxis, city folks usually depend on cab aggregators like Uber. And if you are aware, Uber uses an ‘authorisation hold’ on your fare amount which might show as a pending charge on your statement. According to a recent report, Uber has withdrawn this ‘authorisation hold’; here’s all about it.

What Is Uber Authorisation Hold?

uber authorisation hold
Credits: Wikimedia

It is possible that your bank will notify you of a charge when you use the Uber app to order a ride. The fare amount may be subject to a temporary authorisation held by the company, which may show up as a pending charge on your account’s payment method. In order to make sure the card has enough money and, most crucially, to prevent charging your card twice, this is a typical e-commerce procedure.

This authorization hold appears as a charge on the final trip fare once the journey is over. It will be released and only the trip’s real fare will be charged if the final fare is less compared to the initial fare.

When Is It Removed?

The authorisation hold will be released right away when you cancel a trip. The Uber app can charge you a cancellation fee if you cancel the ride outside of our cancellation policy. The sum fluctuates depending on the driver’s time and distance travelled until the trip is cancelled, and it differs for each city.

The change might appear on your account statement the day it is published, or it might take a few minutes, depending on your bank’s policies. It is advised that you get in touch with your bank immediately if you have any questions about their authorization holds policy.

Fear not—the authorisation hold that appears when you request a trip has been lifted. Depending on your card issuer, the change may take a few minutes or several days to appear in your account.

Also Read: From Hot Air Balloons To Boats To Cycles, 5 Ubers You Can Book

A US Couple Had To Pay Around ₹24 lakh

uber authorisation hold
Credits: Flickr/ zombieite

Earlier in June, due to a currency conversion problem, a US couple vacationing in Costa Rica were charged an outrageous Uber ride fee of over ₹24 lakh ($29,994) instead of the anticipated ₹4,500 ($55). The individual clarified that the charge was $29,994.33 in Costa Rican colón on the Uber app, which is about $55 US dollars. They were taken aback, therefore, to find a $29,994 charge in their bank account.

Their bank, Altura Credit Union, advised her that because she had put a travel notice on their account for the trip, the transaction had been approved even though her debit card had a lower daily spending limit.

Uber acknowledged the blunder and blamed a bank problem for the currency conversion in their response to the event. According to Uber, support staff immediately took care of the problem upon receiving the user’s complaint, releasing the authorization hold that had been inadvertently placed because of a bank error that resulted in dollars being applied instead of colones.

Also Read: Cab Aggregators Like Ola And Uber Should Offer Rebate If Driver Cancels, Maha Govt Panel Suggests

The couple’s problem was eventually resolved when Altura Credit Union and Uber Support adjusted the $29,000 charge after four days of back and forth.

Cover Image Courtesy: Flickr/

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