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Uber rolling out payment authorization hold feature for trips on card payments

Apr 6, 2018, 4:10 pm

The most popular car booking app, Uber, always believes in customer satisfaction. Hence Uber is introducing back to back features in order to make the passengers more comfortable. The company’s main objective is a hassle-free ride. This time Uber is trying to give its passengers the most seamless experience possible, from the moment of requesting for a ride until the drop location arrives. So the great experience will come when the Uber app will feature easy payment options.

The way hotels charge their guests, Uber will now authorize non-cash payment (credit and debit cards) method for every trip requested, to the amount of the upfront fare. This is basically important in order to confirm that a user’s account is active and available to fund their trips.

The payment option will be easy. The payment authorization hold feature will allow the passengers to authorize hold the upfront fare amount prior to the trip. This will be a temporary authorization hold that will show up as a pending charge on the user’s account. The user may get a message for the purpose depending upon the criteria of the user’s bank. Ultimately at the end of the ride, this pending charge will be converted to a full charge.

Hence on requesting a trip, an authorization hold will be placed on the passenger’s card, showing up as a pending payment. After the completion of the ride, the pending payment will get converted to a final charge which will be debited from the user’s bank account. The final charge will be the amount that is credited and this could be verified from the bank statements also.

But this payment option may bring several questions. Hence to clarify this, Uber has said that in case of cancellation of the ride, it will void the authorization hold immediately. The void authorizations will disappear from the user’s statement depending on the policy of the bank on Uber payment authorization hold hence this could take a few minutes or a few days.

On the other hand, if the account balance of the user’s credit or debit card linked to the rider account is lower than the estimated fare then the authorization hold will fail. In that case, the user has to choose a different payment method or add a new payment method to the Uber account for requesting a ride.

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