Cab aggregator Uber India has started rolling out the payment authorisation hold feature which will allow the company to hold a user’s upfront fare amount ahead of a trip and will show up as pending charge till the completion of the trip – which will help in ensuring that the user’s account is active and/or has enough funds.
From now on, Uber India will put an authorisation hold on your card before you take that Uber ride which will let Uber to hold the upfront fare amount even before the trip begins. Which means, Uber will authorise all the non-cash payments for every trip booked, which will help in confirming that users’ accounts are active and available to fund their trips. It must be noted that the authorisation hold feature will let the company hold any user’s upfront fair only right before the trip begins. The temporary authorisation hold amount will show up as pending charges on user’s account – until the trip ends.
So basically, the entire authorisation hold process will occur in four steps. First, when you book an Uber ride and opt for non-cash payment, an authorisation hold is placed on your card, amounting to the upfront fare. This will be tagged as ‘pending charges’ in your account and will be converted to a final charge once the trip is completed and the amount will be debited from your account. Depending on which bank account you hold, you may or may not a message from the bank notifying regarding the authorisation hold and the final debited amount from your account upon completion of the Uber trip.
This will avoid situations where users opt for non-cash payment methods and detect insufficient bank balance upon completion of the trip – leading to a lot of problems. In a case where the account balance of your credit or debit card linked to your account is lower than the fare estimate, the authorisation hold will fail. If the authorisation hold fails, you will require to select a different payment method or add a new payment method to your Uber account in order to request a ride. Oh and if you just cancel the Uber ride, the authorisation hold will be lifted and voided immediately. A flawless payment procedure.