Grab is introducing authorization holds to verify consumers’ payment methods. Here’s what you need to know.
Safety is a huge part of Grab’s DNA. In fact, one reason we started was to provide safer rides for passengers. We also look at safety in other forms – including the security of our consumers’ payment methods.
Grab passengers can pay for rides with their credit or debit cards via GrabPay. To ensure our payment methods are secure, we’re introducing payment authorizations this month. Here’s what you need to know:
What is payment authorization?
It is a temporary hold on funds on your credit/debit card or GrabPay Credits. For instance, when you place a booking using card payment, the bank will “hold” money on behalf of Grab to ensure there are enough funds to be charged at the end of the ride.
Payment authorization is an industry-accepted practice; in fact, you have probably encountered it before. When you check into a hotel, the concierge usually does a pre-authorization on your credit card, locking down funds to pay for incidental charges (like if you trash the room). If the room is intact – and you haven’t secretly raided the minibar – the money is refunded to you.
When will I be subjected to payment authorization?
When you register a new card, update your payment method to GrabPay, or request a ride using cashless payment, you may see a pending transaction on your payment method. This is only a temporary authorization we use to verify your payment method.
- Every time you register a card in the app, a pre-authorization charge will apply.
- Uninstalling/reinstalling, updating, and logging out of the Grab app will remove your cards listed in the app. Activate your GrabPIN to ensure that whenever you log in, your card information will be saved.
- Cashless bookings. Only bookings made by cashless payments (for example, credit/debit cards or GrabPay Credits) will be subjected to authorizations. This includes successful and unsuccessful bookings.
How much money will Grab put on “hold”?
The amount varies for each ride and will be calculated based on the vehicle type and the time of booking. The “hold” amount will include the basic fare shown on your booking screen and may include extra charges including tolls and other applicable charges. The amount held is not charged until the trip is completed.
What happens if my final fare is less than the hold amount?
Once the trip is completed, only the final fare amount is charged. If your final fare is less than the hold amount, any excess amount held will be released by Grab immediately.
- For bookings made by GrabPay Credits, the excess amount will be released and made available for use immediately.
- For bookings made by card payments, the excess amount will be credited back to your bank/card at the end of the trip. The availability of the funds will be subject to your issuing bank’s policies.
What if my booking is not successful or is canceled after payment has been authorized?
Grab will hold the payment authorization for 30 minutes in case you wish to make another booking. If no subsequent booking is made within that time frame, Grab will cancel the authorization hold.
- For bookings made via card payments, Grab will instruct the bank to return the funds. The availability of the funds will be subjected to your issuing bank’s policies which may take up to 30 days. When this happens, please contact your bank. Grab is not liable for returning the funds to your bank account nor have access to your bank account in this regard.
- For bookings made via GrabPay credits, the credits held will be immediately released back into your GrabPay wallet.