Does Grab charge your credit card?

Does Grab Charge Your Credit Card?

When using Grab, a popular ride-hailing and delivery service in Southeast Asia, users may wonder if their credit card is charged upfront. The answer is no.

Pre-Authorization Hold

When you book a Grab ride or service, Grab places a temporary pre-authorization hold on your credit card. This hold is not a payment but rather a temporary reservation of a certain amount to ensure you have sufficient funds available. The funds remain untouched in your GrabPay Wallet or linked card until the ride or service is completed.

Actual Fare Processing

Once your ride or service is finished, Grab will process the actual fare. This amount will be charged to your linked credit card or deducted from your GrabPay Wallet balance. Any remaining pre-authorization hold will be released, ensuring that you are only charged for the services you used.

Why Pre-Authorization Holds Are Used

Pre-authorization holds are a common practice in the ride-hailing industry. They provide Grab with a guarantee that users have sufficient funds available to cover their rides or services. This helps prevent fraudulent transactions and protects Grab from financial losses.

Important Notes

• Your credit card company may still show the pre-authorization hold as a pending transaction. However, this amount will not be deducted from your available balance until the actual fare is processed.
• If you use multiple payment methods (e.g., GrabPay Wallet and credit card), the actual fare will be distributed across the payment methods based on your preferred allocation.
• If your ride or service is canceled, the pre-authorization hold will typically be released within a few hours or days, depending on your credit card issuer’s policies.

In summary, Grab does not charge your credit card upfront. It places a temporary pre-authorization hold to ensure sufficient funds are available, and only processes the actual fare once the ride or service is completed.