Difference Between Uber Chargeback vs Arrears
Rider Question: ★Today’s article explains the difference between Uber Chargeback vs Arrears!
We will be more than happy to break this down for all the riders: Chargebacks and arrears are separate but related concepts. Put simply, a chargeback is when a user deliberately disputes a charge with their bank. The bank debits Uber for that amount, and then returns the funds to the rider. The rider’s Uber account is then placed in arrears.
Arrears Meaning: Arrears refers to when an Uber account has an outstanding balance. An outstanding balance can be caused by a chargeback, or by some other payment failure (insufficient funds, expired card, etc.)
Chargebacks Meaning: A chargeback is a reversal on a settled Uber fare by the rider’s financial institution that has been initiated by the rider themselves. The rider’s bank debits their Uber account and the rider is refunded. Again, this chargeback will put the rider’s account into arrears, thus preventing them from requesting a ride.
Avoiding Chargebacks: When all possible a rider should avoid doing a chargeback. Companies like Uber absolutely HATE them because they still must pay the driver but the funds from the ride are debited from them. In addition, companies pay an additional fee for chargebacks. If a rider has a fare dispute, then they should contact Uber first to get it resolved. Having a fare’s charge reversed will not make it go away. The rider still will owe Uber. However, if it’s been determined that the fare should have been refunded, Uber will clear the arrears on the rider’s account so they can ride again.
Chargebacks & Arrears: Both mean that the right is sort-of, kind-of in debt with Uber – that they have some amount of money that is owed to Uber. Regardless this type of account is “in arrears.”
Account Disabled: Riders who are in arrears (who have an outstanding balance) – will NOT be able to request a ride unless they pay off this balance. The balance must be paid off in full.
Showing ID & Credit Card: Many times in order to get your account back (even if you are willing to settle the balance) you will have to show your government identification and the credit card. The name on your ID should match your Uber account and credit card. So don’t be surprised if you are asked to provide copies.
Paying The Balance: When a rider log in to their app or their account at riders.uber.com, they will be prompted to pay for their outstanding balance.
Multiple Accounts: If a rider’s account is attached to another account that is in arrears, all connected accounts will be disabled until that balance is paid.
Fraud: Lastly, some chargebacks are due to credit card fraud. If this is the case, then Uber might or might not let the rider pay their arrears so they can ride again. The rider could be kicked off the platform for good.
Do not setup a new account to avoid paying any arrears or because you were banned. It want work, Uber security system will ban your account.