tech

This Is Why Grab Deducts Extra Money When You Pay With Your ATM Card

How much money it "holds" depends on the booking.

Cover image via Amanz.my

If you use Grab, you might have noticed that extra money was deducted from your account when you first started using it

Don't be alarmed. 

Image via Amanz.my

The "deducted cash" is a temporary pre-authorisation to verify your payment

Each time you register a new card onto the app, a pre-authorisation charge will apply.

And it only applies to bookings made by credit or debit cards, and GrabPay credits.

Think of it as a deposit when you book a hotel room. Don't trash the room? And your deposit will be refunded. 

Image via Grab

How much money Grab temporarily "holds" depends on the type of booking you made

According to its website, the amount "deducted" is calculated based on the vehicle type and the time of booking. But it is not charged until the trip is completed.

Also, the "deduction" includes the basic fare shown on your booking screen and may include extra charges including tolls and other applicable charges. 

However, it applies to both successful and unsuccessful bookings.

So what happens to your pre-authorisation payment if your booking was unsuccessful or cancelled?

If you want to make another booking, Grab holds the payment for 30 minutes. If no booking is made within that timeframe, it will immediately cancel the authorisation hold.

The app will then notify your bank to return the funds. Depending on your bank's policy, it may take up to 30 days.

However, if you paid with GrabPay credits, the credits held will immediately be released back into your GrabPay wallet.

Image via KL Gadget Guy

So don't worry if your fare seemed like it cost extra, it may have just been the authorisation payment

With that said, if there are any missing funds and you didn't receive your money back within the timeframe, it'll be best to contact Grab or your issuing bank!

Likewise, if you've noticed cash deducted from your account when you pump petrol, this could explain why:

Petron recently removed the system for all debit cards:

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