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Does Uber or Lyft deduct any credit card fees from the tips paid by the riders when the company pays the tips to drivers?

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 Posted 2 years ago

When processing tips, Uber and Lyft have to pay credit card fees of between 2.5 and 2.8% of the tipped amount. The question is, do Uber and Lyft deduct that cost before paying the driver the tips?


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    221 Driver
     2 years ago

    No, I do not believe that Uber or Lyft deduct credit card fees from tips that us drivers earn. That being said, Uber and Lyft take about 50 percent of most of the overall charges on our  trips as their cut for their services. About 90 percent of my trips are minimum mileage trips meaning that they are less than 3 miles. For these trips I earn $3.66 per trip with Uber and $3.90 per trip with Lyft and Uber/Lyft take the other $4 that they charge for these trips. It took me a while but I have learned that we, as drivers, cannot possibly earn enough as Uber/Lyft drivers to make it worth our while. Everything I said is true, but it is only true where I work in a small town. 80 percent of my customers are college age and of that group, most NEVER tip. So, take everything I say with a grain of salt, drivers in bigger cities may make tons more money than those of us struggling in Mayberries across the globe. I hope that they do! Good Luck to All of You out in Guruland!😊

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     1 year ago

    I don’t know about the cc fees but I know they don’t take the percentage comissuons from the tip portion. I asked a driver once. 

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     2 years ago

    Interesting question. I also do not believe they they deduct this from our wages but Uber is so sketchy with payments that maybe they do factor this in somehow? If you give a ride to a friend and you look at what the friend pays vs what you make there is always funky math going on 😡