Why is Uber processing local payment overseas?

I have taken quite a number of Uber rides in Singapore, but found that my local bank charges me a foreign currency conversion fee for my fares.

I searched the Uber Singapore website but found nothing on this practice. I checked with my bank and was told that a foreign entity was charging my credit card in Singapore dollars.

Why is Uber processing my local payment overseas? Shouldn't it have a local bank account or local processing centre if it's operating legally in Singapore?

Krishnamani Kannan

A version of this article appeared in the print edition of The Straits Times on January 28, 2016, with the headline 'Why is Uber processing local payment overseas?'. Print Edition | Subscribe